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Financial and Legal Services Financial Regulations, Policies and Procedures




List of Financial Policies and Procedures

The following is a list of the Financial Policies and Procedures that underpin the Financial Regulations and provide more guidance on how these Regulations will be implemented. These procedures are issued by the Director of Finance and are reviewed and updated on a regular basis. 


The following terms are among those found in the Financial Regulations, Procedures, and in financial reports generally.


Accounts comprise the income and expenditure account (including footnotes), the balance sheet, the cash flow statement and the statement of total recognised gains and losses. 

Audit Committee The committee with delegated responsibility from the Board of Governors for audit matters. 

Authorised Signatory is the member of staff committing funds for and on behalf of the University. 

Board of Governors The University’s Board of Governors is responsible for determining the educational character and mission of the University, for oversight of its activities and for the efficient use of resources. It appoints external auditors, safeguards the University’s assets and approves the annual estimates of income and expenditure. 

Budget (Revenue) is the annual allocation of funds to be spent on the operation of a department, inclusive of any under or overspends brought forward from previous years. 

Budget Holder Budget holder is the generic term for a person who holds devolved responsibility for a specific budget. 

Departments are the major budget centres in the University. They include academic departments and schools, administrative departments and self-financing centres. 

Director of Finance The person who is responsible for the day-to-day financial administration of the University. 

Directorate The committee composed of Members of the Executive and Deans of all the faculties. 

Employee is a person employed, whether part-time or full-time, by the University or a University Company under a contract of employment. 

Endowments are those endowments where the use of the capital and income, or only the income, is for the general purposes of the institution.  

Executive The committee responsible for policy implementation, organisation, operations, direction and management of the University. Members of the Executive are the Vice-Chancellor, Deputy Vice-Chancellors, Director of Finance, Registrar and other Executive Directors. 

Faculties are groupings of academic departments in related disciplines. 

Finance and Resources Committee The committee that considers, advises and makes appropriate recommendations to the Board of Governors on all aspects of both financial and resources strategy, including regulations, policies and procedures. It has authority to determine expenditure up to £5 million. 

Financial Administration includes the preparation of accounts, management information, monitoring and control of expenditure against budgets and all related financial operations. 

The Memorandum of Assurance and Accountability between HEFCE and Institutions sets out the terms and conditions for the payment of grant by HEFCE to the University. 

The Financial Procedures The Financial Procedures provide specific detail as to how the University’s Financial Regulations must be applied. 

The Financial Regulations The Financial Regulations are the rules by which the financial affairs of the University should be managed. 

Financial Statements comprise the report of the Board of Governors, the independent auditors’ report, the financial accounts, the statement of accounting policies, and the notes to the accounts. 

Financial Year The University’s accounting period commences 1 August and ends 31 July of the following year. 

Fixed Assets are those assets intended to be held for use on a continuing basis in the activities of the University, which are capitalised in accordance with the University’s agreed accounting policies. 

Head of Department A head of department is a head of an academic or administrative department. In the Financial Regulations and Financial Procedures, the term shall also apply to any head of any division or unit that has, for financial management purposes, the equivalent status of a department. 

HEFCE The Higher Education Funding Council for England is the Government body that supplies funding to higher education establishments. Under the Memorandum of Assurance and Accountability between HEFCE and Institutions, Executive Directors are responsible for ensuring that funds from HEFCE are used only in accordance with the Funding Council’s conditions. 

HEI Higher Education Institution. 

HMRC Her Majesty’s Revenue and Customs. 

Intellectual Property means (amongst others) all intellectual and proprietary works including all patents, know-how, trademarks, service marks, domain names, design rights, copyright (including all such rights in computer software and any databases), trade secrets, confidential information, moral rights, database rights, topography rights (in each case the full period thereof and all extensions and renewals thereof), all rights in any of the foregoing, applications for any of the foregoing and the right to apply for any of the foregoing in any part of the world and any similar rights situated in any country. 

Inventory Equipment is any items of plant, equipment, computers, etc. 

Investments (Endowment Asset) are those investments held for endowment funds where the income and/or the capital of the funds are required to be used for specific or general purposes of the institution as determined by the terms of the endowment. 

Provisions are amounts set aside as being reasonably necessary to provide for a liability or loss that is likely, or certain, to be incurred, but is uncertain as to amount or timing. 

Reserves are the accumulated surplus of income over expenditure, including unspent departmental allocations. Some reserves are ear-marked for specific purposes. 

Revaluation Reserve is the sum of unrealised amounts arising from the revaluation of the University’s assets. 

Staff Those individuals who have a contract of employment with the University. 

The University Within the scope of these regulations the term 'the University' refers to The Manchester Metropolitan University and its subsidiary undertakings. 

University Company is any company over which the University has control. 

VFM Value for money.

Vice-Chancellor The person with the ultimate executive responsibility for the organisation, direction and management of the University. The Vice-Chancellor is the Designated Officer as identified by the funding councils as set out in the Memorandum of Assurance and Accountability between HEFCE and Institutions.


The Seven Principles of Public Life


  1. Selflessness - Holders of public office should take decisions solely in terms of the public interest. They should not do so in order to gain financial or other material benefits for themselves, their family, or their friends.
  2. Integrity - Holders of public office should not place themselves under any financial or other obligation to outside individuals or organisations that might influence them in the performance of their official duties.
  3. Objectivity - In carrying out public business, including making public appointments, awarding contracts, or recommending individuals for rewards and benefits, holders of public office should make choices on merit.
  4. Accountability - Holders of public office are accountable for their decisions and actions to the public and must submit themselves to whatever scrutiny is appropriate to their office.
  5. Openness - Holders of public office should be as open as possible about all the decisions and actions that they take. They should give reasons for their decisions and restrict information only when the wider public interest clearly demands.
  6. Honesty - Holders of public office have a duty to declare any private interests relating to their public duties and to take steps to resolve any conflicts arising in a way that protects the public interest.
  7. Leadership - Holders of public office should promote and support these principles by leadership and example.


Source: Standards in Public Life: First Report of the Committee on Standards in Public Life (the Nolan Committee), 1995


Article last updated: Friday, October 30, 2015

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