Cambridge University Reporter Special

University of Cambridge Financial Regulations: Notice

The following Financial Regulations have been issued by the Council on the advice of the Finance Committee.

The purpose of these Financial Regulations is to ensure the proper use of finances and resources in a manner which not only satisfies the requirements of internal control expected of a substantial and prominent organization, but also fulfils any legal or financial obligations as laid down by the Statutes and Ordinances of the University, the Inland Revenue, HM Customs and Excise, the Higher Education Funding Council for England (HEFCE), and other authorities.

The Financial Regulations apply to all bodies included in the University's Financial Statements and includes all subsidiary companies. They have been circulated to all Heads of Department, Chairmen and Secretaries of Faculty Boards, Heads of institutions under the supervision of the Council, including the University Offices, and those designated as such for financial management and control purposes. It is the responsibility of Heads of all University institutions to ensure that staff under their jurisdiction are made aware of the existence and provisions of these Financial Regulations, and that an adequate number of copies are made available for reference within the institution. In particular they must ensure that all staff are made aware of the wider implications of not complying with the Financial Regulations.

Additional copies of the Financial Regulations may be obtained from the office of the Deputy Director of Finance (Financial Operations), Finance Division, University Offices, The Old Schools, who should also be contacted for advice if there is any uncertainty as to their application. The Financial Regulations are also available on the Division's Website (http://www.admin.cam.ac.uk/offices/finance/finregs.html).

Financial Regulations

1. Introduction

1.1 Purpose

This document contains the Financial Regulations as approved by the Council on the advice of the Finance Committee. The Financial Regulations apply to all financial business of the University of Cambridge, irrespective of the source of funding. The purpose of the Financial Regulations is to ensure the proper use of finances and resources in a manner which not only satisfies the requirements of internal control expected of a substantial and prominent organization, but also fulfils any legal or financial obligations as laid down by the Statutes and Ordinances, the Inland Revenue, HM Customs and Excise, the Higher Education Funding Council for England (HEFCE), and other authorities.

1.2 Application

(a) The Financial Regulations apply to all bodies included in the University's Financial Statements and includes all subsidiary companies. They apply to all business carried out by or on behalf of the University whether or not it is funded and, if funded, irrespective of the source of funding.

(b) The Financial Regulations do not apply to the Cambridge University Press or to the University of Cambridge Local Examinations Syndicate, which have their own financial regulations.

(c) These regulations are subordinate to the University's Statutes and Ordinances.

1.3 Responsibilities

(a) The Director of Finance is responsible for ensuring that copies of the Financial Regulations are available to all Heads of Department¹ and those designated as such for financial management and control purposes. It is the responsibility of all Heads of Departments (who may delegate financial responsibility within the Department (see 1.6 below) to ensure that staff under their jurisdiction are made aware of the existence and provisions of these Financial Regulations, and that an adequate number of copies are made available for reference within the Department. In particular Heads of Department must ensure that all staff are made aware of the implications of not complying with the Financial Regulations, where disciplinary action may be taken.

(b) Additional copies of these Financial Regulations may be obtained from the Deputy Director of Finance (Financial Operations) (website http://www.admin.cam.ac.uk/offices/finance), who should also be contacted for advice if there is any uncertainty as to their application. Annex 1 provides a list of contacts referred to within these Financial Regulations.

1.4 Compliance

Compliance with the Financial Regulations is a requirement for all University staff (irrespective of whether their appointment is financed by general University funds, research grants and contracts, or trust or other funds) and for all those not directly employed by the University who have responsibility for the administration or management of University funds.

1.5 Revision

Every three years, or more frequently if appropriate, the Director of Finance shall arrange for the Financial Regulations to be reviewed and for proposed changes to be submitted to the Finance Committee for onward recommendation to Council. The Director of Finance may however at any time submit such amendments or additions to these Financial Regulations as may be considered necessary.

1.6 Financial Responsibility within the University

(a) Subject to the Regent House, the Council is the principal executive and policy-making body of the University, with general responsibility for the administration of the University, for planning of its work, and for the management of its resources. To perform these responsibilities effectively, the Council delegate financial management to Heads of Departments, and other officers, whilst retaining ultimate responsibility. The Vice-Chancellor is the Designated Officer appointed by the Council in accordance with the University's Financial Memorandum with the Higher Education Funding Council for England (The Memorandum) and may be required to appear before the Public Accounts Committee on matters relating to Funding Council grants made to the University.

(b) Heads of Departments have responsibility for financial control within a Department, including maintenance of accounts, proper application of funds, and financial control over all expenditure. Heads of Department may delegate responsibility for financial management within their Department as appropriate, although the overall responsibility remains with the Head of Department. Such delegation must be in writing.

(c) The Council are responsible for ensuring that the University complies with the Memorandum and related guidance. HEFCE must be satisfied that the Council have:

appropriate arrangements for financial management and accounting;

a sound system of internal financial management and control;

delivered value for money from public funds; and

that the uses to which HEFCE funds are put are consistent with the purposes for which they were given.

(d) The Memorandum sets out detailed guidelines covering a number of areas referred to in these Financial Regulations; in such cases the Financial Regulations have been framed to incorporate the requirements of the Memorandum.

2. Ethical/Governance

2.1 Ethical Policy and Conduct

(a) University employees and others with responsibility for administration or management of University funds must not use their authority or office for personal gain and must always seek to uphold and enhance the standing of the University. Any personal interest which may impinge on an employee's impartiality in any matter relevant to his or her duties should be declared by the employee to the Head of Department or other appropriate authority, in accordance with the University's policy on registration and declaration of interests.

(b) With the exception of low value items such as a gift worth less than £25 or hospitality worth less than £50, employees must seek written permission from their Head of Department before accepting gifts or hospitality from suppliers or their agents dealing with the University. Under no circumstances must the receipt of gifts or hospitality influence the choice of supplier. If in doubt, gifts and hospitality should be refused or returned.

(c) All members of staff and students of the University have a general responsibility for the security of the University's property, for avoiding loss, and for being efficient in the use of resources. They must comply with the approved systems of financial controls for these Financial Regulations.

2.2 Audit

The University's audit arrangements are required to be in accordance with the HEFCE Audit Code of Practice. The Audit Committee has a number of specific duties, which are included within the Statutes and Ordinances. The Internal Auditors and External Auditors have unrestricted access to all records, assets, personnel, and premises, and they are authorized to obtain such information and explanations as are considered necessary by them. The University may, from time to time, be subject to audit by HEFCE, HM Customs and Excise, and other auditors.

2.3 Theft, Fraud, Irregularity, and Whistle-blowing

(a) Heads of Departments are responsible for safeguarding against fraud. A significant fraud or irregularity is one where the sums of money involved are in excess of £10,000, or the particulars of the event are unusual or complex, or there is likely to be public interest given the nature of the fraud. All matters involving significant fraud must be reported to the Audit Committee.

Any suspicion of theft, fraud, or financial irregularity should be notified immediately to the Director of Finance, who will advise Internal Audit. The University's Security Adviser and the police may be notified as appropriate. Departments should not take action without the approval of the Director of Finance. In cases which involve or may involve persons in statu pupillari (i.e. persons who have the status of a student), the Senior Proctor will also be informed at an early stage. Losses over £10,000 must be reported to the Vice-Chancellor who in turn must report to HEFCE, as part of the HEFCE requirements for notifying serious weaknesses, accounting breakdowns, and fraud. Such losses will also be reported to the Audit Committee.

(b) Any member of staff who has a reasonable belief that there is serious malpractice relating to certain protected matters as specified in the University's 'whistle-blowing' policy (see the Personnel Division website) should raise the concern using the specified procedure.

2.4 Accounting Records and Annual Financial Statements

(a) Heads of Departments are responsible for maintaining financial records as specified in the Statutes and Ordinances and are required to certify that annual statements of account (which are distributed by the Finance Division) are true and fair, and responsibilities under these regulations have been discharged during the year.

(b) Accounting Records: Heads of Departments to whom funds are entrusted shall ensure that all moneys under their control are safely kept and are used only for the purposes for which they are allocated and that all transactions are properly recorded in the University's central accounting system.

(c) University Financial System (UFS): All members of staff must comply with the rules laid down by the IT Syndicate and, where appropriate, those of the Management Information Services Division and University Computing Service. Heads of Departments are responsible for notifying the Management Information Services Division of any new users or leavers. Advice on these matters can be obtained from the Director of the Management Information Services Division. Working practices must also comply with the Data Protection Act 1998; advice on these matters may be obtained from the Data Protection Officer.

2.5 Consultancy

(a) Staff must not hold themselves out as acting on behalf of the University when undertaking personal consultancy work: for example staff undertaking personal consultancy work must not use University headed stationery. The University accepts no responsibility for work done or advice given in a personal capacity. Staff undertaking personal work, are reminded of the need to take out personal indemnity insurance and that they are responsible for any tax liabilities arising.

(b) Departments should ensure that appropriate charges are made for the use of University premises and facilities for non-University purposes. Refer to section 3.2 on charging.

2.6 University Companies

No University company may be set up to exploit any University-owned intellectual or other property or right unless approved by the Council. Advice must be obtained from the Director of Finance.

2.7 Commercial Activities

No non-University commercial activities may be carried out on University premises and no University facilities may be used for such activities, except for incidental use, unless the written permission of the Head of Department is given and a commercial agreement put in place, if appropriate. The Director of Finance will offer advice and must be consulted. The Director of the Estate Management and Building Service must be consulted in respect of granting of leases or licences for the use of University space.

3. Income

3.1 Allocations

(a) Each Head of a Department that receives or spends centrally allocated University funds is required before the start of each financial year to scrutinize and ratify estimates of recurrent expenditure (budgets) for the forthcoming financial year. The Head of the Department is required to notify its income and expenditure plans to the body (e.g. Council of School) to which it is responsible, before the start of the financial year to which the allocation applies.

(b) Heads of Departments are authorized to incur expenditure within the limits laid down in the annual Allocations. They are responsible for ensuring that monitoring and control arrangements are adequate to prevent over-commitment of expenditure. It is the responsibility of the Head of Department or budget holder (where delegated by the Head of Department) to approve expenditure and to ensure that budgets are not overspent. A Head of Department may devolve authority for expenditure up to a limit as specified in writing by the Head of Department.

(c) Departments are required to keep their expenditure within the resources available to them.

3.2 Income - General

(a) Heads of Departments that receive income from the sale of goods or services are responsible for establishing procedures to ensure that all sales are authorized and are made only to acceptable credit risks and all relevant legal risks considered. The University's standard terms and conditions of supply must be adopted where appropriate. In consideration of the 2003 Money Laundering regulations, Heads of Department must ensure, where payment is received in cash, that the sum must not exceed the cash equivalent of a15,000 (£9,000) for any single transaction concerning the sale of goods. Invoices must be prepared for all goods or services supplied and be properly recorded and processed. Procedures must also be in place to follow up overdue accounts effectively. In the event of prolonged (typically six months) non-payment or dispute, the Finance Division must be informed.

(b) Tax: The liability to tax of all goods and services supplied must be established and tax charged and accounted for as appropriate. When a new income-generating activity is set up, the Taxation Section of the Finance Division must be consulted beforehand to consider the VAT implications and whether the activity constitutes trading which might be subject to Corporation Tax. The Taxation Section may direct that the activity be channelled through a subsidiary company.

(c) Charging: The University is required by the Financial Memorandum between the University and HEFCE to assess the full cost to the University when determining the price to be charged for research contracts, residences, catering, conferences, and services to external customers, including consultancy. HEFCE requires the full cost to be recovered unless it is appropriate to do otherwise having regard to the particular circumstances. Heads of Departments are responsible for ensuring that charges make due allowance for overhead costs and that they are aware of the extent, if any, to which they subsidize the cost from departmental resources and can give justification for any subsidy. When research grants and contracts are costed, the University's policy on the charging of overheads must be followed. Advice is available from the Research Services Division (RSD).

(d) Sales to employees, members of the University, must be at a rate that covers the full cost to the University. If, exceptionally, this is not the case, the transaction must be approved in writing by the Head of Department. Any sales made at undervalue (including where no charge is made) to employees or their families must be recorded and reported as a taxable benefit at the end of the tax year.

(e) Heads of Departments must ensure that appropriate charges are made for the use of University premises and facilities for non-University purposes. Advice is available from the Estate Management and Building Service.

(f) Invoicing: Invoices must be raised in the name of the University of Cambridge showing the University's VAT number. Invoices must be raised through the UFS unless express dispensation is given by the Director of Finance. Invoices must be raised promptly (not more than one month subsequent to the transaction to which it relates) and must comply with the VAT regulations. Wherever possible, invoices must be raised in sterling for settlement in sterling. Where invoices are raised in a currency other than sterling, any exchange risk lies with the Department.

3.3 Donation, Special Accounts, Trust Funds, and Trading Accounts

(a) Departments must ensure that donation accounts and trust funds are maintained in credit, that funds are applied for charitable, educational, and research purposes only, and that any Ordinances or regulations governing the conduct of individual accounts are followed. Advice must be sought from the Taxation Section for new trading activities. Trading Accounts must be kept in credit and temporary deficits only permitted by agreement with the Director of Finance.

(b) Donation accounts must only be used for donations and are set up on the understanding that the funds belong to the University, not to a named individual. Transfers of funds to other institutions must always be approved by the Head of Department and be in accordance with the terms of the gift. Where it is the Head of Department who wishes to transfer funds to another institution, the Director of Finance's written approval must be obtained.

(c) All income and expenditure in the nature of research grants or contracts must be notified to Research Services Division and must not be transferred into donation accounts or other special funds. See also section 4.5 on entering into research-related contracts below.

(d) The University Trust Funds are governed by regulations set out in Statutes and Ordinances. Trust Fund Managers are responsible for ensuring that funds are used for proper purposes as detailed within the rules of the specific fund and within the scope of the University's general charitable purposes.

3.4 Cash and Banking Arrangements

(a) General: University income comprises all moneys receivable by the University, and all moneys made available to individuals on the basis of their association with the University. All University income must be paid into a University bank account and be properly accounted for, and all University expenditure must be paid from a University bank account. The opening of bank accounts that result in the diversion of any moneys receivable by the University is not permitted. Departments have no authority to open separate bank accounts for any activities without the express permission of the Director of Finance. All University bank accounts shall be in the name of the University.

(b) Each Head of Department that receives cash or cheques is responsible for establishing procedures to ensure that:

all receipts to which the Department is entitled are received;

all receipts including BACS receipts, are properly accounted for and recorded;

all receipts are banked intact within a week, or more often if sums exceeding £250 are received. Written dispensation from the Director of Finance is required for this limit to be increased or to change the frequency of banking and will only be given if it is operationally justified and to Departments with suitable security arrangements;

cash received is secure until banked and disbursements must not be made from cash received;

all cheques, postal orders, cash, etc., are promptly banked intact (i.e. complete). Cashing of personal cheques from cash takings/receipts is not permitted.

(c) All cheques received by Departments should be made payable to 'University of Cambridge'.

(d) The postal service and University Messenger Service must not be used to send cash. The custody and transit of moneys must be in accordance with insurance requirements. Remittance advices and financial coding details must accompany all receipts advised to either the Cashier in respect of centrally banked items, or the Cash Management Section of the Finance Division in respect of locally banked or electronic receipts. Departments are responsible for identification of their own BACS receipts. The Finance Division will assist by supplying relevant information.

(e) Petty Cash Arrangements: A petty cash float normally up to a maximum of £100, unless written permission is given by the Director of Finance to increase the limit, may be provided to Departments to defray minor expenses incurred by University employees on departmental activity.

(f) Departments are responsible for the security of the float and for ensuring that all expenditure is properly supported and authorized. Under no circumstances must petty cash be used to make payments to individuals for services provided (e.g. payments to visiting lecturers) or to external suppliers for services rendered. Departments are required to certify their petty cash float at the financial year-end. Advice on security of cash is available from the University Security Adviser. Petty cash floats must not be used for personal expenditure even if the intention is to reimburse the float later.

(g) Payments from petty cash shall be limited to items of expenditure below the cost of £25 unless the Director of Finance has given written dispensation to increase the limit, and must be supported by a receipted voucher and the claimant receiving reimbursement must sign for receipt of moneys. The member of staff responsible for the petty cash float must ensure the records are always up to date, including disbursements being input to UFS.

(h) Credit Cards: The Director of Finance must authorize every credit card facility prior to use by a Department. Cardholders must sign a statement explaining the terms and conditions for which any credit card can be used. The credit card must only be used for University business, it must be supported by vouchers for expenses incurred, and must be returned when an employee has left the University. Where the credit card is used for entertaining the conditions included in 4.3 below must be followed. Heads of Departments must follow University credit card procedures. Cash withdrawals using University credit cards are not permitted without express permission of the Director of Finance.

(i) Electronic Receipting Machines (PDQ machines): The Director of Finance must authorize any use of PDQ machines used for electronic receipts prior to use by a Department. The Finance Division will provide facilities for Departments where requested, explaining the circumstances in which the facilities are suitable. Departments will incur the cost of PDQ machine facilities.

(j) Internet based Receipting Facilities (e-PDQ): The Director of Finance must authorize any arrangements for receiving funds over the internet. The Finance Division will provide advice to Departments in this respect. Departments will incur the cost of e-PDQ facilities.

(k) Foreign Currency: Advice on foreign payments must be sought from the Head of Financial Transaction Processing and Control of the Finance Division, concerning both receipts and payments. Any bank charges and exchange rate differences will be a cost to the Department.

(l) Advice on cash and banking is available from the Head of Financial Transaction Processing and Control of the Finance Division.

3.5 The Amalgamated Fund

(a) The Investments Sub-Committee of the Finance Committee shall, on behalf of the Council, arrange for the investment of funds and endowments of the University. No Department or trust of the University may invest in any securities or other investments (including land and buildings) without the permission of the Finance Committee.

(b) The Director of Finance approves all new unit holders and changes in holdings to the Amalgamated Fund (a long-term investment fund). The Finance Committee through its Investments Sub-Committee approves the appointment of managers of investments and the investment powers of officers.

3.6 Deposit Account

The Deposit Account may be used to invest surplus funds. Deposits must not be made where the sources of funds are either in deficit or ineligible. Interest rates payable on deposits and eligible sources of funds will be set by the Director of Finance. Advice and written guidance is available from the Treasury and Investments Section of the Finance Division.

3.7 Taxation

(a) Heads of Departments must exercise all reasonable care in ensuring that their Department accounts correctly for VAT and where appropriate Corporation Tax. In certain cases, the Taxation Section may direct that transactions be channelled through University companies. Where there is any doubt as to the correct VAT or tax treatment of a transaction, the Taxation Section must be consulted. Advice on the deduction of Construction Industry Taxation (CIT) tax may be obtained from the Accounts Section of EMBS. A de minimis limit of £1,000 applies under the CIT.

(b) Heads of Departments have the responsibility for ensuring that any taxable benefits paid to individuals are reported to the Finance Division for inclusion in P11D returns. Advice is available from the Head of Payroll of the Finance Division.

3.8 Debt Collection and Write-Off/Settlement Procedures

(a) Debt Collection: With the exception of research grant claims, Departments are responsible for all aspects of credit control and for debt collection in respect of invoices issued to third parties. Heads of Departments must ensure that proper procedures are in place to monitor all debts and to follow up overdue accounts and must establish a provision for any debts considered irrecoverable. A debt is created whenever a credit sale is made, or any other obligation to pay money to the University arises. Advice must be sought from the Director of Finance where legal action to recover moneys due is considered. Formal consent to initiate legal action must be obtained from the Registrary before any legal action is taken.

(b) Write-Off/Settlement Procedures: Uncollectable debts will be an expense against the Department. The following authorities exist to write-off bad debts or for part settlement, where all reasonable steps have been taken to recover them. These authorities apply to all debts.

Debtors up to £5,000 - Head of Department to approve write-off.

Debtors of between £5,000 and £15,000 - Director of Finance to approve write-off.

Debtors over £15,000 - Finance Committee to approve write-off.

Any VAT included in bad debts that have been written off may be recovered using the procedures prescribed by HM Customs and Excise. The Taxation Section of the Finance Division must be informed of all write-offs of VAT invoices, as the VAT may be reclaimable.

The write-off will be actioned on the UFS by the Finance Division.

4. Expenditure

4.1 Expenditure

General

(a) Goods and services should be purchased externally only if they are required for the achievement of financial, academic, or organizational plans; they are not reasonably available elsewhere within the University; and sufficient funding exists.

(b) The purpose of the EU Directives is to encourage competitive tendering for public contracts throughout the European Union. Although the University declared itself outside the scope of the EU Regulations in December 2003, the Council agreed that the EU procedures should still be followed in order to maintain best purchasing practice and to meet any funding body grant conditions. In exceptional circumstances only, authorization not to follow the EU procedures may be granted by the Director of the Estate Management and Building Service (property and construction and related procurement) or the Director of Finance (all other procurement).

(c) Heads of Departments are responsible for establishing procedures to ensure that goods and services are ordered only in required quantities of suitable quality at the best terms available, after appropriate requisition and approval.

All staff involved in procurement must be aware of the content and comply with the direct instruction given in the Purchasing Policy - The University's Procurement Procedures, which can be found at:
http://www.admin.cam.ac.uk/offices/purchasing/guides/purchasing_policy.pdf

(d) This document provides the University's instructions and guidance on procurement matters. Where specific topics are not covered, the advice of the Central Purchasing Office (CPO) of the Finance Division must be sought.

For research grants where sponsors have their own equipment procurement procedures, Departments must seek advice from the CPO.

Obtaining competitive bids

(e) For many routine purchases, competitively tendered purchase agreements will be recommended by the CPO. There is no need to seek quotations when using them for low-value items (up to £500). Where no suitable purchase agreements are in place the following table gives the procedure that shall be followed to obtain appropriate competitive bids. At least three quotations are required.

Procedure Threshold Limits (before VAT)

University CPO Preferred Suppliers Other Suppliers

No quotes required up to £500 up to £100

Telephone quotes > £500 - £5,000 > £100 - £500

Fax /e-mail quotes > £5,000 - £25,000 > £500 - £5,000

Written quotes > £25,000 - £50,000 > £5,000 - £50,000

Tenders > £50,000 > £50,000

EU tender > £153,376* > £153,376*

* current at time of publication subject to bi-annual change

The Purchasing Policy provides essential definitions, instructions, and procedural guidance. Draft tender and quotation documents and instructions on receiving, opening, and recording bids are available from the CPO web site.

The thresholds relating to expenditure of more than £5,000 are mandatory, those below £5,000 are recommended, but may be varied at the Head of Department's discretion.

Ordering Procedures

(f) Official orders must be produced in a form approved by the Director of Finance for all purchases valued £100 or more unless the Head of Department has set a lower threshold.

(g) Authority to raise and to approve purchase orders shall be adequately segregated (see Invoice Processing below). Orders must state the nature, quantity, and price of goods and services to be provided, and refer to the application of the University's terms and conditions of purchase.

(h) Procurement projects valued in excess of £100,000 shall be carried out in consultation with the Head of Purchasing to ensure compliance with EU directives and any other relevant legal and contractual requirements. The penalties for non-compliance by the University may be severe and will be incurred by the Department.

Receipt of Goods

(i) All goods must be checked on receipt to ensure that they accord with order requirements. Copies of any signed delivery notes should be retained as evidence of receipt of goods. Unless the goods have been fully checked, any Goods Received Note must be endorsed 'received unchecked' before it is signed by the receiver and must be retained as part of the University's accounting records.

Invoice Processing

(j) Procedures must be in place to ensure that goods and services are properly ordered, received, and inspected as acceptable before invoices are authorized for payment. Invoices must be checked, recorded, and approved for payment by authorized signatories.

(k) Duties of staff should be segregated wherever possible so that persons involved in the ordering process are not responsible for invoice approval. Where only one member of staff is available, procedures for regular independent checks of transactions should be in place.

(l) Departments must ensure that invoices are processed for payment in accordance with the agreed payment terms, taking advantage of early settlement discounts where appropriate. Agreement from the Head of Treasury and Investments must be sought for payments exceeding £250,000 under early settlement terms. Payment before receipt of goods or services (pre-payment terms) must be made only on the advice of the Head of Purchasing.

(m) Payments in respect of employment must be made through the University payroll and not by other means. Advice is available from the Payroll Section of the Finance Division.

Authorization Procedures

(n) Heads of Departments are responsible for ensuring that appropriate levels of authorization are in place and that they provide adequate segregation of duties for payments within the Department. The list of authorized signatories must be kept up-to-date and made available to the Finance Division. Where the proposed authorized signatory is not a University employee, advice from the Head of Financial Transaction Processing and Control is recommended.

Cheques

(o) All cheques drawn on the University's account must bear the signature of the Director of Finance. Sterling cheques in excess of £10,000 must be counter-signed by a designated officer within the Finance Division who may require additional information. Separate signing arrangements within the Finance Division may be required for cheques denominated in foreign currency.

4.2 Travel and Subsistence: Claims for Reimbursement

(a) Travel and subsistence reimbursement claims must be made on University claim forms or other forms approved by the Director of Finance. Rates of reimbursement are set by the Finance Committee and notified to Departments by the Finance Division. Payments may only be made within these approved rates. Warrants for rail travel are available from the Head of Financial Transaction Processing and Control. The claims must be:

For the reimbursement of actual expenditure incurred on University business and be in accordance with the rates set by the Finance Committee.

Accompanied by supporting vouchers for the cost of accommodation, food, and other items of expenditure.

In respect of vehicles which are adequately insured where an owner's vehicle is being used for travel on University business.

Subsistence expenses will only be paid where the employee is required to be away from their normal place of work.

(b) The following conditions apply to travel and subsistence expenses:

Employees cannot be reimbursed for the cost of travel to and from their normal place of work otherwise than in exceptional circumstances, in which case approval by the Head of Department is required. Expense claims for employees' own mobile telephone calls and rental costs are not normally reimbursed. Advice is available from the Head of Payroll Section of the Finance Division.

No one shall authorize reimbursement of his or her own expenses. Claims should, whenever possible, be approved by an employee senior to the claimant. Where it is impractical for senior staff to authorize claims, the Head of Department can make appropriate alternative arrangements, which must be authorized in writing.

Advances may be granted at the discretion of the Head of Department and normally up to the estimated cost of one month's subsistence. Written requests for dispensation from the Director of Finance can be given for advances longer than one month's subsistence according to operational requirements. Requests for advances should be made on University expense claim forms giving details of dates and countries to be visited, and a breakdown of the advance required.

Claimants must submit full documentation promptly, and the process of accounting for the claims against advances must be completed within one month of the return date. Advances must not be outstanding for more than two months.

Departments are responsible for maintaining such records as are necessary for the completion of annual P11D returns for taxable benefits.

4.3 Entertaining

(a) Entertaining should wherever possible and appropriate be carried out in the University's own facilities in Departments or in Colleges.

(b) Entertainment expenditure must be an appropriate use of University money. A schedule must be included with the claim that gives details of those entertained, their institutions, and the purpose of the entertainment. A tax liability will arise where there are more employees than non-employees at an event. Such events must be disclosed on the annual P11D.

(c) Expense claims for entertaining, which must be supported by vouchers, must be authorized by the Head of the Department (except where the Head is the claimant, when alternative arrangements must be made). Authorization and submission of a claim for payment for entertaining is a declaration that the cost was incurred wholly, necessarily, and exclusively for University purposes.

(d) In authorizing entertainment expenditure, Heads of Departments are also undertaking that, if in any case tax is subsequently levied, any cost which is not recoverable from the individual beneficiaries will fall on the budget of the Department.

(e) Advice on such payments may be obtained from the Payroll Section of the Finance Division.

4.4 Salaries and Staff Appointments

(a) All University employees shall have a properly authorized letter of appointment whose form has been approved by, or under the authority of, the Personnel Committee.

(b) No member of staff may be given a contract of employment for a period exceeding that for which funding is available to support the post, or posts, to which he or she is appointed.

(c) The only payments which may be made to University employees are those in accordance with approved University salary scales and such other payments as have been specifically approved by the Personnel Committee.

(d) Heads of Departments that have staff paid through the University payroll must supply the Payroll Section with a Register of Authorized Signatures for the authorizing of salary documents. Each entry on the register must be signed or initialled by the Head of Department. The register shall be kept up to date. Where the proposed authorized signatory is not a University employee the approval of the Director of Finance is also required.

(e) For all new employees it is the responsibility of the Head of Department, or other authorized signatory to ensure that the person is legally eligible to work in the UK. The Payroll Section will not add a non-EU citizen to the payroll unless it is clear that any necessary work permit has been obtained or that the immigration status of the person concerned does not require the University to seek permission for the specific employment proposed.

(f) Any circulars issued by the Director of Finance on taxation or National Insurance matters must be complied with to ensure that the requirements of the Inland Revenue and Department of Social Security are met.

4.5 Authority for Entering into Contracts, including Research Activity

(a) Heads of Departments have authority to enter into contracts in the course of the ordinary business of their Department involving only the funds over which they have delegated control under the Statutes and Ordinances and regulations of the University, including these Financial Regulations. They do not have authority to enter into any contract which is illegal or which does not comply with obligations laid down by HEFCE, the Inland Revenue, HM Customs and Excise, and other government authorities or contracts relating to research and associated matters. Only the Director of the Research Services Division is authorized to enter into contracts relating to research funding. All applications for research funding and requests for contracts for research funding should be sent to the Research Services Division. Model contracts and details of how to apply for research funding can be found in the Research Collaboration Office section of the Research Services Division's website.

Specific funds may be used only for the purposes given. Heads of Departments do not have approval to enter into contracts concerning property or land (see section 5.3 below).

The Director of Finance can also advise when it is necessary to use the University's official seal for contracts.

(b) Heads of Departments may delegate in writing their authority to enter into contracts. Work on contracts should not usually commence before the contract is signed. Heads of Department are responsible for the safekeeping of contractual documentation. Departments will meet the cost of any losses from breaches of contract or other legal costs arising in respect of contracts entered into by the Head of Department.

(c) Heads of Departments should obtain the advice of the Director of Finance in the first instance if they are unsure of their authority to enter into a particular contract.

5. Assets/Liabilities

5.1 Stores

(a) Heads of Departments are responsible for keeping full, proper, and correct records of stock. A stocktake must be performed annually between 1 June and 31 July in addition to any regular interim stocktakes.

(b) Heads of Departments are responsible for establishing procedures to ensure that stock is ordered only in appropriate quantities of suitable quality at the best terms available, after appropriate requisition and approval. They are responsible for establishing procedures to ensure that stocks are adequately protected against loss, misuse, or obsolescence. Stocks of all items should be maintained at the minimum level required to support departmental requirements.

(c) Heads of Departments are responsible for ensuring that procedures are in place to account for all stock movements and the correct allocation to the appropriate user. Procedures should be in place to ensure that stockholdings are regularly reviewed for obsolete stock and in such cases obsolete stock should be disposed of at an appropriate time so to obtain the best value (normally expected to be market value) possible for the University.

(d) Departments must ensure that best value is obtained for the sale of any goods to external bodies or to staff. The University's Taxation Manager should be consulted for advice regarding the VAT and taxation implications.

(e) Goods should be valued during the year and the stock valuation (as reported to the Finance Division) at the lower of cost (UFS uses average cost which is equivalent 'cost') or net realizable value. Details of goods may be required by the Finance Division for inclusion in the year end accounts. Advice is available from the Financial Accounting section of the Finance Division.

5.2 Equipment

(a) Equipment (including Vehicles): Heads of Departments are responsible for establishing procedures to ensure that all items of equipment are adequately protected against loss and misuse and that all purchases and disposals of equipment are properly authorized, accounted for, and recorded. Departments must seek the advice of the Research Services Division in respect of equipment purchases under EU research contracts as specific rules may apply on the depreciation costs allocated to the grant.

(b) Equipment registers must be maintained (with a minimum requirement for all items greater than £750 in cost). The set-up of this can be delegated to the Finance Division by marking the relevant purchase invoices on UFS as 'track as asset' when the invoice is being processed.

(c) Assets bought by the University irrespective of the source of funding remain the property of the University until sold or destroyed, unless contracts with external sponsors specify otherwise.

(d) Any proceeds from the sale of equipment will usually be credited to the account of the Department concerned. The Finance Division must be informed of the details of equipment purchases or disposals (including irrecoverable VAT). Where equipment is loaned, Departments should have procedures in place to ensure that it is returned in good condition, and should consider the need for the borrower to arrange insurance cover.

(e) Departments must not enter into leasing or hire purchase lease contracts for equipment without taking the advice of the Director of Finance (see section 5.4 below) for transactions with a value over £10,000 over the term of the contract. The University's Taxation Manager should be consulted for advice regarding the VAT and taxation implications of asset acquisitions and disposals.

(f) Vehicles: University-owned vehicles may only be used by authorized personnel on University business. A record of authorized drivers should be maintained by the Department. University vehicles should not usually be used for travel to and from work and they should be left on University premises at night. Where the use of University vehicles is authorized for travel to and from work and they are not left on University premises at night, the employee of the University is likely to be taxed on the benefit enjoyed. Advice on insurance is available from the Insurance Section.

5.3 Property

(a) The University's real property is governed by regulations specified in the Statutes and Ordinances.

(b) Operational Property: The approval of the Council is needed for any purchase of land or property (whether freehold or leasehold) for the operational use of the University.

All contracts for the purchase of land or property (whether freehold or leasehold) and all sales of existing land and property must be effected by the University centrally on the authority of the Council, as set out in the Statutes and Ordinances.

(c) Non-Operational Property: The Council have responsibility for all real property that is not in use for the operational purposes of the University, for example for investment purposes, and may authorize the purchase, leasing, and sale of real property held for non-operational purposes on behalf of the University.

(d) A property register record is to be maintained by the Finance Division, and property and space registered by the Estate Management and Building Service.

The University's Taxation Section should be consulted for advice regarding the VAT and tax implications of property costs, acquisitions, disposals, and usage.

(e) The University estate is managed by the Estate Management and Building Service and advice on property matters must be obtained from the Director.

5.4 Borrowing and Guarantees

Departments must not borrow moneys from external sources. No guarantees or letters of comfort are to be issued except with the written approval of the Director of Finance. Advice on financing and guarantees is available from the Treasury and Investments Section of the Finance Division.

5.5 Intellectual Property

(a) Only the Technology Transfer Office is authorized to enter into contracts for the exploitation of University intellectual property.

(b) Revenue received by the University as a result of the exploitation of any item of intellectual property shall be distributed in accordance with the University's Intellectual Property Policy.

(c) Details of relevant University policy can be found on the Research Services Division website in the Technology Transfer Office section. Advice on intellectual property matters can be obtained from the Research Services Division.

5.6 Insurances and Risk Management

(a) The University is required by its Financial Memorandum with HEFCE to have adequate insurance cover. Insurances are the responsibility of the Insurance Section. Updates of insurance guidelines are published annually and are available from the Finance Division website. Departments must comply with the requirements set out.

(b) The University's insurance policy for its buildings requires Departments to notify the Insurance Section of high-value contents (items over £10,000), as additional insurance may be necessary. Such high-value items should also be recorded on the Department's fixed asset register.

(c) Departments and institutions must take all necessary steps to prevent losses and accidents and ensure that the Insurance Officer is advised immediately of any notifiable events for insurance purposes or contingent liabilities. No additional liabilities should be accepted voluntarily on behalf of the University without regard to the implications for insurance as they may not be covered, and third party claims must be passed to the Insurance Section without comment to the third party to ensure that the University's legal position is not compromised or its insurance policy violated.

ANNEX

LIST OF CONTACTS

Finance Division website address
http://www.admin.cam.ac.uk/offices/finance/intro.html

Central Purchasing Office website address
http://www.admin.cam.ac.uk/offices/purchasing

Research Services Division website address
http://www.admin.cam.ac.uk/offices/research

Director of Finance 32211

Deputy Director of Finance (Financial Operations) 64214

Financial Systems Operations Group - Head of Financial Systems 66609

Taxation Manager and Deputy Director of Finance 39661

Head of Treasury and Investments 32240

Trust Funds 32241

University Cashier 32223

Head of Payroll 39779

Central Purchasing Office 65100

Head of Financial Accounting 66747

Manager, Financial Accounting 32221

Head of Financial Transaction Processing and Control 66733

Internal Audit 36802

Director of Management Information Services Division 66533

Director of Research Services Division 66964

Head of Research Collaboration Office 65213

Director of Estate Management and Building Service 37806

Insurance Section 39659

University Security Adviser 32839

(a)	The Financial Regulations apply to all bodies included in the University's Financial Statements and includes all subsidiary companies. They apply to all business carried out by or on behalf of the University whether or not it is funded and, if funded, irrespective of the source of funding.
(b)	The Financial Regulations do not apply to the Cambridge University Press or to the University of Cambridge Local Examinations Syndicate, which have their own financial regulations.
(c)	These regulations are subordinate to the University's Statutes and Ordinances.

(a)	Subject to the Regent House, the Council is the principal executive and policy-making body of the University, with general responsibility for the administration of the University, for planning of its work, and for the management of its resources. To perform these responsibilities effectively, the Council delegate financial management to Heads of Departments, and other officers, whilst retaining ultimate responsibility. The Vice-Chancellor is the Designated Officer appointed by the Council in accordance with the University's Financial Memorandum with the Higher Education Funding Council for England (The Memorandum) and may be required to appear before the Public Accounts Committee on matters relating to Funding Council grants made to the University.
(b)	Heads of Departments have responsibility for financial control within a Department, including maintenance of accounts, proper application of funds, and financial control over all expenditure. Heads of Department may delegate responsibility for financial management within their Department as appropriate, although the overall responsibility remains with the Head of Department. Such delegation must be in writing.
(c)	The Council are responsible for ensuring that the University complies with the Memorandum and related guidance. HEFCE must be satisfied that the Council have: appropriate arrangements for financial management and accounting; a sound system of internal financial management and control; delivered value for money from public funds; and that the uses to which HEFCE funds are put are consistent with the purposes for which they were given.
(d)	The Memorandum sets out detailed guidelines covering a number of areas referred to in these Financial Regulations; in such cases the Financial Regulations have been framed to incorporate the requirements of the Memorandum.

(a)	University employees and others with responsibility for administration or management of University funds must not use their authority or office for personal gain and must always seek to uphold and enhance the standing of the University. Any personal interest which may impinge on an employee's impartiality in any matter relevant to his or her duties should be declared by the employee to the Head of Department or other appropriate authority, in accordance with the University's policy on registration and declaration of interests.
(b)	With the exception of low value items such as a gift worth less than £25 or hospitality worth less than £50, employees must seek written permission from their Head of Department before accepting gifts or hospitality from suppliers or their agents dealing with the University. Under no circumstances must the receipt of gifts or hospitality influence the choice of supplier. If in doubt, gifts and hospitality should be refused or returned.
(c)	All members of staff and students of the University have a general responsibility for the security of the University's property, for avoiding loss, and for being efficient in the use of resources. They must comply with the approved systems of financial controls for these Financial Regulations.

(a)	Heads of Departments are responsible for safeguarding against fraud. A significant fraud or irregularity is one where the sums of money involved are in excess of £10,000, or the particulars of the event are unusual or complex, or there is likely to be public interest given the nature of the fraud. All matters involving significant fraud must be reported to the Audit Committee.
	Any suspicion of theft, fraud, or financial irregularity should be notified immediately to the Director of Finance, who will advise Internal Audit. The University's Security Adviser and the police may be notified as appropriate. Departments should not take action without the approval of the Director of Finance. In cases which involve or may involve persons in statu pupillari (i.e. persons who have the status of a student), the Senior Proctor will also be informed at an early stage. Losses over £10,000 must be reported to the Vice-Chancellor who in turn must report to HEFCE, as part of the HEFCE requirements for notifying serious weaknesses, accounting breakdowns, and fraud. Such losses will also be reported to the Audit Committee.
(b)	Any member of staff who has a reasonable belief that there is serious malpractice relating to certain protected matters as specified in the University's 'whistle-blowing' policy (see the Personnel Division website) should raise the concern using the specified procedure.

(a)	Heads of Departments are responsible for maintaining financial records as specified in the Statutes and Ordinances and are required to certify that annual statements of account (which are distributed by the Finance Division) are true and fair, and responsibilities under these regulations have been discharged during the year.
(b)	Accounting Records: Heads of Departments to whom funds are entrusted shall ensure that all moneys under their control are safely kept and are used only for the purposes for which they are allocated and that all transactions are properly recorded in the University's central accounting system.
(c)	University Financial System (UFS): All members of staff must comply with the rules laid down by the IT Syndicate and, where appropriate, those of the Management Information Services Division and University Computing Service. Heads of Departments are responsible for notifying the Management Information Services Division of any new users or leavers. Advice on these matters can be obtained from the Director of the Management Information Services Division. Working practices must also comply with the Data Protection Act 1998; advice on these matters may be obtained from the Data Protection Officer.

(a)	Each Head of a Department that receives or spends centrally allocated University funds is required before the start of each financial year to scrutinize and ratify estimates of recurrent expenditure (budgets) for the forthcoming financial year. The Head of the Department is required to notify its income and expenditure plans to the body (e.g. Council of School) to which it is responsible, before the start of the financial year to which the allocation applies.
(b)	Heads of Departments are authorized to incur expenditure within the limits laid down in the annual Allocations. They are responsible for ensuring that monitoring and control arrangements are adequate to prevent over-commitment of expenditure. It is the responsibility of the Head of Department or budget holder (where delegated by the Head of Department) to approve expenditure and to ensure that budgets are not overspent. A Head of Department may devolve authority for expenditure up to a limit as specified in writing by the Head of Department.
(c)	Departments are required to keep their expenditure within the resources available to them.

(a)	Heads of Departments that receive income from the sale of goods or services are responsible for establishing procedures to ensure that all sales are authorized and are made only to acceptable credit risks and all relevant legal risks considered. The University's standard terms and conditions of supply must be adopted where appropriate. In consideration of the 2003 Money Laundering regulations, Heads of Department must ensure, where payment is received in cash, that the sum must not exceed the cash equivalent of a15,000 (£9,000) for any single transaction concerning the sale of goods. Invoices must be prepared for all goods or services supplied and be properly recorded and processed. Procedures must also be in place to follow up overdue accounts effectively. In the event of prolonged (typically six months) non-payment or dispute, the Finance Division must be informed.
(b)	Tax: The liability to tax of all goods and services supplied must be established and tax charged and accounted for as appropriate. When a new income-generating activity is set up, the Taxation Section of the Finance Division must be consulted beforehand to consider the VAT implications and whether the activity constitutes trading which might be subject to Corporation Tax. The Taxation Section may direct that the activity be channelled through a subsidiary company.
(c)	Charging: The University is required by the Financial Memorandum between the University and HEFCE to assess the full cost to the University when determining the price to be charged for research contracts, residences, catering, conferences, and services to external customers, including consultancy. HEFCE requires the full cost to be recovered unless it is appropriate to do otherwise having regard to the particular circumstances. Heads of Departments are responsible for ensuring that charges make due allowance for overhead costs and that they are aware of the extent, if any, to which they subsidize the cost from departmental resources and can give justification for any subsidy. When research grants and contracts are costed, the University's policy on the charging of overheads must be followed. Advice is available from the Research Services Division (RSD).
(d)	Sales to employees, members of the University, must be at a rate that covers the full cost to the University. If, exceptionally, this is not the case, the transaction must be approved in writing by the Head of Department. Any sales made at undervalue (including where no charge is made) to employees or their families must be recorded and reported as a taxable benefit at the end of the tax year.
(e)	Heads of Departments must ensure that appropriate charges are made for the use of University premises and facilities for non-University purposes. Advice is available from the Estate Management and Building Service.
(f)	Invoicing: Invoices must be raised in the name of the University of Cambridge showing the University's VAT number. Invoices must be raised through the UFS unless express dispensation is given by the Director of Finance. Invoices must be raised promptly (not more than one month subsequent to the transaction to which it relates) and must comply with the VAT regulations. Wherever possible, invoices must be raised in sterling for settlement in sterling. Where invoices are raised in a currency other than sterling, any exchange risk lies with the Department.

(a)	Departments must ensure that donation accounts and trust funds are maintained in credit, that funds are applied for charitable, educational, and research purposes only, and that any Ordinances or regulations governing the conduct of individual accounts are followed. Advice must be sought from the Taxation Section for new trading activities. Trading Accounts must be kept in credit and temporary deficits only permitted by agreement with the Director of Finance.
(b)	Donation accounts must only be used for donations and are set up on the understanding that the funds belong to the University, not to a named individual. Transfers of funds to other institutions must always be approved by the Head of Department and be in accordance with the terms of the gift. Where it is the Head of Department who wishes to transfer funds to another institution, the Director of Finance's written approval must be obtained.
(c)	All income and expenditure in the nature of research grants or contracts must be notified to Research Services Division and must not be transferred into donation accounts or other special funds. See also section 4.5 on entering into research-related contracts below.
(d)	The University Trust Funds are governed by regulations set out in Statutes and Ordinances. Trust Fund Managers are responsible for ensuring that funds are used for proper purposes as detailed within the rules of the specific fund and within the scope of the University's general charitable purposes.

(a)	General: University income comprises all moneys receivable by the University, and all moneys made available to individuals on the basis of their association with the University. All University income must be paid into a University bank account and be properly accounted for, and all University expenditure must be paid from a University bank account. The opening of bank accounts that result in the diversion of any moneys receivable by the University is not permitted. Departments have no authority to open separate bank accounts for any activities without the express permission of the Director of Finance. All University bank accounts shall be in the name of the University.
(b)	Each Head of Department that receives cash or cheques is responsible for establishing procedures to ensure that: all receipts to which the Department is entitled are received; all receipts including BACS receipts, are properly accounted for and recorded; all receipts are banked intact within a week, or more often if sums exceeding £250 are received. Written dispensation from the Director of Finance is required for this limit to be increased or to change the frequency of banking and will only be given if it is operationally justified and to Departments with suitable security arrangements; cash received is secure until banked and disbursements must not be made from cash received; all cheques, postal orders, cash, etc., are promptly banked intact (i.e. complete). Cashing of personal cheques from cash takings/receipts is not permitted.
(c)	All cheques received by Departments should be made payable to 'University of Cambridge'.
(d)	The postal service and University Messenger Service must not be used to send cash. The custody and transit of moneys must be in accordance with insurance requirements. Remittance advices and financial coding details must accompany all receipts advised to either the Cashier in respect of centrally banked items, or the Cash Management Section of the Finance Division in respect of locally banked or electronic receipts. Departments are responsible for identification of their own BACS receipts. The Finance Division will assist by supplying relevant information.
(e)	Petty Cash Arrangements: A petty cash float normally up to a maximum of £100, unless written permission is given by the Director of Finance to increase the limit, may be provided to Departments to defray minor expenses incurred by University employees on departmental activity.
(f)	Departments are responsible for the security of the float and for ensuring that all expenditure is properly supported and authorized. Under no circumstances must petty cash be used to make payments to individuals for services provided (e.g. payments to visiting lecturers) or to external suppliers for services rendered. Departments are required to certify their petty cash float at the financial year-end. Advice on security of cash is available from the University Security Adviser. Petty cash floats must not be used for personal expenditure even if the intention is to reimburse the float later.
(g)	Payments from petty cash shall be limited to items of expenditure below the cost of £25 unless the Director of Finance has given written dispensation to increase the limit, and must be supported by a receipted voucher and the claimant receiving reimbursement must sign for receipt of moneys. The member of staff responsible for the petty cash float must ensure the records are always up to date, including disbursements being input to UFS.
(h)	Credit Cards: The Director of Finance must authorize every credit card facility prior to use by a Department. Cardholders must sign a statement explaining the terms and conditions for which any credit card can be used. The credit card must only be used for University business, it must be supported by vouchers for expenses incurred, and must be returned when an employee has left the University. Where the credit card is used for entertaining the conditions included in 4.3 below must be followed. Heads of Departments must follow University credit card procedures. Cash withdrawals using University credit cards are not permitted without express permission of the Director of Finance.
(i)	Electronic Receipting Machines (PDQ machines): The Director of Finance must authorize any use of PDQ machines used for electronic receipts prior to use by a Department. The Finance Division will provide facilities for Departments where requested, explaining the circumstances in which the facilities are suitable. Departments will incur the cost of PDQ machine facilities.
(j)	Internet based Receipting Facilities (e-PDQ): The Director of Finance must authorize any arrangements for receiving funds over the internet. The Finance Division will provide advice to Departments in this respect. Departments will incur the cost of e-PDQ facilities.
(k)	Foreign Currency: Advice on foreign payments must be sought from the Head of Financial Transaction Processing and Control of the Finance Division, concerning both receipts and payments. Any bank charges and exchange rate differences will be a cost to the Department.
(l)	Advice on cash and banking is available from the Head of Financial Transaction Processing and Control of the Finance Division.

(a)	The Investments Sub-Committee of the Finance Committee shall, on behalf of the Council, arrange for the investment of funds and endowments of the University. No Department or trust of the University may invest in any securities or other investments (including land and buildings) without the permission of the Finance Committee.
(b)	The Director of Finance approves all new unit holders and changes in holdings to the Amalgamated Fund (a long-term investment fund). The Finance Committee through its Investments Sub-Committee approves the appointment of managers of investments and the investment powers of officers.

(a)	Goods and services should be purchased externally only if they are required for the achievement of financial, academic, or organizational plans; they are not reasonably available elsewhere within the University; and sufficient funding exists.
(b)	The purpose of the EU Directives is to encourage competitive tendering for public contracts throughout the European Union. Although the University declared itself outside the scope of the EU Regulations in December 2003, the Council agreed that the EU procedures should still be followed in order to maintain best purchasing practice and to meet any funding body grant conditions. In exceptional circumstances only, authorization not to follow the EU procedures may be granted by the Director of the Estate Management and Building Service (property and construction and related procurement) or the Director of Finance (all other procurement).
(c)	Heads of Departments are responsible for establishing procedures to ensure that goods and services are ordered only in required quantities of suitable quality at the best terms available, after appropriate requisition and approval.
	All staff involved in procurement must be aware of the content and comply with the direct instruction given in the Purchasing Policy - The University's Procurement Procedures, which can be found at: http://www.admin.cam.ac.uk/offices/purchasing/guides/purchasing_policy.pdf
(d)	This document provides the University's instructions and guidance on procurement matters. Where specific topics are not covered, the advice of the Central Purchasing Office (CPO) of the Finance Division must be sought.
	For research grants where sponsors have their own equipment procurement procedures, Departments must seek advice from the CPO.

Procedure	Threshold Limits (before VAT)
	University CPO Preferred Suppliers		Other Suppliers
No quotes required		up to £500		up to £100
Telephone quotes	>	£500 - £5,000	>	£100 - £500
Fax /e-mail quotes	>	£5,000 - £25,000	>	£500 - £5,000
Written quotes	>	£25,000 - £50,000	>	£5,000 - £50,000
Tenders	>	£50,000	>	£50,000
EU tender	>	£153,376*	>	£153,376*
* current at time of publication subject to bi-annual change

	The Purchasing Policy provides essential definitions, instructions, and procedural guidance. Draft tender and quotation documents and instructions on receiving, opening, and recording bids are available from the CPO web site.
	The thresholds relating to expenditure of more than £5,000 are mandatory, those below £5,000 are recommended, but may be varied at the Head of Department's discretion.

(f)	Official orders must be produced in a form approved by the Director of Finance for all purchases valued £100 or more unless the Head of Department has set a lower threshold.
(g)	Authority to raise and to approve purchase orders shall be adequately segregated (see Invoice Processing below). Orders must state the nature, quantity, and price of goods and services to be provided, and refer to the application of the University's terms and conditions of purchase.
(h)	Procurement projects valued in excess of £100,000 shall be carried out in consultation with the Head of Purchasing to ensure compliance with EU directives and any other relevant legal and contractual requirements. The penalties for non-compliance by the University may be severe and will be incurred by the Department.

(j)	Procedures must be in place to ensure that goods and services are properly ordered, received, and inspected as acceptable before invoices are authorized for payment. Invoices must be checked, recorded, and approved for payment by authorized signatories.
(k)	Duties of staff should be segregated wherever possible so that persons involved in the ordering process are not responsible for invoice approval. Where only one member of staff is available, procedures for regular independent checks of transactions should be in place.
(l)	Departments must ensure that invoices are processed for payment in accordance with the agreed payment terms, taking advantage of early settlement discounts where appropriate. Agreement from the Head of Treasury and Investments must be sought for payments exceeding £250,000 under early settlement terms. Payment before receipt of goods or services (pre-payment terms) must be made only on the advice of the Head of Purchasing.
(m)	Payments in respect of employment must be made through the University payroll and not by other means. Advice is available from the Payroll Section of the Finance Division.

(a)	Entertaining should wherever possible and appropriate be carried out in the University's own facilities in Departments or in Colleges.
(b)	Entertainment expenditure must be an appropriate use of University money. A schedule must be included with the claim that gives details of those entertained, their institutions, and the purpose of the entertainment. A tax liability will arise where there are more employees than non-employees at an event. Such events must be disclosed on the annual P11D.
(c)	Expense claims for entertaining, which must be supported by vouchers, must be authorized by the Head of the Department (except where the Head is the claimant, when alternative arrangements must be made). Authorization and submission of a claim for payment for entertaining is a declaration that the cost was incurred wholly, necessarily, and exclusively for University purposes.
(d)	In authorizing entertainment expenditure, Heads of Departments are also undertaking that, if in any case tax is subsequently levied, any cost which is not recoverable from the individual beneficiaries will fall on the budget of the Department.
(e)	Advice on such payments may be obtained from the Payroll Section of the Finance Division.

(a)	All University employees shall have a properly authorized letter of appointment whose form has been approved by, or under the authority of, the Personnel Committee.
(b)	No member of staff may be given a contract of employment for a period exceeding that for which funding is available to support the post, or posts, to which he or she is appointed.
(c)	The only payments which may be made to University employees are those in accordance with approved University salary scales and such other payments as have been specifically approved by the Personnel Committee.
(d)	Heads of Departments that have staff paid through the University payroll must supply the Payroll Section with a Register of Authorized Signatures for the authorizing of salary documents. Each entry on the register must be signed or initialled by the Head of Department. The register shall be kept up to date. Where the proposed authorized signatory is not a University employee the approval of the Director of Finance is also required.
(e)	For all new employees it is the responsibility of the Head of Department, or other authorized signatory to ensure that the person is legally eligible to work in the UK. The Payroll Section will not add a non-EU citizen to the payroll unless it is clear that any necessary work permit has been obtained or that the immigration status of the person concerned does not require the University to seek permission for the specific employment proposed.
(f)	Any circulars issued by the Director of Finance on taxation or National Insurance matters must be complied with to ensure that the requirements of the Inland Revenue and Department of Social Security are met.

(a)	Heads of Departments have authority to enter into contracts in the course of the ordinary business of their Department involving only the funds over which they have delegated control under the Statutes and Ordinances and regulations of the University, including these Financial Regulations. They do not have authority to enter into any contract which is illegal or which does not comply with obligations laid down by HEFCE, the Inland Revenue, HM Customs and Excise, and other government authorities or contracts relating to research and associated matters. Only the Director of the Research Services Division is authorized to enter into contracts relating to research funding. All applications for research funding and requests for contracts for research funding should be sent to the Research Services Division. Model contracts and details of how to apply for research funding can be found in the Research Collaboration Office section of the Research Services Division's website.
	Specific funds may be used only for the purposes given. Heads of Departments do not have approval to enter into contracts concerning property or land (see section 5.3 below).
	The Director of Finance can also advise when it is necessary to use the University's official seal for contracts.
(b)	Heads of Departments may delegate in writing their authority to enter into contracts. Work on contracts should not usually commence before the contract is signed. Heads of Department are responsible for the safekeeping of contractual documentation. Departments will meet the cost of any losses from breaches of contract or other legal costs arising in respect of contracts entered into by the Head of Department.
(c)	Heads of Departments should obtain the advice of the Director of Finance in the first instance if they are unsure of their authority to enter into a particular contract.

(a)	Equipment (including Vehicles): Heads of Departments are responsible for establishing procedures to ensure that all items of equipment are adequately protected against loss and misuse and that all purchases and disposals of equipment are properly authorized, accounted for, and recorded. Departments must seek the advice of the Research Services Division in respect of equipment purchases under EU research contracts as specific rules may apply on the depreciation costs allocated to the grant.
(b)	Equipment registers must be maintained (with a minimum requirement for all items greater than £750 in cost). The set-up of this can be delegated to the Finance Division by marking the relevant purchase invoices on UFS as 'track as asset' when the invoice is being processed.
(c)	Assets bought by the University irrespective of the source of funding remain the property of the University until sold or destroyed, unless contracts with external sponsors specify otherwise.
(d)	Any proceeds from the sale of equipment will usually be credited to the account of the Department concerned. The Finance Division must be informed of the details of equipment purchases or disposals (including irrecoverable VAT). Where equipment is loaned, Departments should have procedures in place to ensure that it is returned in good condition, and should consider the need for the borrower to arrange insurance cover.
(e)	Departments must not enter into leasing or hire purchase lease contracts for equipment without taking the advice of the Director of Finance (see section 5.4 below) for transactions with a value over £10,000 over the term of the contract. The University's Taxation Manager should be consulted for advice regarding the VAT and taxation implications of asset acquisitions and disposals.
(f)	Vehicles: University-owned vehicles may only be used by authorized personnel on University business. A record of authorized drivers should be maintained by the Department. University vehicles should not usually be used for travel to and from work and they should be left on University premises at night. Where the use of University vehicles is authorized for travel to and from work and they are not left on University premises at night, the employee of the University is likely to be taxed on the benefit enjoyed. Advice on insurance is available from the Insurance Section.

(a)	The University's real property is governed by regulations specified in the Statutes and Ordinances.
(b)	Operational Property: The approval of the Council is needed for any purchase of land or property (whether freehold or leasehold) for the operational use of the University.
	All contracts for the purchase of land or property (whether freehold or leasehold) and all sales of existing land and property must be effected by the University centrally on the authority of the Council, as set out in the Statutes and Ordinances.
(c)	Non-Operational Property: The Council have responsibility for all real property that is not in use for the operational purposes of the University, for example for investment purposes, and may authorize the purchase, leasing, and sale of real property held for non-operational purposes on behalf of the University.
(d)	A property register record is to be maintained by the Finance Division, and property and space registered by the Estate Management and Building Service.
	The University's Taxation Section should be consulted for advice regarding the VAT and tax implications of property costs, acquisitions, disposals, and usage.
(e)	The University estate is managed by the Estate Management and Building Service and advice on property matters must be obtained from the Director.

(a)	Only the Technology Transfer Office is authorized to enter into contracts for the exploitation of University intellectual property.
(b)	Revenue received by the University as a result of the exploitation of any item of intellectual property shall be distributed in accordance with the University's Intellectual Property Policy.
(c)	Details of relevant University policy can be found on the Research Services Division website in the Technology Transfer Office section. Advice on intellectual property matters can be obtained from the Research Services Division.

(a)	The University is required by its Financial Memorandum with HEFCE to have adequate insurance cover. Insurances are the responsibility of the Insurance Section. Updates of insurance guidelines are published annually and are available from the Finance Division website. Departments must comply with the requirements set out.
(b)	The University's insurance policy for its buildings requires Departments to notify the Insurance Section of high-value contents (items over £10,000), as additional insurance may be necessary. Such high-value items should also be recorded on the Department's fixed asset register.
(c)	Departments and institutions must take all necessary steps to prevent losses and accidents and ensure that the Insurance Officer is advised immediately of any notifiable events for insurance purposes or contingent liabilities. No additional liabilities should be accepted voluntarily on behalf of the University without regard to the implications for insurance as they may not be covered, and third party claims must be passed to the Insurance Section without comment to the third party to ensure that the University's legal position is not compromised or its insurance policy violated.

Director of Finance	32211
Deputy Director of Finance (Financial Operations)	64214
Financial Systems Operations Group - Head of Financial Systems	66609
Taxation Manager and Deputy Director of Finance	39661
Head of Treasury and Investments	32240
Trust Funds	32241
University Cashier	32223
Head of Payroll	39779
Central Purchasing Office	65100
Head of Financial Accounting	66747
Manager, Financial Accounting	32221
Head of Financial Transaction Processing and Control	66733
Internal Audit	36802

Director of Management Information Services Division	66533
Director of Research Services Division	66964
Head of Research Collaboration Office	65213
Director of Estate Management and Building Service	37806
Insurance Section	39659
University Security Adviser	32839