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Financial and Legal Services Financial Regulations, Policies and Procedures

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E. Expenditure

E1 - General
E2 - Authority to Incur Expenditure
E3 - Purchasing Goods and Services
E4 - Contracts and Tenders
E5 - Capital Expenditure
E6 - Value for Money
E7 - Salaries, Wages and Fee Payments
E8 - Entertaining
E9 - Value Added Tax

E1 - General

E1.1     Director of Finance

The Director of Finance is responsible for making payments due by the University and must approve all payment procedures.

 

E2 - Authority to Incur Expenditure

E 2.1     No revenue or capital expenditure may be incurred by a head of department unless provision for such expenditure is included in the Annual Budget or has been additionally approved by the Executive or Director of Finance or is covered by a specific provision, from an external source, accepted formally on behalf of the University by an appropriately authorised officer. 

E 2.2     A head of department may incur revenue expenditure within the approved budget providing that the expenditure is made in accordance with Financial Regulations and Procedures.

 

E3 - Purchasing Goods and Services

E 3.1     Purchasing Policy

The head of department is responsible for purchases within his or her department.   Purchasing authority may be delegated to named individuals within the department.  In exercising this delegated authority, budget holders are required to observe the University’s Purchasing Procedures

The Director of Finance, or their nominee, shall maintain a register of authorised signatories and heads of departments must supply specimen signatures of those authorised to certify invoices for payment (for paper-based systems). A ‘sample signatory form’ can be found here.   The University’s electronic purchasing and payment system provides for the appropriate authorisation of expenditure within agreed approval limits. 

Any changes to the authorities to commit expenditure must be notified to the Director of Finance, or their nominee, immediately. 

Further guidance can be found in the University’s Purchasing Procedures.

 

E4 - Contracts and Tenders

All staff are expected to follow the current approval route for any activity they undertake (or are contemplating undertaking) which may include appropriate due diligence.

 

E 4.1     Tenders and Quotations

Heads of department and delegated budget holders must comply with the University’s tendering procedures contained in the University’s Purchasing Procedures.

 

E 4.2     Building works

Building contracts are the responsibility of the Finance and Resources Committee and are administered by the University’s Director of Finance.  Proposals will normally be initiated by the Director of Estates in respect of planned replacements, general improvement schemes, or space planning, or in response to requests from departments. 

Consultants may be appointed if the project is too large or too specialised for the University resources.  Appointments shall be subject to tendering and other procedures where appropriate. 

Purchase orders and contracts for building works involving construction, repair or maintenance must be processed through the Estates and Facilities Department.

 

E5 - Capital Expenditure

 

Capital expenditure up to £1 million can be approved by the Director of Finance and the Vice-Chancellor.  All projects between £1 million and £5 million are approved by the Finance and Resources Committee, and projects in excess of £5 million are approved by the Board of Governors. 

All capital expenditure on land, buildings, furniture, equipment and any associated costs may only be incurred if it is part of an approved Capital Budget, or agreed capital spend from a recurrent budget, and detailed procedures for such financial transactions are followed. 

When part of a capital project is funded by a grant, the grant claim process must be initialised before expenditure will be authorised. 

The Director of Finance is responsible for providing regular statements relating to all capital expenditure to the Finance and Resources Committee with an individual value in excess of £1 million.

 

E6 - Value for Money

It is a requirement of the Memorandum of Assurance and Accountability between HEFCE and Institutions that the University achieves value for money from public funds.  It should keep under review its arrangements for managing all the resources under its control, taking into account guidance on good practice issued from time to time by the funding body, the National Audit Office, the Public Accounts Committee or other relevant bodies. 

The University has a Value for Money Statement  and the simple principle that is applied to all of the University’s work is ‘to make the best use of the resources it has available in order to achieve the desired output and maximise the benefit achieved from that output’.

 

E7 - Salaries, Wages and Fee Payments

E 7.1     Director of Human Resources

The Director of Human Resources is responsible for determining the contractual arrangements relating to the payments of salaries, wages and other emoluments.  The Director of Human Resources is responsible for issuing all contracts of employment.  A contract should be set up by the Human Resources Department before any work is performed.

 

E 7.2     Director of Finance

The Director of Finance is responsible for ensuring that people are paid through the University payroll with tax and National Insurance Contributions deducted (where appropriate), except where satisfied that a contract of employment does not exist. The Director of Finance is also responsible for the maintenance of the related records, including those of a statutory nature. 

All payments must be made in accordance with the University’s detailed payroll financial procedures and comply with HM Revenue & Customs regulations.  Staff should be aware that the University could incur penalties for non-compliance with such regulations.  

The Director of Finance is responsible for issuing all contracts for services.

 

E 7.3     Terms and Conditions of Employment

All University staff will be appointed to the salary scales approved by the Board of Governors and in accordance with appropriate conditions of service.  All letters of appointment must be issued by the Human Resources Department.

 

E 7.4     Appointment of Staff and Workers

All contracts of employment and contracts for services shall be concluded in accordance with the University's approved practices and procedures and all offers of employment with the University shall be made in writing by the Director of Human Resources.  Managers shall ensure that the Director of Human Resources is provided promptly with all information he/she requires in connection with the appointment, resignation or dismissal of employees.

 

E 7.5     Pension schemes

The eligibility of staff for membership of the Teachers’ Pension Scheme (TPS), Local Government Pension Scheme (LGPS), or the University's Superannuation Scheme (USS) will be detailed in individual contracts of employment. 

The Board of Governors is responsible for undertaking the role of employer in relation to appropriate pension arrangements for employees.

 

E 7.6     Expenses

The University reimburses employees for certain specified items in accordance with HMRC guidelines.  The University’s Travel, Subsistence, and Other Expenses Policy sets out clear procedures and guidance. 

Claims for members of the Board of Governors will be authorised by the Registrar.  Claims for expenses will be based on demonstrable, out-of-pocket expenses, but only reasonable expenses can be reimbursed.

 

E 7.7     Overseas travel

All arrangements for overseas travel must be in accordance with the appropriate University policies and all staff travelling overseas will need to register with the Insurance travel system.  Any approvals required must be obtained in advance of committing the University to those arrangements or confirmation of any travel bookings.  Details for the reimbursement of expenses incurred on overseas business can be found in the University’s Travel Subsistence, and Other Expenses policy

 

E 7.8     Payroll Taxation

Responsibility for accounting for PAYE, National Insurance Contributions and any other taxes, and for making all statutory returns, rests with the Director of Finance.  Where payments for services rendered are made to individuals not employed by the University, the Director of Finance is responsible for maintaining any records required by the HM Revenue and Customs. 

The University has a dispensation from the HM Revenue and Customs to make expense payments to employees for certain specified items without deduction of income tax where these have been wholly, exclusively and necessarily incurred while on University business.  Reimbursement by the University of expenditure not included in the dispensation is prima-facie subject to the deduction of income tax before payment.  The Director of Finance, or their nominee, shall decide when income tax should be deducted from payments. 

 

E 7.9     Severance and other non-recurring payments

Severance payments shall only be made in accordance with relevant legislation and HEFCE guidance and under a scheme approved by the Board of Governors through the Finance and Human Resources Committee.  Professional advice should be obtained where necessary.  No amounts shall be expended which exceed the budget allocated for the purpose.  All such payments shall be authorised by the Vice-Chancellor and calculations checked by the Director of Human Resources or the Director of Finance.

All matters referred to an industrial tribunal shall be notified to the Finance and Human Resources Committee at the earliest opportunity in order that budget provision may be made as necessary.  All determinations of tribunals must be similarly notified.

 

E8 - Entertaining

Reasonable amounts of expenditure for hospitality and entertaining of third parties may be charged to University administered funds where necessarily incurred in the course of the University’s business.  The rules applying to expenditure when offering hospitality can be found in the University’s Travel, Subsistence, and Other Expenses Policy 

 

E9 - Value Added Tax

E 9.1     The University is registered for VAT.

 

E 9.2     Departments must confirm the Value Added Tax liability on research contracts and all other agreements with the Financial and Legal Services Tax Team

Article last updated: Friday, July 14, 2017

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