GCU Financial Procedures

Status FinalOwner FinanceSource location Finance websiteLast endorsed June 2014Consultation EB 19 May 2015 and F&GP 2 June 2015Endorsed 2 June 2015Publication 3 June 2015Review Date June 2016

CONTENTS

PART 1 - STRATEGIC LEVEL PROCEDURES

1 BUDGET CONTROL ARRANGEMENTS1.1 Introduction1.2 Responsibilities1.3 Scheme of Delegation1.4 Specimen Signatures1.5 Delegated Financial Limits

2 UNIVERSITY PAYROLL BUDGET

3 UNIVERSITY OTHER COSTS BUDGET

4 RESEARCH & OTHER ACTIVITIES BUDGET

5 GENERAL5.1 Contingency Fund5.2 Budget Carry Forwards5.3 Investments5.4 Filling of Vacancies

5.4.1 Outline of Approval Process5.4.2 Exceptional Circumstances

PART 2 - OPERATIONAL LEVEL PROCEDURES

6 FINANCE OPERATIONAL PROCEDURES

7 PROCUREMENT7.1 General7.2 Purchases 7.3 Sourcing Suppliers7.4 GCU Procurement Journey

7.4.1 General Information7.4.2 GCU Procurement Journey Route 1 (Quotations)7.4.3 GCU Procurement Journey Routes 2 and 3 (Tenders)7.4.4 EU Regulations7.4.5 Advertising of Tender Opportunities

7.5 Exceptions Process - Single Source Justification

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8 OPERATIONAL SERVICES - ACCOUNTS PAYABLE 8.1 PECOS Purchase Order & Authorisation Process and Exceptions8.2 Ordering Goods & Services

8.2.1 Process for Ordering Goods & Services8.2.2 Purchase Order Authorisation Limits8.2.3 Completion of PECOS Requisition/ PO Form8.2.4 Receipt of Order8.2.5 Return of Goods8.2.6 Invoice Processing 8.2.7 Payments in a Foreign Currency or to a Foreign Bank

8.3 Expenses Claims8.3.1 General8.3.2 Expenses Reimbursed by External Parties8.3.3 Expense Claims Authorisation

8.4 Staff Advances8.4.1 Staff Advances – Foreign Currency8.4.2 Staff Advances – Per Diem Rates

8.5 Urgent Payments8.6 University Credit Cards

9 OPERATIONAL SERVICES - ACCOUNTS RECEIVABLE9.1 Tuition Fee Setting9.2 Sales Invoices - Commercial9.3 Tuition Fee Invoices

9.3.1 Students and Sponsors9.3.2 Tuition Fees for Staff Members Sponsored by GCU

9.4 Credit Notes and Waivers9.4.1 Commercial9.4.2 Tuition Fees9.4.3 Tuition Fee Waivers9.4.4 Tuition Fee Discounts/Scholarships

9.5 Credit Control & Debt Management 9.5.1 Commercial Debt9.5.2 Student Debt

9.6 SAAS/SLC

10 PAYROLL10.1 New Appointments10.2 New Starts10.3 Leavers10.4 Amendments10.5 Overtime10.6 Additional Payments10.7 Pension Schemes and Auto Enrolment10.8 Advances of Salary10.9 Payroll Deadlines10.10 Self Employed Workers 10.11 Non Statutory Deductions10.12 Tax Equalisation10.13 Real Time Information (RTI)

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11 TREASURY 11.1 Income

11.1.1 Income received 11.1.2 Banking & allocation of income

11.2 Student cheque cashing facilities11.3 Petty Cash

11.3.1 Limits & Restrictions11.3.2 Reimbursements of Petty Cash11.3.3 Cash Floats

11.4 Discrepancies11.5 Treasury Management

11.5.1 Treasury Management Policy11.5.2 University Bank Accounts - Payments and Transfers11.5.3 Authorised Signatories

12 MANAGEMENT ACCOUNTS12.1 Budget12.2 Expenditure Codes12.3 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 Up12.5.2 Communication of Account Set Up12.5.3 Income/Expenditure within Externally Funded Accounts12.5.4 Project Account Types & Restrictions of Use

12.6 Finance Reports & Financial Discoverer12.7 Transfers & Coding Corrections

12.7.1 Budget Transfers (Virements)12.7.2 Expenditure Transfers12.7.3 Correction of Miscoding

12.8 Inventory Register12.8.1 General12.8.2 Non-IT Inventory12.8.3 IT Inventory

13 INSURANCE13.1 General13.2 Procedures for Travel Insurance

13.2.1 Cover provided13.2.2 Request for claim form

13.3 Use of Own Vehicle on University Business

14 SHORT TERM LOANS/HARDSHIP FUNDS/SAAS CHILDCARE

15 STOCK15.1 Control15.2 Stocktaking & pricing

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16 FINANCIAL STATEMENTS16.1 Responsibilities16.2 Year end accounting returns

17 AUDIT17.1 Introduction17.2 Irregularities

18 VALUE ADDED TAX

19 BUSINESS GIFTS & HOSPITALITY

20 SUBSIDIARY COMPANIES

21 DISCLOSURE OF INTEREST21.1 Conflicts of Interest with External Parties21.2 Conflicts of Interest with Internal Parties

22 PRINCIPLES OF CONDUCT

23 SECURITY23.1 Responsibility23.2 Safeguarding Assets23.3 Periodic Checks23.4 Disposals and Losses23.5 Cash

24 ANTI-BRIBERY ACT

25 LOSSES25.1 Frauds, Misappropriations & Criminal Activity25.2 Special Payments

26 MOBILE PHONES26.1 Principles26.2 Procedures

27 MAIL

28 MANUAL JOURNALS

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PART 1 - STRATEGIC LEVEL PROCEDURES

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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 statute discharged 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 respective Dean, 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.

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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 Holders must ensure that total Other Costs Expenditure remains within the 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.

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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.

5.3 Investments

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 appropriate Finance 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.

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PART 2 - OPERATIONAL LEVEL PROCEDURES

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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 documents listed below. Senior staff who 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

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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 Procurement procedures 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.

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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.

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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 servicesUnder £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.

Below the EU mandatory tender levels, there is an exceptions process available for exceptional circumstances (see Section 7.5).

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7.4.2 GCU Procurement Journey Route 1 (Quotations)

Invitations to quote should be sent to appropriate suppliers of the goods/services required. The Scottish Public Sectors - Public Contracts Scotland website, allows users to quickly e-mail requests for quotation to all approved companies for specific products based on national, regional and local contracts available to the Higher Education sector in the UK.

Glasgow Caledonian University Terms and Conditions of Purchase must always be communicated to potential suppliers when invitations to quote are issued. Quotations should always be treated as confidential.

Upon receipt of quotations, a Value for Money comparison should be carried out. The GCU Procurement Journey Route 1 (Quotations) fully details the quotation procedure. All quotations should be kept, with noted outcomes as evidence of appropriate value for money checks. These should be included as an electronic internal attachment to the PECOS purchase order.

7.4.3 GCU Procurement Journey Routes 2 and 3 (Tenders)

Departments should not obtain tenders without formal training or consulting Procurement. The Procurement Team will provide advice, guidance and assistance regarding the tender documentation, including terms and conditions of contract, and administer the tender procedure.

7.4.4 EU Regulations

EU Procurement Procedures normally require timescales over 4-6 months. The Head of Procurement must be consulted in advance of the issue of tender documents. Due to the commercial risks involved the Procurement Team will always administer the tender process. Glasgow Caledonian University is obliged by law to advertise such tenders in the Official Journal of the European Union (OJEU) and to administer them in accordance with the appropriate legislation. Departments are responsible for providing the Head of Procurement with a full specification for the required equipment or services and detailing the proposed evaluation criteria and weightings to be used in the process. Departments must ensure their specification of requirements is sufficient to meet their needs but avoids extra features which they do not need and will not use but for which the University may end up paying more. Further guidance on drafting a specification and the evaluation process is available on the Procurement website under Specification Guidance and Evaluation Guidance.

7.4.5 Advertising of Tender Opportunities

All Public Sector Organisations in Europe are now required to adequately advertise opportunities below the normal EU thresholds although the timescales, processes and remedies involved in these procurements can be determined by the organisation’s normal procedures. The Procurement Team uses the Scottish Public Sector Advertising website to satisfy these requirements and to advertise all tenders above £50k.

7.5 Exceptions Process - Single Source Justification

The Sole Source Justification Form sets out the reasoning behind the sole supplier claim and can be downloaded from the Forms section of Finance website.

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Sole source justifications are open to challenge by the Head of Procurement. Copies of all documentation should be attached to any order which is placed as evidence of appropriate value for money checks.

Where the value of the purchase exceeds £10k, the completed Sole Source Justification Form must be sent to the Head of Procurement for approval and authorisation.

8 OPERATIONAL SERVICES – ACCOUNTS PAYABLE

8.1 PECOS Purchase Order & Authorisation Process and Exceptions

The automated order system (PECOS) should be used whenever possible to reduce paperwork for the user and improve the quality of purchasing information in order to reduce costs.

An official Purchase Order (PO) must be raised for goods and services to be purchased by departments on behalf of the University using the PECOS system. If the supplier is not suitable for adoption to PECOS, the non-PECOS PO process is utilised. Examples of this include:

• Petty Cash purchases• Goods or services supplied under contract – taxis etc.• Library books/periodicals• Eye Clinic• Utilities• Capital Projects• Salary Recharges• Courses and Conferences• Purchases less than £1,000 where credit cards are not accepted

Any other instances of non-PECOS spend will have been approved in advance by the budget holder (or Infrastructure Group for Capital projects). Paper based orders can be utilised at this time.

Purchases using the credit cards are covered in a separate Visa Card Procedure Policy which is available through the Finance portal.

8.2 Ordering Goods & Services

Before any expenditure can be incurred, the Budget Holder must establish that there are adequate funds in the Budget.

Procurement Procedures must then be followed, depending on the value of the expenditure over a four year period (see section 7.4.1 GCU Procurement Journey – General Information).

8.2.1 Process for Ordering Goods & Services

The appropriate order documentation must be used when ordering goods that are not one of the examples listed at Section 8.1.

PECOS Orders - PECOS should be used by authorised staff to raise requisitions which, following an approval route, become orders which are transmitted electronically to suppliers.

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Paper Based Orders – A small stock of Purchase Order Forms are held by the Operational Services team within Finance.

8.2.2 Purchase Order Authorisation Limits

The Delegated Authority Policy contains details of all financial limits for approval, commitment and payment of purchases.

The actual financial limits that an individual with delegated authority has, is contained within the Scheme of Delegation form that is completed when the delegated authority is granted. This information is also entered and maintained within the PECOS system.

NB. Subject to the above, all authorisations must be independent of the person(s) who raises the order. See Section 21 Disclosure of Interest and Section 22 Principles of Conduct.

8.2.3 Completion of PECOS Requisition/PO Form

PECOS RequisitioningThe person ordering the goods should log into PECOS and create a requisition either by searching online catalogues or from an External Marketplace or by adding Non-catalogue items.

Appropriate budget codes should be entered and the correct VAT code selected.

The requisition is then submitted and routed to the appropriate budget holder as per the Scheme of Delegation information contained within PECOS.

The budget holder (approver) then receives an e-mail notifying that there is an order to be approved. The approver should log into PECOS and review the information contained in the order, check the budget codes and approve the order or return to the requisitioner if any information is incorrect or requires to be amended.

Following approval, the order is submitted electronically to the supplier.

Paper Based Purchase OrdersThe person ordering the goods should complete the form giving as much detail as possible.

A price exclusive of VAT must be recorded against each order line and a total including VAT entered for the complete order. Appropriate budget codes should be entered in the boxes provided. The requisitioner and approver must sign the form before this is returned to Finance.

Operational Services, 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.

Signatures are a vital element in the system of accountability. They are not merely an acknowledgment but a personal commitment that the information contained within the order is accurate and the order has been made for the proper furtherance of departmental/University objectives.

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8.2.4 Receipt of Order

PECOS - Orders Received in FullWhen the goods are received in full, the requisitioner should log into PECOS and receipt the goods against the appropriate order number entering the delivery note number and the date the goods were physically received. This will update the receipt status in PECOS to ‘Fully Received’.

PECOS – Partial DeliveriesFor partial deliveries, the requisitioner should log into PECOS and receipt the specific goods received against the appropriate order number entering the delivery note number, the date the goods were physically received and the correct number of items received in the shipment. This will update the receipt status in PECOS to ‘Partially Received’.

This process should be repeated as each delivery is received until all items on the order are completely received and the receipt status in PECOS is updated to ‘Fully Received’.

Paper Based Purchase Order - Orders Received in FullWhen the goods are received in full, the Green Goods Received Note should be certified and dated by the person receiving the goods and then passed to Finance. Finance will match the Goods Received Note with the invoice, prior to processing for payment.

Paper Based Purchase Order – Partial DeliveriesFor partial deliveries, the Green Goods Received Note should be photocopied, with the goods received clearly marked on the photocopy. The copy Goods Received Note should be certified and dated by the person receiving the goods before passing to Finance for processing. On delivery of the final part of the order the original Goods Received Noted should be certified and sent to Finance as above.

8.2.5 Return of Goods

When goods are received but have to be returned due to being faulty, incorrect or over shipped, the supplier should be contacted and informed that goods are being returned and a returns reference number obtained.

PECOS OrdersThe requisitioner should log into PECOS and return the items against the appropriate order number entering the returns reference number, the date the goods were returned and select the reason for returning the items. This will update the returns status in PECOS to ‘One or more returns’ and will prevent payment of the invoiced order until a credit note is received for the returned items.

Non-PECOS OrdersThe requisitioner should ensure that any invoice received relating to the order reflect the returned goods. Details of the return must be forwarded to Operational Services to allow the invoice to be placed on hold until a credit note is received for the returned items.

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8.2.6 Invoice Processing

Invoices should initially be received in Finance. The only exception is in the case of the Library, where the invoices are sent directly to the Library. Any other departments receiving invoices directly from suppliers must pass these immediately to Operational Services for processing.

Finance will then send invoices to departments in the following circumstances:

Where documentation is incomplete; Where there is a significant price difference between invoice and order value (over

10%); For non-PECOS PO invoices; Where Operational Services believe PECOS should be utilised, the Budget Holder must

provide a valid reason for the non completion of a purchase order.

In the above circumstances Finance shall:

Advise the reason for passing the invoice to the department, and; Request that the invoice is approved for payment (or credit note requested) by an

approved signatory, and; Request the invoice be returned to Finance for processing for payment.

Operational Services enter all invoices on the financial system. The invoices will be placed on hold until correctly authorised and will maintain a log of details of the department the invoice was sent to, the reason it was sent and the date it was sent.

8.2.7 Payments in a Foreign Currency or to a Foreign Bank

In order to avoid any unnecessary processing delays, certain additional information is required for foreign currency invoice payments and requests for International Electronic Transfers. The following information should be provided if it does not already appear on the invoice:

Name & Address of Payee Name & Address of Bank Bank Account Number or IBAN Number Swift Code ABA Routing Number (for payments to the USA)

Please note that due to the nature of International Bank Transfers/Electronic Transfers, the exact payment date cannot be guaranteed. Requests should be made at least 10 business days in advance of the required payment date. Foreign currency invoices will be paid via an electronic payment run uploaded to Corporate Online, which is the preferred payment method of the University.

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8.3 Expenses Claims

8.3.1 General

Full procedures on all aspects of University expense claims are covered within the Expenses Policy available from the Finance portal.

All staff members are required to process expense claims through iExpenses. The system allows users to input not only their personal out of pocket expense claims but also allows University credit card holders to reconcile their VISA transactions online. A comprehensive iExpenses Guide for staff is available from the Finance portal.

Non staff members should submit a signed paper based expense claim.

8.3.2 Expenses Reimbursed by External Parties

Departments/Schools are responsible for ensuring that all costs to be reimbursed by an external third party are claimed as soon as possible. An Invoice Request Form should be completed and submitted to Operational Services for processing.

8.3.3 Expense Claims Authorisation

Expense claims must be authorised in accordance with the Delegated Authority Policy. If claims are submitted through iExpense, they are automatically routed to the supervising manager with budget responsibility.

Where staff expenses are being reimbursed by an external body (e.g. by another university or research funder), the procedures outlined in the Expenses Policy should still be adhered to and the same authorisations will be required. It is the responsibility of the individual staff member to initiate the reimbursement process, not Finance.

All authorisations must be independent of the person or persons making the claim or for whom re-imbursement is claimed. See Section 21 Disclosure of Interest and Section 22 Principles of Conduct.

Valid receipts must support all claims for expenses. Finance reserves the right to exclude, from any claim, those items not supported by receipts.

Expenses will be reimbursed fortnightly by BACS.

8.4 Staff Advances

8.4.1 Staff Advances - Foreign Currency

Staff Advances are available to University credit card holders travelling overseas on University business. Foreign currency can be ordered through a Bureau de Change in advance of travelling, or by withdrawing cash/currency in arriving at the destination country from an ATM using a University VISA card. An advance should not exceed £1,000 and will require the prior agreement of the Head of Department or Executive Member. This limit is to comply with

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University’s Travel Insurance Policy and also the single transaction limit applied to all University VISA cards. Further guidance can be found in the Staff Advances Policy.

It is the staff member’s responsibility to reconcile their currency purchases/ cash withdrawal transactions on a regular basis through iExpenses and provide full details of expenditure together with the relevant receipts, clearly indicating the currency and exchange rates used. Where receipts are unavailable the reason for this must be detailed in the justification field within the system.

Foreign currency must be converted back to GBP by the members of staff before returning in person to the Santander Branch on campus.

Should the staff member fail to account for the advance, Finance reserves the right to withhold the reimbursements of expenses until the matter is resolved, or make a direct deduction from payroll of the outstanding sum.

Once the advance has been fully accounted for, the advance will be cleared and the expenses charged to the nominated cost centre.

It is important to note the above procedure applies irrespective of the source of the funding i.e. Personal Development Account, Department Cost Centre or externally funded.

8.4.2 Staff Advances – Per Diem Rates

Advances may be made exceptionally where overseas travel is part of an externally funded project and the use of per diem rates is acceptable according to the funding body’s terms and conditions. In such instances, per diem rates are given in line with published HMRC Worldwide Subsistence and Accommodation Rates. Per Diem rates cover accommodation, meals, local travel costs and incidental expenses. Please note that a full day normally includes an overnight stay.

8.5 Urgent Payments

In exceptional circumstances an urgent payment may be processed at the discretion of the Senior Management Team in Finance.

8.6 University Credit Cards

Credit Cards can be issued by the University where there is a recognised and approved business need. They are also used to procure goods/services from suppliers not suitable for adoption to PECOS (less than £1,000 annual spend or less than 6 transactions annually).

All transactions made with the card must be wholly, exclusively and necessarily in the performance of duties for the benefit of the University and can only be for items purchased as part of normal responsibilities at work. Personal use is not permitted.

Cardholder transactions are interfaced on a daily basis from RBS plc into iExpenses for reconciliation.

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Each card includes a transaction limit, a monthly purchase limit and prevention of use against certain merchant categories.

Credit cards issued by the University do not have any impact on personal credit status of individual card holders.

The University reserves the right to withdraw any card that is not being operated within the terms of University procedures.

Please refer to the Visa Card Procedures Policy for full details on using University issued credit cards.

9 OPERATIONAL SERVICES - ACCOUNTS RECEIVABLE

9.1 Tuition Fee Setting

Tuition fees are set annually through the Tuition Fees setting process and approved by the School SMG or Executive Board.

International Fees will be set annually by the International Office and approved by the Executive Board.

Co-ordinated by Finance, Home and EU Fees are set annually, one year in advance, by the Schools during the Planning process and to satisfy the information requirements for Key Information Sets (KIS). All Home, EU and RUK fees for programmes and stand alone modules must be reviewed and approved by the School Senior Management Group (SMG).

Operational Services in conjunction with Enterprise Information Services, will update the Fee Matrix within the Student System.

All new programmes or modules must have an agreed fee for the initial offering in the Programme or Module Approval paperwork that is submitted via the Academic Database System for the new course code to be created. Finance will create an entry in the Fee Matrix for the new programme, or stand alone module, on receipt of confirmation from the appropriate School.

9.2 Sales Invoices - Commercial

Finance raises all invoices for sums due to the University. Under no circumstances should any individual, School or Department raise an invoice in the University’s name.

If a Department supplies goods, services or equipment to a third party they should notify Operational Services that an invoice is to be issued by completing an Invoice Request Form. The VAT Manual should be consulted when raising commercial invoices.

All invoices are due for payment immediately. Exceptions to this must be agreed in advance with the Financial Controller.

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9.3 Tuition Fee Invoices

For full details please refer to the Fees and Refund Policy.

9.3.1 Students and Sponsors

Operational Services will issue invoices for Tuition Fees to students and Sponsors once students have completed registration onto their programme of study.

Any requests for invoices for Tuition Fees not handled within the Student System should be notified to Operational Services either on a spreadsheet detailing the Matriculation Number, Student Name, Course or Module Code and budget code, or by completing an Invoice Request Form. Operational Services should be contacted for this spreadsheet.

Invoices for Tuition Fees can only be raised for registered students. Invoices will only be raised in advance for the next Academic session in exceptional circumstances and only where full student details are provided.

Home, EU and RUK student invoices can be paid in full or during the course of the Academic Year following the set up of a mutually acceptable payment plan. International student invoices are subject to set payment dates depending on the course start dates. Terms and conditions relating to the payment of student fees are detailed in the Fees and Refund Policy.

9.3.2 Tuition Fees for Staff Members Sponsored by GCU

Staff members who are funded by GCU should register as sponsored by GCU.

Operational Services will request authorisation by the relevant manager as per the Scheme of Delegated Authority. On receipt of this authorisation, Operational Services will charge the department’s budget code.

9.4 Credit Notes and Waivers

9.4.1 Commercial

If an invoice value is to be adjusted a Credit Note Request Form, detailing the reason, should be completed by the Department and submitted to Operational Services.

All adjustments to an invoice must be approved by the relevant senior manager as per the Scheme of Delegated Authority.

9.4.2 Tuition Fees

In the event of students withdrawing from a programme of study, they must advise the Programme Administrator in writing. The last date of attendance is used as the date of withdrawal to calculate any fees due to GCU. Refunds for International students (less an administrative fee) are only considered in the event that a Visa to study at GCU has been refused by the UK Border Agency.

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9.4.3 Tuition Fee Waivers

Requests for Tuition Fee Waivers should be submitted with supporting documentation to the Dean and the Finance Business Partner.

9.4.4 Tuition Fee Discounts/Scholarships

Rates are agreed during the Fee Setting Process by the Schools and the International Office.

ScholarshipsA list of scholarships available can be found here.

Discounts Students, whose fees are over £5,000, and who pay in full prior to the start of Term are entitled to an early payment discount (conditions may apply). The rate for the early payment discount is set annually by the Executive Board.

Students who have received a previous qualification from GCU (or one of our founding institutions) are entitled to an alumni discount, set annually by the Executive Board. Students should confirm that they are a GCU graduate when applying for masters or research course and the discount will be applied to any fees that are charged (after any third party funding has been deducted).

Where a student is eligible for more than one discount/ scholarship, the highest discount/ scholarship will apply.

9.5 Credit Control & Debt Management

For full details please refer to the Credit Control and Debt Management Policy.

The Operational Services team monitor all outstanding University debt, including outstanding debt for University subsidiaries. All overdue debts will be passed to a debt collection agency for recovery and legal action where necessary.

The write off of bad debts are approved annually by the Chief Financial Officer as part of the production of the Financial Statements.

9.5.1 Commercial Debt

Whilst the procedure is specific to each case, the Credit Control and Debt Management Policy highlights the steps which will be taken to recover debt.

Invoices will be treated as individual transactions when reminders are issued.

9.5.2 Student Debt

On registration all students should provide the University with information on how their tuition fees will be paid. It is important that students carefully consider if they are eligible for funding/ sponsorship or are a self funded student. If the student is eligible for any form of funding, it is the responsibility of the student to apply for this for each academic year of their study.

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If confirmation of funding is not received from SAAS/SLC during the appropriate academic year the student will be personally liable for their tuition fees.

It is the student’s responsibility to provide full financial sponsor information at Registration and failure to do so will result in the student being personally liable for their tuition fees.

Whilst the procedure is specific to each case, the procedures highlighted in the Credit Control and Debt Management Policy differentiates between academic and non-academic debt.

The University reserves the right to request payment in full prior to registration from any student who has had previous outstanding debts to the University.

9.6 SAAS/SLC

Eligible Scottish domiciled and EU students can apply to the Students Award Agency Scotland (SAAS) for financial assistance. Where eligible, tuition fees will be paid direct to the University on the student’s behalf.

Students domiciled in England, Wales and Northern Ireland (RUK) are liable to pay their tuition fees. RUK students can apply to the Student Loan Company (SLC) for a tuition fee loan. The tuition fee loan will be assessed together with the student’s eligibility for a student grant.

It is the responsibility of the student to apply for funding for each academic year of their study. If an application is not made the student will be personally liable for their tuition fees. We recommend that students intending to apply for such funding do so prior to Registration each Academic year.

Finance receives notification from SAAS and SLC of all payments from students who have applied and reconciles this against the details provided by the student at registration. Operational Services will prepare a reconciliation showing any monies to be claimed or returned to SAAS/SLC for approval by the Financial Controller.

10 PAYROLL

10.1 New Appointments

No new appointment requests will be processed by People Services unless there is evidence of adequate funding in place.

10.2 New Starts

People Services will notify Payroll of all new starts on an Action Request form, which will facilitate the individual’s addition to the University payroll.

All new employees must complete a profile document for People Service on commencement of their employment. This is then sent to Payroll, who ensures that the Payroll system is updated with the relevant details. A P45 should be supplied by the new employee, where appropriate.

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10.3 Leavers

Heads of Department must advise People Services of leavers as soon as possible including leaving date and any remaining annual leave entitlement. An Action Request form is then sent by People Services to Payroll. Every month Payroll provides a report to Operational Services (to check that there are no unreconciled credit card transactions) and Procurement (to update PECOS).

10.4 Amendments

All payroll amendments, including changes of address, are sent via the Oracle work flow statements from People Services to Payroll, or on an Action Request form.

10.5 Overtime

All overtime claimed must be entered on an Overtime Form . Completed forms must be authorised by the relevant individual as per the Scheme of Delegation/ Delegated Authority Policy and returned to Payroll as soon as possible after the claim period.

Payroll must receive the authorised request by the 10th of the month to ensure payment in that month. The payments are paid a calendar month in arrears.

10.6 Additional Payments

Any additional payments to salaried staff, or one off payments to non salaried staff, must be recorded on the casual hour’s form which is available from People Services. They will then undertake checks to ensure legal entitlement of non salaried staff to work in the UK.

All payment requests must be authorised by the relevant individual as per the Scheme of Delegation/ Delegated Authority Policy. The form should be authorised and submitted by e-mail to People Services Casuals Hours e-mail box by the 1 st of the month following the work being carried out. People Services will then authorise the payments and send them to Payroll.

Payroll must receive the authorised request, which has been processed by People Services, by the 10th of the month to ensure payment in that month. The payments are paid a calendar month in arrears.

The procedures in relation to payments for undertaking activity for the University are consistent and will not change whether the activity is carried out on Campus in Glasgow, London or overseas.

10.7 Pension Schemes and Auto Enrolment

HMRC’s Auto enrolment legislation is in place at the University.

All new salaried staff will be enrolled into the correct pension scheme from their date of joining, and can opt out if they wish by completing opt out forms. These can be obtained from the relevant pension providers. The Payroll section can refund up to three months contributions. After this date the refunds are processed by the relevant pension providers.

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The University’s staging date was 1 May 2013, and it has adopted the transitional postponement to 30 September 2017 for its existing salaried staff, as they have all previously had the opportunity of joining one of the Universities defined benefit schemes. The University is using the three month postponement period for non-salaried casual staff.

The University’s Payroll provider has a pension solution for monitoring casual staff and this will advise Payroll on a monthly basis of those who need to be added to a scheme. Payroll will determine which scheme the individual is to be enrolled on and will process as required. Casual Staff can opt out if they wish by completing opt out forms which can be obtained from the relevant pension providers.

The University currently operates three pension schemes:

The Strathclyde Pension Fund – Non teaching staff; The Scottish Teachers Superannuation Scheme – Teaching staff; and Universities Superannuation Scheme – Staff with continuous service already in the USS

scheme.

Details of the pension schemes are available from the People Services portal. People Services will advise Payroll of the particular pension scheme a salaried employee is to be added to on the Action Request form.

10.8 Advances of Salary

Pay advances are only considered in very exceptional circumstances on the written approval of the Financial Controller.

10.9 Payroll Deadlines

Monthly salaries are paid by BACS on the 28th of the month or, if the 28th is a non-banking day, the last banking day before the 28th.

All information regarding employees’ salary, part-time hours, overtime, additional payments,etc, is required to be in the Payroll Section for processing by the 10th of the month in which payment is due. If the 10th is a non-business day the cut-off will be the business day immediately prior to the 10th.

Payroll cannot guarantee that information received after that date will be processed in time for the current payroll.

10.10 Self Employed Workers

External staff engaging in part-time teaching or other work similar to full time staff will be treated as employees unless an Individual Status Questionnaire confirms they can be paid gross by invoice, thus indicating that they are self-employed.

Consultants who perform most of the work off site may be treated as being self employed and payment can be paid gross. An Individual Status Questionnaire needs to be completed to confirm their status.

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If self employment is confirmed an invoice must be sent to the University for payment. The invoice should be authorised and coded by the budget holder and then sent to Finance for payment. If self employment cannot be confirmed then the procedure for additional payments (Section 10.6) should be followed.

10.11 Non-statutory Deductions

Advice of non-statutory deductions, such as union subscriptions and additional voluntary contributions, is provided to Payroll by the relevant external body after application by the employee.

Staff wishing to participate in salary sacrifice schemes offered by the University must advise People Services, who will then forward the appropriate information to Payroll for processing.

10.12 Tax Equalisation

The Tax Equalisation Policy may apply to employees who undertake a long term overseas assignment. The University’s Tax Equalisation Policy will change periodically to accommodate new tax legislation.

10.13 Real Time information (RTI)

RTI is in operation at the University and relevant pay and tax information is sent to HMRC on a monthly basis. This provides HMRC with real time information for all individuals being paid on the University Payroll.

This initiative was introduced by HMRC to assist them, as well as the individual, in obtaining timely tax code corrections. It will also aid the recovery and repayments relating to under and over paid taxes. It will provide HMRC with accurate information which, they can, in turn provide to Department for Work & Pensions (DWP) for the new Universal Credit scheme which is being introduced at a future date.

11. TREASURY

11.1 Income

Income collected at all locations across the University should be handled in accordance with the Cash Handling and Banking Procedures and Card Handling Policy .

11.1.1 Income received The following payment methods are available:

Online by debit or credit cardThe University has an online payment facility, and this is the preferred and quickest method of making a payment to the University. Recurring card payment plans, where available, can be set up using this payment method.

Directly into the University Bank Account/BACSThe University allows for students, sponsors and suppliers to make payments by bank transfer directly into the appropriate operational bank account.

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By telephonePayments can be made by contacting Finance directly on 0141 331 8195. Recurring card payment plans, where available, can be set up using this payment method. Finance must speak to the card holder to get permission for their card details to be used when taking payments over the telephone.

By chequeAll cheques should be made payable to ‘Glasgow Caledonian University’ or the relevant subsidiary company. Cheques received directly in Finance will be handled by Treasury.

By cashSuch payments can be made by students only where the above options are not possible. Students must make the payment in person at the Santander Campus Branch. We strongly advise against students carrying large amounts of cash, so where possible payments should be made online or by bank transfer.

In addition, Accommodation, Library, Arc and the Eye Clinic collect income for their relevant activities.

All cash collected by departments outwith the above locations should be paid into the University Bank Account at the Santander Campus Branch on the date of receipt.11.1.2 Banking & allocation of income

All income is deposited in the University’s or subsidiary’s operational bank account. The frequency of bankings will be dependent on the location after taking into account the value of income received on a daily basis. All income collected on University premises, with the exception of the Santander Campus Branch, is collected by the appointed Security firm.

Income will be allocated in the financial system by Treasury following its receipt, in accordance with the Receipt of Income Procedures.

11.2 Student cheque cashing facilities

The University’s operational Bank will cash University cheques up to £1,000 at the Business Cash Counter in the local branch. Photographic identification is required to access this facility and cheques exceeding £500 will also require telephone authorisation from Treasury.

11.3 Petty Cash

11.3.1 Limits and Restrictions

Disbursement from petty cash shall be made from Base as follows:

For amounts to a value not exceeding £40. Note: It is not permitted to split a single purchase exceeding £40 between several claim forms to meet the petty cash limit.

Goods must be purchased via Pecos or using a University Purchasing Card for purchases exceeding the Petty Cash Limit.

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Advances of Petty Cash (IOUs) shall only be made in exceptional circumstances and requires two signatures, the person to whom the advance is made and that of an authorising officer.

Note: For security and insurance reasons the Base maintains as small an imprest as possible and is therefore required to adhere strictly to petty cash guidelines within the Cash Handling and Banking Procedures.

11.3.2 Reimbursements of Petty Cash

Re-imbursements of Petty Cash shall only be made on receipt of an authorised Petty Cash Claim Form. Original receipts must be attached as proof of purchase. Petty Cash Claim Forms should be taken to the Base.

11.3.3 Cash Floats

Departments who don’t have easy access to the Base may retain a small petty cash float for incidental expenses.

Departments may also retain a petty cash float for the purpose of making subject payments for the duration of the study.

Floats can be obtained by completing a Petty Cash Float Request Form, available from the Finance portal and returning to the Operational Services Section. Instructions for operating the float are available from Treasury. Individual departments are responsible for the security of their own float. Treasury maintain an overall record of all Petty Cash floats for audit purposes.

On an annual basis individual departments with Petty Cash floats will be asked to return a Petty Cash Reconciliation as at the year-end date (31st July).

11.4 DiscrepanciesAny discrepancies in cash are covered by the Financial Misconduct Policy and should be reported in accordance with the following procedure:

Any discrepancy should be reported to the Line Manager concerned as soon as possible after it is discovered.

The Line Manager will report this to Treasury immediately. The Financial Controller (or nominee) will initiate an immediate investigation. Within one working day, if the issue is unresolved, the Financial Controller will report it

to the Chief Financial Officer or, if unavailable, the Principal and Vice-Chancellor. The decision whether or not to inform the police will be made by the Financial

Controller in consultation with the Chief Financial Officer and/or the Principal and Vice-Chancellor, as appropriate.

The Financial Controller will notify the Internal Auditors. A report will then be drawn up for Audit Committee and in the case of material

discrepancies the Funding Council will be informed.

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A decision on whether there should be notification of the circumstances and outcome of an investigation amongst the wider University community will be made by the Financial Controller, the Chief Financial Officer, and the Principal and Vice-Chancellor having regard to the circumstances of the case.

11.5 Treasury Management

11.5.1 Treasury Management Policy

Please refer to the Treasury Management Policy for information and guidelines.

11.5.2 University Bank Accounts – Payments and Transfers

All payments from the University and subsidiaries Bank Accounts must be authorised in accordance with the guidelines documented in the Delegated Authority Policy prior to being passed to Finance for payment.

Funds may be disbursed from the University Bank accounts by the following method of payment:

BACSThis is the University’s preferred payment method as it is the most efficient and economical. BACS payment runs are prepared by Operational Services and reviewed by a member of the Senior Finance team before being passed to Treasury Management who are responsible for the secure transfer of the encrypted BACS payment files that are automatically generated by the financial system.

Online banking system paymentsThe University has the facility to make payments via the online banking system. Payment documents are processed by Operational Services and transmitted by the Senior Finance team. The main types of transactions paid by this method are: emergency payments; inter account bank transfers; Treasury transfers; and foreign payments.

Inter account bank transfers are defined as transfers between University and subsidiary company bank accounts with the operational Bank or the University Santander Campus Branch account, and should be authorised for payment by Senior Finance staff on completion of an Inter Account Transfer Request with supporting documentation.

Treasury transfers, defined as transfers of funds in excess of working capital needs to/from approved institutions, requires authorisation by two signatories from the University Executive Authorised Signatory Panel. Actual transfers are executed in line with the approved means – either CHAPS or telephone instruction. The Chief Financial Officer, the Financial Controller and the Treasury HOS are all authorised to provide telephone instructions for the movement of funds, where applicable.

Senior Finance staff process all authorised payments made via the online banking system.

Cheques Cheque payment runs are reviewed by a member of the Senior Finance team. Treasury Management are responsible for the printing of cheques from a file automatically generated by

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the financial system. The cheques are printed on a Troy Security Printer using watermarked A4 Laser cheques printed with MICR toner and will contain the Principal and Vice-Chancellor’s lithographic signature. The printer remains locked when not in use and cheques will only be able to be printed once it has been unlocked by one of the key holders.

The designated key holders are the:

Financial Controller; and Director of Financial Planning.

Direct Debits /Standing Orders

Any instruction to make payments by Direct Debit or Standing Order requires authorisation by two signatories from the University Executive Authorised Signatory Panel in accordance with the Bank Mandate.

Any supplementary payments to be made, outwith the normal Direct Debit/ Standing Order terms, will require to be authorised by two signatories from the University Executive Authorised Signatory Panel.

11.5.3 Authorised Signatories

GCU & Subsidiary CompaniesAll approved financial institutions, as detailed in the Treasury Management Policy, will be advised of amendments to the panel of authorised signatories approved by Finance & General Purposes Committee. Names of authorised signatories are amended following changes in personnel.

12 MANAGEMENT ACCOUNTS

12.1 Budget

Each year the University Executive considers budget options on receipt of the SFC funding announcement letter, and makes recommendations to the University Court on the budget strategy for the forthcoming financial year.

As part of the budget process for any year Finance will issue each School and Professional Support Department with a Budget Template which will include full detailed payroll forecasts.

The budget process is integrated with the Planning Process and takes account of the University’s strategic direction including Government priorities.

As a result of this process, and in consultation with Schools and Professional Support Departments, Finance produces a draft budget for the Executive Board and the Finance & General Purposes Committee, who will then have final deliberations on implementation of the University’s budget strategy for that year.

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The budget process is complete when the budget has been approved by the University Court. Once approved each School and Professional Support Department will be issued with:

• Budget allocations relating to their School/Department; and • Payroll budget details relating to their School/Department.

In addition these budgets will be available in Financial Discoverer and will be reported on via this mechanism throughout the budget year to the relevant budget managers.

12.2 Expenditure Codes

The budget allocations page received by Schools and Professional Support Departments shows the primary expenditure code used for the Cost Centre and the secondary analysis code for each line within the budget.

The code appropriate to the type of expenditure being incurred should be used on order and authorisation documents and invoices etc.

The expenditure code system within the University consists of three parts:

• Primary Code – used to denote the Cost Centre e.g. Biology, Student Services, Facilities Management etc;

• Secondary Code – used to denote the type of expenditure e.g. Computer Equipment, Library Books, Business Travel etc; and

• Project Code – used to denote the funding e.g. Research Council, Conference, European Social Funding etc.

An example of the Budget code for a computer software purchase from an ESF project owned by Finance is as follows:

PRIMARY CODE SECONDARY CODE PROJECT CODEFinance10906

Computer Software1000

European Social FundingM9000

A list of common secondary codes is available from the Finance portal and Management Accounting within Finance should be contacted for advice when additional codes are required.

12.3 Externally Funded Grants and Contracts

12.3.1 Pre-Award

Research Projects and Commercial Development ActivityInformation regarding Pre-award Research projects & Commercial Development Activity can be obtained from the Research, Innovation and Enterprise website or by contacting the Research, Innovation and Enterprise (RIE) Office.

University guidelines for external grant applications and contract bids should be followed in preparing submissions for funding.

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A Project Approval Form must be completed for all applications. In addition, all applications for Research grants or contracts must also include a completed Full Economic Costing Form.

Once completed, the project approval form must be signed by the member of staff leading the project and the Dean of the School. This, and all relevant documentation, should then be forwarded to RIE.

Before recommending that formal authorisation is given by the relevant delegated authority as per the Delegated Authority Policy, RIE will confirm:

All direct costs of the proposed activity are identified and quantified in line with the University costing spreadsheet model.

University overheads are recovered (where these costs are eligible for external funding). Prices proposed by Schools for commercial work are not less than the direct cost. An acceptable offer of grant, research agreement or relevant contract, or client

acceptance of University standard terms and conditions for the supply of consultancy and other services is in place concerning the proposed activity.

Individual members of staff are not permitted or authorised to sign or otherwise enter into agreements or contracts on behalf of the University.

Continuing Professional Development (CPD)Information regarding CPD activity can be obtained from the relevant Finance Business Partner.

A CPD Costing Template is available from the Management Accounts section and must be completed for all CPD Activity.

Once completed this should be forwarded to the relevant Finance Business Partner for approval.

12.3.2 Post-Award

Once a contract/grant has been awarded, RIE will forward the relevant authorised paperwork to Finance to enable an account to be opened.

12.4 Glasgow Caledonian University Company (GCUC) Ltd, GCU Academy Ltd and GCU NYC Inc.

Further details of the GCUC Ltd, GCU Academy Ltd and GCU NYC Inc. can be found in the Subsidiary Company Manual.

GCUC Ltd is the commercial arm of the University which allows the University to take advantage of commercial contracts without compromising its charitable status.

GCU Academy Ltd is a trading company and its principal activity is the provision of closed courses that lead to a university-level qualification.

GCU NYC Inc. was incorporated as a non-stock corporation under the laws of the State of Delaware on February 20, 2013. The corporation provides executive education to its students by way of town hall events and classroom taught courses.

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GCUC Ltd, GCU Academy Ltd and GCU NYC Inc. are 100% owned by the University. All taxable profits made by GCUC and GCU Academy are gift aided to the University annually. Profits made by GCU NYC Inc. will be remunerated to the University through the mechanism of intercompany recharges.

GCUC Ltd, GCU Academy Ltd and GCU NYC Inc. are separate legal entities in their own right. Requests to raise sales invoices or pay purchase invoices must be coded correctly in order to ensure the receipt or payment is made to/from GCUC Ltd, GCU Academy Ltd or GCU NYC Inc. and not the University.

The project code denoting GCUC funding will begin with ‘K’ , the project code denoting GCU Academy will begin with ‘D’ and the project code denoting GCU NYC Inc. will begin ‘N’.

12.5 Account Set Up and Use

12.5.1 Initiating Account Set Up

Externally Funded Accounts - Management Accounting will allocate an account code on receipt of completed authorised paperwork from Research, Innovation & Enterprise.

Other Accounts – On an exceptional basis Management Accounting will allocate an account code on receipt of appropriately authorised paperwork detailing the type of account required, the purpose and source of funding for the account. However, it is anticipated that the majority of account setups will flow from Pre-Award and Research, Innovation & Enterprise.

12.5.2 Communication of Account Set Up

Management Accounting will e-mail the account holder to inform that a new account has been set up and will activate the account at set up.

12.5.3 Income/Expenditure within Externally Funded Accounts

The Delegated Authority Policy contains details of all Financial Limits for approval, commitment and payment expenditure.

The actual financial limits that an individual with delegated authority has, are contained within the Scheme of Delegation form completed when the delegated authority is granted.

Research project grant claims will be in accordance with conditions stipulated by the awarding body.

Other project claims will be in accordance with conditions stipulated in the contract.

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12.5.4 Project Account Types and Restrictions of Use

Account Type When Account is Set Up Restrictions of UsePersonal Development (PD) Accounts

Member of staff elects to keep funds due to them within University rather than taking an additional payment to salary.

Only for assisting member of staff in their academic activities. All funds and purchases made from PD accounts are the property of the University.Account is unique to an individual.

Research (R) Accounts Research Grant has been awarded and completed paperwork has been received from Research, Innovation Services & Enterprise.

Only for activity agreed in the terms of the award.Account is unique to a project.

GCUC (K) Accounts Project of a commercial nature is to be undertaken and completed paperwork has been received from Research, Innovation Services & Enterprise.

Only for activity associated with the terms of the contract.Account is unique to a project.

GCU Academy (D) Accounts

Where there is provision of a ‘closed’ course that lead to a university qualification.

Only for activity associated with the terms of the contract.Account is unique to a project.

GCU NYC In. (N) Accounts

Where there is provision of a CPD course or town hall event.

Only for activity relating to the individual course.Account is unique to a project.

For further assistance in terms of project codes, Management Accounts can be contacted directly.

12.6 Finance Reports & Financial Discoverer

Reports showing transactions through accounts are available to Account Holders and specifically authorised personnel through the online reporting systems – Financial Discoverer.

Access to accounts through Financial Discoverer will be granted to account holders & other personnel specified within the Scheme of Delegation during the set up of a new account.

Access can be granted to additional users by completing a Financial Discoverer Access Form.

Users can access account information at any time of the month. Information retrieved for a current month can change before the end of the month. Finance will communicate via e-mail when processing for a period is complete so that account holders are aware of when figures retrieved through Financial Discoverer to that period will not change.

The Executive Board will receive monthly summary reports provided by the CFO.

Where a standard Financial Discoverer report does not provide the required information, Management Accounting should be contacted directly.

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12.7 Transfers & Coding Corrections

12.7.1 Budget Transfers (Virements)

Virement is the ability to transfer budget amounts between or within Cost Centres. Virements can only be exercised under the following circumstances:

Payroll Virement within Payroll Budget lines will be at the discretion of the appropriate individual as per the Scheme of Delegated Authority after agreed payroll saving target has been achieved.

Virement to 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.

Other CostsVirement within Other Costs Budget lines will be at the discretion of the appropriate individual as per the Scheme of Delegated Authority. The transfer of funds between Other Cost budget lines must be notified to Finance using a Budget Transfer Form.

Budget Holders must ensure that total Other Costs remains within the total Other Costs Budget at all times.

12.7.2 Expenditure Transfers

Expenditure Transfer Forms should be used to action transfers of expenditure between University Accounts. An example of usage would be the supply of computer consumables by Information Services to other departments.

Each department should hold a stock of Expenditure Transfer Forms, obtainable from the Management Accounts section of Finance.

Notes for Completion Department supplying the goods completes:

o Reference (REF) box. The cost centre supplying the goods should maintain a record of goods transferred from their cost centre by sequentially numbering transfers, and prefixing the number with a departmental reference. For example, EST 0001, PDS 0001 etc.

o Amounto Dateo Expenditure code to be creditedo Description

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Department receiving the goods completes:o Expenditure code to be chargedo Authorised by (must be appropriate signatory as per Scheme of Delegated

Authority)o Received by (must be signed by person who received the goods)

The various parts of the form should then be distributed as per the notes at the bottom of the form.

12.7.3 Correction of Miscoding

On checking any Financial Discoverer Report, the Account Holder should advise Management Accounting of any miscoding as soon as possible.

Management Accounting will take the appropriate action required to correct the miscoding.

12.8 Inventory Register

12.8.1 General

Schools and Professional Support Departments are responsible for all inventories under their control, for example computers, lab equipment, mobile phones, printers etc.

Only items with a value greater than £1,000 will normally be included on the Inventory Register. Groups of like items with similar description & value may be included as one item on the Register where the combined value of the group exceeds £1,000.

The University holds two inventory registers; Non-IT Inventory Register with Finance and the IT Inventory Register with Information Services. Both registers hold the following information for each item listed:

Owning Cost Centre Project Code (if applicable) Unique Tag Number Location Description Order Number Purchase Price Purchase Date Status of Item

Both Inventory Registers, and the items included within them, are subject to audit by various groups including Audit Committee, External Auditors, Internal Auditors and Finance staff.

Departments must designate a member of staff who will be their contact person.

12.8.2 Non-IT Inventory

Please refer to the Inventory Register Guide for more information regarding non-IT inventory procedures.

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Finance will use information from the Finance system to determine new items to be included on the Register.

Departments are responsible for attaching tags issued by Finance to the relevant items identified for inclusion on the Register.

All disposals of non-IT inventory must be informed in writing to Finance, authorised by the Head of Department.

All transfers of non-IT inventory must be informed in to Finance using an Internal Transfer of Inventory form.

12.8.3 IT Inventory

A separate policy is in place for IT Inventory.

Please refer to the IT Inventory Register Guide available from Information Services website or contact Information Services regarding IT inventory procedures.

13 INSURANCE

13.1 General

The University’s insurance is co-ordinated by the Department of Governance & Quality. There are a number of Policies in place covering Material Damage, Works in Progress, Business Interruption, Money, Casualty and Motor Engineering and Travel.

Theft - Insurance claims in excess of £5,000 are normally required to be supported by evidence of forced entry. Theft is excluded except where it involves forcible entry or exit from the premises except where entry is gained by the threat of or actual personal violence to any employee.

Damage – Insurance claims in excess of £5,000 require to be supported by a quotation for the cost of repair or replacement of the damaged item to return the item to a like for like state before the damage occurred.

Material Damage Policy Excess: There is an excess of £5,000 on this policy.

Insurance claims should be made through the Assistant Head (Governance) to our Insurers.

13.2 Procedures for Travel Insurance

Information relating to student visits/overseas placements and all staff travel should be forwarded to Finance prior to the visit taking place. It is essential to check that the placement provider has appropriate insurance cover in place prior to a student placement being agreed. Advice may be sought from the Assistant Head (Governance).

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13.2.1 Cover provided

“Whilst travelling anywhere in the world on business of the Insured (i.e. the University) and whilst travelling in the United Kingdom provided such travel involves an overnight stay away from home or normal place of business, or travel by aeroplane”.

Staff arranging student activities involving travel should make students aware of the insurance position.

Staff and students requiring Travel Insurance should complete the e-space Travel Insurance Declaration Form.

Once completed, the forms should be submitted electronically by e-mail to the Management Accounting team and on receipt staff and students will receive an automatic e-mail response with information on the travel policy number and claims procedure.

Please note that students travelling are:

Not covered for damage to accommodation Not covered for driving/hiring of transport

Staff involved in accidents abroad may be required to demonstrate that they have appropriate insurance cover therefore staff should ensure they are in possession of the above information.

Neither staff nor students are covered under the University insurance for any holiday time at either the beginning or the end of a business trip or placement.

Before travel, staff must consult the Travel Insurance Policy which is available on the Finance website and the Framework for Staff Working Overseas which is available on the People Services website. Staff and students should also comply with the travel guidance provided by the Foreign and Commonwealth Office website.

13.2.2 Request for claim form

Any member of staff or student requiring a Claim Form should contact the Assistant Head (Governance) on their return who will issue them with the appropriate form. On completion, the form must be returned to the Assistant Head (Governance) and not directly to the Insurance Company.

13.3 Use of Own Vehicle on University Business

Whilst the University has arrangements in place to provide staff required to drive on University business with a hired vehicle, there may be occasions where a member of staff chooses to use a private vehicle. There may also be circumstances where there may be no requirement to drive but a member of staff chooses to use their own private vehicle rather than take public transport.

The University’s Motor insurance policy does not provide cover for the use of private vehicles. Staff members using their own private vehicle for University business should notify their insurers and check that their private cover specifically includes “own business use”.

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14 SHORT TERM LOANS/HARDSHIP FUNDS/SAAS CHILDCARE

Applications for payments are made to the Student Funding Team who will process successful applications and pass them to Finance for payment. Application forms are obtained directly from the Student Funding Team, from the Base situated in the Saltire Centre or are available to download from the University website.

15 STOCK

15.1 Control

Schools and Professional Support Departments shall, where appropriate, be responsible for developing and maintaining a system for stock control and ensuring adequate security arrangements exist.

15.2 Stocktaking & pricing

Where a School or Professional Support Department holds stocks they must ensure that:

Stocktaking is carried out at regular intervals, and is certified by an appropriate individual as per the Scheme of Delegation.

On an annual basis the Schools and Professional Support Departments with stock will be asked to carry out a stock take and return a certified list of all stock as at the year-end date (31 July).

All obsolete, excess or scrap goods are identified and that appropriate action is taken to dispose of them.

Stocks are valued at lower of cost and net realisable value.

16 FINANCIAL STATEMENTS

16.1 Responsibilities

The financial year end of the University and its subsidiary companies is 31 July. The financial statements of the University are prepared in accordance with the Statement of Recommended Practice Accounting for Further & Higher Education (SORP) and in accordance with applicable accounting standards. The financial statements of all UK subsidiary companies are prepared in accordance with UK GAAP. The financial statements of GCU NYC Inc. are prepared in accordance with US GAAP.

The Chief Financial Officer is responsible for providing to the Finance & General Purposes Committee and Audit Committee, within an agreed timetable after the end of the financial year, consolidated financial statements for that year.

Audited consolidated financial statements shall be presented to the University Court and the Scottish Funding Council before 31 December following the end of the financial year. The financial statements of all UK subsidiary companies shall be lodged with Companies House before 31 December following the end of the financial year.

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16.2 Year end accounting returns

The Financial Accounting section on the Finance portal contains guidance specific to each financial year. The guidance aims to notify budget holders of the overall timetable and requirements for the preparation of the financial statements.

Each School and Professional Support Department shall, at dates to be specified in the timetable, submit to Finance:

All information necessary to finalise the posting of transactions relating to cost centres and projects in their Schools and Professional Support Departments.

If appropriate, a certified copy of the petty cash reconciliation as at the end of the financial year.

If appropriate, a copy of the certified stock list as at the end of the financial year.

17 AUDIT

17.1 Introduction

The Chief Financial Officer, authorised representatives and internal and external auditors shall have authority, on production of identification, to:

Enter, at all reasonable times, any University building. Have access to all records, documents and correspondence relating to any financial and

other appropriate transactions of the University. Require and receive such explanations as are necessary concerning any matter under

examination. Require any employee of the University to account for cash, stock or any other

University property under their control.

17.2 Irregularities

Any evidence or reasonable suspicion of any financial irregularity relating to funds, stock or other property of the University shall be reported immediately by the Chief Financial Officer or the Financial Controller. Such irregularities shall be dealt with in accordance with the Financial Misconduct Policy and with Section 11.4.

18 VALUE ADDED TAX

The University is regarded for VAT purposes as an “eligible body”.

VAT will be charged at the appropriate rate for all goods and services purchased by the University. Schools and Professional Support Departments are reminded to allow for VAT within costs when purchasing goods and services.

Schools and Professional Support Departments should charge VAT on goods and services provided, in appropriate circumstances (e.g. sale of equipment, consultancy and contract funded research work). They should consult Finance for guidance on VAT matters and for detailed guidance please refer to the VAT Manual.

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19 BUSINESS GIFTS & HOSPITALITY

No monetary reward or equivalent can be accepted from outside individuals or organisations, except for gifts with minimal value (for example, calendars or diaries).

Members of University Court and staff may accept meals and equivalent hospitality only in the normal course of business and only when the hospitality is of a reasonable level. Reasonableness should take into account the nature of the event, and the University representative should ensure the hospitality does not compromise them in any way. In general a meal and refreshment would be regarded as acceptable.

Should receipt of a substantial gift be unavoidable, its receipt should be reported to the Executive Board; the gift should then normally be recorded as University property or sold (the proceeds going into general University funds).

In addition, staff are not allowed to accept gifts from students of the University.

Members of Court and staff are required to record any gifts accepted in the central register, which is maintained by the Department of Governance & Quality.

When it is not easy to decide between what is acceptable in terms of gifts or hospitality, the offer should be declined or advice sought from senior management.

Personal inducements in any form from suppliers of goods and services to employees are forbidden.

The University is required to ensure that it is in compliance with the Bribery Act 2010. It is a corporate offence to fail to prevent bribery. Full guidance and information on the procedures that are in place are available from the Anti Bribery Policy http://www.gcu.ac.uk/gaq/regulationsandpolicies.

20 SUBSIDIARY COMPANIES

The procedures contained within this document and other financial documents, unless otherwise stated, apply to all subsidiary companies as far as is appropriate. This is with the exception of GCY NYC Inc. who has their own set of procedure documents to adhere to. In case of doubt contact the Financial Controller.

21 DISCLOSURE OF INTEREST

21.1 Conflicts of Interest with External Parties

Any member of the University Court or member of University staff having a personal, financial or other beneficial interest in any transaction between the University and third parties must disclose their interest to the relevant senior member of staff as appropriate.

When a member of staff becomes aware that a conflict of interest may arise in relation to any contract, requisition for purchase, or proposed payment by the University, this shall be reported promptly. A member of University Court or a University Committee must report such a conflict

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to the Chief Financial Officer. Any other member of University staff must report such a conflict to the relevant senior member of staff. Any requisitions of purchase should be annotated accordingly.

21.2 Conflicts of Interest with Internal Parties

Personal relationships between University staff members may invoke a conflict of interest. Any decision relating to University interests including authorisations are therefore required to be independent of the person requesting approval.

22 PRINCIPLES OF CONDUCT

Decisions must be taken solely in terms of the University’s interests. Personal relationships, friendships, family links or personal advantage must not influence decisions.

Similarly, members of staff must not place themselves under any financial or other obligation to outside individuals or organisations, which might influence them in the performance of their University duties. Any conflicts of interest in these respects must be declared to the relevant senior member of staff. Where the conflict of interest is judged to be material, an individual with such an interest may be asked to withdraw from the decision-making process.

Value for money must always be a prime criterion in any transaction. This does not mean, of course, that a product or service should be purchased only by reference to price; other factors, including quality and fitness for purpose, for example, are relevant considerations. For further guidance relating to Procurement refer to the Procurement Journey on the Procurement website.

All members of staff have a responsibility to protect the assets and integrity of the University, and are expected to take all reasonable steps to safeguard and protect the physical assets and other property of the University (including cash and equipment).

University equipment and other facilities should not be used for personal advantage, except as may be agreed by the relevant senior member of staff in accordance with policy and procedures in force (including, for example, policy on outside consultancies).

Guidance is not, and cannot be, all embracing. In the interest of maintaining the highest standards of public integrity and accountability it is for individuals to use their own good sense in applying the spirit of the guidance to circumstances in which they find themselves.

23 SECURITY

23.1 Responsibility

Schools and Professional Support Departments shall be responsible for maintaining proper security, custody and control of buildings, plant, materials, stock, furniture, equipment, cash etc within their jurisdiction. They shall consult the Chief Financial Officer in all matters where security is thought to be defective or where special arrangements are required.

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23.2 Safeguarding Assets

Individuals as per the Scheme of Delegated Authority are responsible for proper application of funds at the disposal of their Department. In exercising their delegated authority, individuals must have regard to security measures to safeguard University funds and other assets under their control against misuse or misappropriation.

Schools and Professional Support Departments shall ensure that proper procedures are in place to record the movement of all assets to and from the University.

23.3 Periodic Checks

Inventory records and equipment may be subject to periodic checks by Management, the Internal Auditor or any officer responsible for maintaining central inventory records.

23.4 Disposals and Losses

Any damage to, disposal or loss of an inventory item, shall be reported in writing by the School or Professional Support Department to the Financial Controller/Information Services as appropriate. See IT Inventory Register Guide and Non-IT Inventory Register Guide for more information.

23.5 Cash

Cash shall not be held in any location at the University other than those areas specifically approved by the Chief Financial Officer as detailed in Section 11.1.1.

Further, the Financial Controller shall ensure that adequate arrangements exist where cash is handled.

All transfers of cash within the University and between the University and the bank shall be in accordance with arrangements made by the Financial Controller and in line with the procedures set out in the Cash Handling and Banking Procedures.

24 ANTI BRIBERY ACT

The University is required to ensure that it is in compliance with the Bribery Act 2010. It is a corporate offence to fail to prevent bribery. Full guidance and information on the procedures that are in place are available from the Anti Bribery Policy http://www.gcu.ac.uk/gaq/regulationsandpolicies.

25 LOSSES

Any member of staff discovering, or suspecting a loss, shall refer the matter immediately to the Chief Financial Officer together with a written explanation of the circumstances.

The Chief Financial Officer shall investigate the matter without delay and identify the immediate remedial action required.

Any administrative weakness should be addressed as soon as possible.

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The Chief Financial Officer shall maintain a record of all losses reported, and shall have delegated authority to write off losses where appropriate. Where a loss exceeds £10,000, the matter shall be referred to the Principal and Vice-Chancellor and to both the Audit and the Finance and General Purposes Committee.

25.1 Frauds, Misappropriations & Criminal Activity

All instances of suspected financial fraud, misappropriations or any criminal offences in respect of University funds will be dealt with in line with the Financial Misconduct Policy.

The University is required to ensure that it is in compliance with the Bribery Act 2010. It is a corporate offence to fail to prevent bribery. Full guidance and information on the procedures that are in place are available from the Anti Bribery Policy http://www.gcu.ac.uk/gaq/regulationsandpolicies.

25.2 Special Payments

Claims or cases for special payments, which include compensation and/or ex gratia payments, shall be authorised in accordance with the limits in the Delegated Authority Policy.

26 MOBILE PHONES

26.1 Principles

A business case can be made for mobile phones where the following, but not exclusive, operational needs exist:

‘on-call’ duties outwith normal working hours; dealing with emergencies; or specific operational needs.

26.2 Procedures

A written case must be submitted to the Budget Holder stating the requirement of a mobile phone and those individuals who will be authorised to use it.

If approval is given, the member of staff should contact the Information Services Department, who will advise on appropriate technical and services specifications.

Staff will be required to make a contribution for any personal calls. The cost of personal calls should be estimated by the mobile user and notified to

Finance. It is acceptable to expand the estimate to cover a 3 or 12 month period and make the contribution on this basis.

27 MAIL

Finance mail is delivered directly by the Mail Room staff on a daily basis. All mail must be opened and stamped as received by a member of Finance staff.

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28 MANUAL JOURNALS

Manual journals processed in the financial system must be reviewed and approved by an authorised member of staff (senior to the preparer) prior to posting. It is crucial that all parts of the journal (Prepared by, Authorised by and Entered by…) have signatures against them. Once the journal has been posted to the financial system, it should be put in the tray for filing. Journals are kept in folders in numerical order.

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