Cambridge University Reporter


University of Cambridge Financial Regulations: Notice

21 July 2008

The following Financial Regulations have been issued by the Council on the advice of the Finance Committee. These replace the Regulations published on p. 925 of the Statutes and Ordinances.

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, HM Revenue and Customs, 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 except for Cambridge University Press and Cambridge Assessment. 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

Adopted and approved on 21 July 2008 by the Council after consultation with the Finance Committee

Distributed by the Director of Finance to all Heads of Department

Summary of changes

The existing Regulations have been reorganized to make them clearer and easier to navigate and so improve compliance. Links to Statutes and Ordinances have been articulated where helpful.

The revision of the Financial Regulations identified areas which are not covered and should be (see the table below). It should make it easier to update the Regulations in the future in the light of emerging best practice or problems identified for example via internal audit activity.

Regulation
no. New material/comment Reason
2.1 Inclusion of Nolan Principles. To implement the statement in the University's Corporate Governance Statement, annexed to the University's Annual Reports and Financial Statements. Supported by hospitality and conflicts of interest guidance in subsequent sub-paragraphs.
2.2/3 Conflicts of interest. This paragraph builds on drafting in the existing Regulation 2.1(a) by making it a requirement
  • (not guidance) that personal interests be declared
  • general (i.e. not as in the current Regulations that declarations have to be made only when required by University policy on registration and declaration of interests)
  • which extends to Heads of Department (now broadly defined in Regulation 4.1)
  • that staff have to act in accordance with the instructions of the person or body to whom the declaration is made.
Note there is currently no unified University conflicts of interest or ethical policies; these have been under consideration for some time and remain so.
3.1 Staff duties summarized in one place (new emphases: take all necessary advice, seek value for money, and comply with University legal and other obligations). Risk management highlighted as a primary duty for all staff in relation to all University business. Risk management currently only dealt with in the regulation re insurance that Departments and institutions must take all necessary steps to prevent losses and accidents.
4 and 5 Head of Department duties summarized. Provisions stop short of delegation.
6.3 RSD execution of research contracts retained.  
6.5 Execution of contracts affecting more than one Department.  
7 Authority for sealing is delegated by the Council to specified University officers.  
8.1 Responsibilities for safekeeping contract documentation clarified.  
8.3 Clearer guidance on when contract performance may start before contract finalized.  
13 Respective responsibilities of Heads of Department and RSD set out. Research grant applications, etc. to be sent to RSD prior to despatch. Spending of research grant money is explicitly made subject to Financial Regulations. Need to achieve University recovery rate is referenced.  
18.1 Need for PRC approval is noted for expenditure of £2m or above on capital.  
18.2 Purchasing thresholds updated. (Applicable to construction contracts as well as other purchasing.) Specification is required for all purchasing, based on user consultation and risk assessment. Made clear that the rules apply to all purchases, irrespective of the source of funding.  
18.3 Exemption route for purchases under the EC threshold (as well as above it). There is currently no means of exempting purchasing below the EU threshold, even if justified on the facts.
18.4 Requirements to seek Director of Finance advice in relation to purchasing summarized in one place and clarified. New flexibility to allow Heads of Department to authorize prepayments of less than £10,000.  
19.4 Monitoring and appraisal of purchasing activity.  
22 The authority for legal proceedings is addressed. The current drafting in Regulation 3.8(a) relates to debt collection only.
23 Guidance on notifying contents for insurance updated.  
24.2 Taxation section to have stronger right to direct that transactions are channelled through subsidiaries.  
25 University companies. Controls included on establishment of University companies. Applicability of Financial Regulations to subsidiary companies is clarified.
26 Embedded companies. To implement in Financial Regulations the relevant part of the Internal Audit report.
27 Consultancy and other private activity. Guidance clarified and strengthened.
29 Keying into the IPR Ordinance.  
Section M Explanatory Note. To provide necessary context. This is located at the end of the document so that the reader's attention is not diverted from the main messages which have been located in the first paragraphs. Some of this material is drawn from the current Financial Regulations. Other matters are included so that the lines of authority in financial matters are made as clear as possible.

A. Preliminary

Terms in capitals are defined in Schedule 5 where necessary to aid interpretation.

The Council is responsible for the supervision and management of University resources and finances. The purpose of these Regulations is to provide sound arrangements for internal financial management, accounting, and control, promote best value for money, and fulfil the University's legal and financial obligations.

1. Scope

1.1. These Regulations apply to

2. Ethical Principles

2.1. University Business shall be conducted in accordance with the Nolan Principles: selflessness, integrity, objectivity, accountability, openness, honesty, and leadership.

2.2. Staff must not use their authority or office for personal gain and must always seek to uphold and enhance the standing of the University.

2.3. Staff must declare to their Head of Department any personal interest which may affect any University Business and act in accordance with the instructions given as to management of any conflict.

2.4. Staff must seek written permission from their Head of Department before accepting gifts or hospitality directly or indirectly from suppliers, other than low value items such as a gift worth less than £25 or hospitality worth less than £50. Receipt of gifts or hospitality must not influence or appear to influence the choice of supplier or prejudice the University's reputation. If in doubt, gifts and hospitality must be refused.

2.5. Where Heads of Department have a conflict of interest or wish to accept gifts or hospitality (other than low value items) they must seek the advice of the body or person to whom they are responsible, for example Head of School, management board or General Board, and act as advised.

3. Staff Responsibilities

3.1. Staff shall, irrespective of sources of funding,

3.2. Non-observance of these Regulations may result in disciplinary action.

B. HEADS OF DEPARTMENT

4. Definition and Responsibility

4.1. 'Head of Department' means any of the following: the Head of a Department or a Faculty not organized in Departments, Secretaries of Faculties, Head of a Centre, Institute or other body under the supervision of the General Board or Council and Head of a Division within the Unified Administrative Service. 'Department' is interpreted accordingly.

4.2. Heads of Department shall ensure

5. Departmental Management

5.1. Heads of Department may designate in writing one or more people to execute specified tasks for and subject to the supervision of the Head of Department. The Head of Department remains responsible.

C. CONTRACT EXECUTION AND COMMENCEMENT

6. Authority to Sign Contracts

6.1. Subject to Regulations 6.2, 6.3, and 18.4, Heads of Departments have authority to sign contracts in the course of the ordinary business of their Department in respect only of available funds for which they are responsible.

6.2. Contracts for the purchase, lease or licence of land or property or for the erection, demolition, substantial repair or alteration of buildings must be referred to EMBS and are subject to the Sites and Buildings Regulations (see further Regulation 31 and Explanatory Note in Section M).

6.3. The Director of RSD shall approve and sign all contracts relating to sponsored research activity.

6.4. Subject to Regulations 6.2 and 6.3 the following persons have authority to sign contracts affecting more than one Department:

7. Sealing

7.1. The following persons have authority to authorize affixing of the University's seal, where any necessary approvals are in place

8. Documentation, Liability, and Performance

8.1. The person having authority to execute a contract is responsible for its safekeeping. If required, the Registrary will keep the documentation for contracts affecting more than one Department.

8.2. Departments are responsible for meeting obligations and for all costs or losses arising from contracts entered into by or for them.

8.3. Contract performance shall not begin before

D. INCOME AND EXPENDITURE

9. Cash and Banking

9.1. All University Income, including donations to support any individual's research, must be paid promptly into a bank account in the name of the University (and into no other account) and be accounted for in CUFS. All University expenditure must be paid from a University bank account and be accounted for in CUFS.

9.2. Departments and Staff have no authority to open bank accounts (whether in the UK or abroad) for any University activities without the prior written consent of the Director of Finance.

9.3. Where possible Departments shall separate duties for receiving and recording University Income. Where this is not possible regular independent checks shall be made.

9.4. Further cash, petty cash, banking, and related requirements are set out in Schedule 1.

10. Management of Expenditure

10.1. Heads of Departments are authorized to incur expenditure not exceeding the limits of funds available to the Department. They are responsible for ensuring that monitoring and control arrangements are adequate to prevent over-commitment of expenditure and that all monies under their control are safely kept and are used only for the purposes for which they are allocated. The Head of Department (or budget holder where authorized by the Head of Department) shall approve expenditure.

11. Accounting and Other Records

11.1. Heads of Department shall

11.2. Staff must comply with CUFS rules.

11.3. Record-keeping must comply with the Data Protection Act 1998. The University is subject to the Freedom of Information Act 2000 and members of the public may request copies of University documents. Advice on these matters must be obtained from the University's Data Protection and Freedom of Information Officers.

12. Supplying Goods or Services including research

12.1. Heads of Departments must establish procedures to ensure that

12.2. Debt management rules are set out in Schedule 2.

13. Research Grants

13.1. Staff shall send grant applications and proposals for research contracts to RSD for approval before their submission.

13.2. Heads of Department shall ensure there are appropriate arrangements

(a) in conjunction with RSD to

(b) that research which is funded is conducted to meet the funding conditions.

13.3. RSD shall raise all invoices for sponsored research funding. All research grant or contract income and expenditure, from whatever source of funds, must be notified to RSD and no part of this income may be transferred into donation accounts or other special funds, other than funding remaining unspent at the end of the research which the funder has agreed the Department may retain.

13.4. Heads of Department shall ensure that expenditure on research activity complies with these Regulations. Financial control and record-keeping shall also comply with any additional Research Council or other funder's requirements.

14. Donation Accounts and Trust Funds

14.1. Heads of Department must ensure that

14.2. Donation accounts must only be used for donations and must be set up on the basis that the monies are charitable funds which belong to the University and not to an individual.

14.3. University trust funds are governed by regulations set out in Statutes and Ordinances. Trust fund managers shall ensure that funds are used for proper purposes in accordance with the rules of the specific fund and the University's general charitable purposes.

14.4. Transfers of donated funds to other institutions must always be approved by the Head of Department and be in accordance with the terms of the gift and the University's general charitable purposes. Transfers shall not be made until the receiving institution has confirmed in writing that the terms of the gift will be observed. Where the transfer relates to the Head of Department's research, the Director of Finance's prior written consent must be obtained.

14.5. Donations cannot be transferred to individuals, except where the individual is the donor and the University is unable to meet the terms of the original gift. In such cases the donation may be returned. However no adjustment may be made for interest accrued or for any other putative increase in the value of the donation unless the University accepted this condition when the donation was made.

E INVESTMENT AND BORROWING

15. The Cambridge University Endowment Fund ('CUEF')

15.1. The University's Chief Investment Officer is responsible for all CUEF investment management activities. The Chief Investment Officer appoints and monitors external investment managers.

15.2. No Department or trust of the University may invest in any securities or other investments (including land and buildings) without the prior approval of the Finance Committee.

15.3. Acquisition of land is also subject to the Sites and Buildings Regulations (see para 31.1 below).

16. Investment in the CUEF and Deposit Account

16.1. Surplus funds (only) may be invested in the CUEF and Deposit Account. The Director of Finance is responsible for approving all new and any changes in CUEF holdings. Deposit Account eligibility rules and interest rates are published by the Director of Finance from time to time.

17. Borrowing, Guarantees, and Loans

17.1. Departments must not borrow money outside the University.

17.2. No guarantees or letters of comfort may be issued except with the prior written consent of the Director of Finance.

17.3. No Department may make a loan including to staff or (outside the normal course of business) extend credit arrangements without the Director of Finance's prior written consent.

F. PURCHASING

18. Obtaining Goods, Services or Construction Works

18.1 Expenditure of £2,000,000 or above on capital items (inclusive of VAT) requires the consent of the Planning and Resources Committee.

18.2 Value for money in purchasing is normally demonstrated through competition. The table below sets out the minimum competition requirement when obtaining goods, services or construction works. This applies to all expenditure irrespective of the source of funding (including spending of grant monies and leasing arrangements). If there is any reason to believe that offers which have been received are not competitive, further offers must be obtained.

Total Value*
(before VAT)
Procedure for inviting offers
Standard purchases
Framework Contracts*
Marketplace*
<£250
£250 - £500
>£500 - £10,000
>£10,000 - £50,000
>£50,000
EU Thresholds, currently:
>£139,893 (goods and services)
>£3,497,313 (works)
no quote required
telephone/web quotes
3 Competitive Quotes*
follow procedures
recommended by
CPO for the contract
3 Competitive Proposals*
3 Invitations to Tender
EU Tenders

only the quote
provided
is needed

*see definitions in Schedule 5
EU Thresholds as at January 2008 (updated biennially)


18.3. In exceptional circumstances only, prior written consent not to follow the competition procedures may be granted

18.4. Departments must seek all necessary advice.

(a) The Head of Department's prior written consent is needed for one or more payments in advance in relation to any contract totalling £10,000 or less.

(b) The Director of Finance's advice and prior written consent is needed as follows:

(c) The Director of EMBS's advice is needed for procurement falling within Regulation 6.2.

18.5. All competition shall be based on a specification drafted after consultation with anticipated users and assessment of the risks associated with the procurement. The Procurement Procedures provide further guidance on purchasing.

18.6. Goods and services may be purchased externally only if

18.7. Heads of Department must establish levels of authorization and segregation of duties for contracts where the Total Value exceeds £500 for:

Where payment duties cannot be segregated, transactions must be independently checked on a regular basis.

18.8. Orders must state the nature, quantity, and price of goods and services to be provided and where possible apply the University's terms and conditions. Copies of orders must be kept securely. Where an order is placed through CUFS, the electronic record suffices.

18.9. Official orders must be produced in a form approved by the Director of Finance for all purchases above £100 or any lower threshold set by the Head of Department.

19. Receipt of Goods or Services, Payments for services to individuals

19.1. All goods and services must be checked promptly on receipt to ensure that they accord with order requirements and suppliers advised promptly about any discrepancies. Copies of signed delivery notes must be retained. If deliveries have to be acknowledged prior to checking, endorse the delivery note 'Goods received unchecked'.

19.2. Invoices must be checked and not authorized for payment until the goods or services have been checked, unless authority is in place to pay in advance (see Regulation 18.4).

19.3. Payments to individuals must comply with Regulation 30.6.

19.4. Heads of Department shall establish arrangements for monitoring and regular appraisal of purchasing activity to ensure that best value for money is secured for current and future purchases.

G. FRAUD

20. Fraud and Irregularity

20.1. Heads of Department shall

20.2. Any member of staff who reasonably believes there is serious malpractice relating to any 'protected matter' specified in the University whistleblowing policies (see Human Resources Division website) should raise such issue using the specified procedure.

H. CORPORATE REQUIREMENTS

21. Taxation

21.1. Heads of Departments shall ensure that their Department accounts correctly for VAT and where appropriate corporation tax. Where there is any doubt as to the correct VAT or tax treatment of a transaction, the Taxation Section must be consulted.

21.2. Heads of Departments shall ensure that any taxable benefits paid to individuals are reported to the Human Resources Division for inclusion in P11D returns.

22. Legal Advice and Proceedings

22.1. The Council's Executive Council and the Registrary have authority to take legal advice and to conduct legal proceedings. Departments shall not take any action to initiate or defend legal proceedings or obtain external legal advice without first involving the Legal Services Office, which will seek consent from the Registrary or Executive Committee as necessary. The Legal Services Office should be contacted immediately if legal proceedings are served on any part of the University or any University subsidiary company.

23. Insurance

23.1. Departments must comply with the insurance requirements set out in Financial Procedures and on the Insurance Section web pages.

23.2. Contents whether owned, borrowed or hired must be valued, recorded, and notified to insurers. Departments should regularly review the value of contents held and notify the Insurance Section of

23.3. Departments must take all necessary steps to prevent losses and accidents and ensure that the Insurance Officer is advised immediately of any new unusual or significant risk. Liabilities should not be accepted on behalf of the University without careful consideration. Any liabilities not covered by insurance will fall on the Department.

23.4. Third party claims must be passed immediately to the Insurance Section without comment to the third party to ensure that the University's legal position and insurance policies are not compromised.

I. COMMERCIAL ACTIVITY

24. New Income Generation or Trading Activity

24.1. Apart from core teaching, research, and the organization of conferences, when a new income-generating or trading activity is set up (whether in the UK or abroad), the Head of Department must consult the Taxation Section beforehand to consider the VAT implications and whether the activity constitutes trading which might be subject to Corporation Tax.

24.2. The Director of Finance may direct that transactions be undertaken through a University subsidiary company.

25. University Companies

25.1. No University company may be formed (whether in the UK or abroad) for any purpose without the prior approval of the Finance Committee. Advice must be obtained from the Director of Finance.

25.2. University subsidiary companies shall enter into and keep under review a memorandum of understanding with the University. Each company shall operate in accordance with such memorandum and within the framework provided by these Regulations, including the provisions regarding procurement, and any additional procedural requirements imposed by their boards.

26. University Embedded Companies

26.1. Heads of Department and EMBS shall maintain departmental and corporate registers of Embedded Companies.

26.2. Heads of Department shall in respect of Embedded Companies

27. Consultancy and Private Activity

27.1. When engaging in consultancy or other commercial activity in a private capacity, Staff must not hold themselves out as acting on behalf of the University, use University headed stationery nor (except in accordance with Regulation 28) use any University premises, facilities or resources.

27.2. The University accepts no responsibility for any work done, advice given or activity undertaken by Staff in a private capacity. Staff are reminded of the need to take out professional indemnity insurance for such work, advice, and activity and that they are responsible for all liabilities arising including as to tax. Staff who conduct work through Cambridge University Technical Services Limited are insured under the University's insurance policies.

28. Non-University Activities - Use of Premises, Facilities, etc.

28.1. Unless the Head of Department gives prior written consent and an appropriate contractual agreement with the University is put in place, non-University activities may not be carried out on University premises nor University facilities or resources used for such activities. Care is needed to avoid breaching any obligation of the University to a third party (for example in relation to use of computing facilities and software).

28.2. Heads of Department shall ensure that appropriate charges are made for the use of University premises, facilities or resources for non-University purposes (see Regulation 12).

28.3. The Director of EMBS must be consulted before making any arrangement (including leases or licences) for the use of any University space for non-University purposes.

29. Intellectual Property

29.1. Intellectual property generated through University activities is governed by the Intellectual Property Ordinance Graced on 12 December 2005.

J. STAFFING

30. Salaries and Staff Appointments

30.1. All University employees shall have a properly authorized letter of appointment in the form approved by or under the authority of the Human Resources Committee.

30.2. 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.

30.3. 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 Human Resources Committee. Rules on expenses reimbursement are set out in Schedule 3.

30.4. Heads of Departments must provide the Payroll Section with and keep up to date a list (signed by the Head of Department) of persons authorized to sign salary documents for departmental staff paid through the payroll. Where the proposed signatory is not a University employee the approval of the Director of Finance is also required.

30.5. For all new employees the Head of Department or other authorized signatory shall 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.

30.6. Individuals may not be paid as suppliers through CUFS unless the Taxation Section has given prior written consent.

K. PROPERTY

31. Property

31.1. The University's real property is governed by Statutes and Ordinances including the Sites and Buildings Regulations.

31.2. Departments may not acquire or dispose of real property without taking the advice of the Directors of Finance and of EMBS. See further Regulation 6.

31.3. The University's Taxation Section must be consulted about VAT and the tax implications of property acquisitions, disposals, and usage.

32. Stores and Equipment

32.1. Stores and equipment shall be dealt with as set out in Schedule 4. Assets bought with University Income irrespective of the source of funding remain the property of the University until sold or destroyed, unless contracts with external sponsors specify otherwise.

L. AUTHORITY

33 Council Delegations and Directions

33.1. The Council hereby gives all delegations and directions contemplated by these Regulations.

34. Revision

34.1. Every three years, or more frequently if appropriate, the Director of Finance shall arrange for these Regulations to be reviewed and for proposed changes to be submitted to the Finance Committee for onward recommendation to the Council and adoption by Council Notice.

M. EXPLANATORY NOTE

SCHEDULE 1 - Cash and Banking Arrangements, Credit Cards, Foreign Currency

1. Heads of Department who receive cash or cheques shall establish procedures and staff instructions to ensure that:

2. The custody and transit of moneys must comply with University insurance requirements. The postal service and University Messenger Service must not be used to send cash.

3. Remittance advices and financial coding details must accompany all receipts advised to 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.

4. Petty Cash Arrangements

5. Credit Cards: The Director of Finance must authorize every credit card facility prior to use by a Department. Cardholders must sign a statement accepting the terms and conditions under which the card can be used. The card must only be used for University business. Use must be supported by vouchers for expenses incurred. The card must be returned before an employee leaves the University. Where the card is used for entertaining the conditions in Schedule 3 below must be followed. Heads of Departments must follow University credit card procedures. Cash withdrawals using University credit cards are not permitted without the prior written consent of the Director of Finance.

6. Electronic Receipting Machines (PDQ machines): The Director of Finance must give prior written consent for any use by a Department of PDQ machines for electronic receipts. 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.

7. 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.

8. Foreign Currency: Advice on foreign payments and receipts must be sought from the Director of Finance. Any bank charges and exchange rate differences will be a cost to the Department.

9. Cheques: 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 in order to be satisfied that payment complies with these Regulations. Separate signing arrangements within the Finance Division may be required for cheques denominated in foreign currency.

SCHEDULE 2 - Debt Collection

1. Debt Collection:

A debt is created whenever a credit sale is made or any other obligation to pay money to the University arises. 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. Advice must be sought from the Director of Finance where legal action to recover moneys due is considered.

2. Write-Off and Settlement Procedures:

Uncollectible debts, including in respect of sponsored research activity, 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.

SCHEDULE 3 - Travel, Subsistence, and Entertainment

1. The following rules apply to University employees.

2. Travel and subsistence reimbursement claims must be made on University claim forms or other forms or means approved by the Director of Finance. Rates of reimbursement are set by the Finance Committee and notified to Departments by the Finance Division.

3. The following conditions apply to travel and subsistence expenses:

4. The following conditions apply to entertainment:

5. The Financial Procedures Manual makes provision for payment of expenses for some non-employees.

SCHEDULE 4 - Stores and Equipment

Stores

1. Heads of Departments shall keep full, proper, and correct records of stock. A full stock take must be performed annually between 1 June and 31 July in addition to any regular interim stock takes. The stock value shall be reported to the Finance Division at the lower of cost (CUFS uses average cost which is equivalent to 'cost') or net realizable value. Details of goods may be required by the Finance Division for inclusion in the year end accounts.

2. Heads of Departments shall establish procedures to ensure that:

3. Departments must ensure that best value is obtained for the sale of any goods to external bodies or to Staff.

Equipment

4. Equipment (including vehicles):

Heads of Departments shall establish 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.

5. Equipment purchases under research contracts are subject to the competition requirements in Regulation 18. Staff must consider as part of the award criteria the whole life time costs to the University of equipment procurement (and take into account EMBS advice on any infrastructure impact). Specific rules may apply to the depreciation costs allocated to EU grants. Assets bought by the University remain University property until sale or disposal unless sponsors require otherwise.

6. Fixed asset registers must be maintained (with a minimum requirement for all items costing more than £10,000). The Finance Division will set this up if the relevant purchase invoices on CUFS is marked 'track as asset' when the invoice is being processed.

7. The Finance Division must be informed of disposals of tracked assets. Any proceeds from the sale of equipment will usually be credited to the account of the Department concerned.

8. Where equipment is loaned or received on loan, Departments must have procedures to ensure that an appropriate agreement and insurance are put in place and that the equipment is returned in good condition.

9. Vehicles:

University-owned vehicles may only be used by authorized personnel on University business. A record of authorized drivers must 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 a University vehicle is authorized for travel to and from work and it is not left on University premises at night, the employee is likely to be taxed on the benefit enjoyed. Such use must be declared on the P11D return.

SCHEDULE 5 - Definition, Advice, and Guidance

Definitions and Interpretation

Competitive Proposals Written bids submitted by a specified date (the Procurement Procedures provide sample documentation)
Competitive Quotes Quotations in writing, including via fax or email (the Procurement Procedures provide sample documentation)
CPO The University Central Purchasing Office
CUEF The Cambridge University Endowment Fund in which the main University endowments are pooled
CUFS Cambridge University Financial System
Department, Head of Department As defined in Regulation 4.1
Deposit Account A University wide facility that allows Departments to invest surpluses
EMBS The University's Estate Management and Building Service
Embedded Company A company occupying University premises or whose employees' normal place of work is on University premises, other than as temporary visitors or to provide services to the University
EU Threshold A threshold from time to time in force above which a public contract must be let in accordance with public procurement legislation
Framework Contract Any framework contracts approved by CPO
HEFCE The Higher Education Funding Council for England
Investment Board The board which manages for the University the investment of the CUEF
Marketplace Any supplier catalogue or process for obtaining offers which is made available electronically through CUFS
Nolan Principles The seven principles identified by the Committee on Standards in Public Life
Planning and Resources Committee (PRC) Planning and Resources Committee of the Council and the General Board
Procurement Procedures The guidance and model documents on procurement in the Financial Procedures Manual or published on the CPO web pages
RSD Research Services Division
Staff All employees irrespective of whether their appointment specifically includes financial responsibilities and however their employment is financed together with anyone else who has any responsibility for the administration, management or expenditure of any University Income or conducts any University Business
Sites and Buildings Regulations The University's Sites and Buildings Regulations set out in Ordinances
Total Value The contract value or estimated value as follows:
 

(a) fixed period contract: the total price to be paid or which might be paid during the whole of the period;

(b) recurrent transactions for the same type of item: the aggregated value of those transactions in the coming 12 months;

(c) uncertain duration: monthly payment × 48;

(d) feasibility studies: value of the follow-on scheme

University The Chancellor, Masters, and Scholars of the University of Cambridge
University Business University business which has a financial impact
University Income All monies, regardless of source or purpose, which are due or paid to the University or made available to individuals because of their association with the University

TERMS ARE TO BE UNDERSTOOD AS USED IN STATUTES AND ORDINANCES, UNLESS THE CONTEXT OF THE REGULATION REQUIRES OTHERWISE.

Words preceding 'include', 'includes', 'including', and 'included' shall be construed without limitation by the words which follow those words.

Further Guidance is contained in

1 See the University's Corporate Governance Statement, annexed to the University's Annual Reports and Financial Statements

2 Statute A, Ch IV, para 1 and Statute F, Ch I para (a). See also Ordinance Ch I, Special Regulations for Syndicates, Local Examinations Syndicate, and Press Syndicate

3 Ordinances Ch I, The Council, Legal Powers

4 Statute F, Ch III para 6 and Ordinance Ch XIII, Financial Matters, para 6

5 Statute F, Ch I para 2

6 Statute D, Ch III para 3

7 Statute D, Ch IV, para 3

8 Statute C, Ch V para 3(c) and Ch IV para 10

9 Ordinance Ch IX, Departments and Heads of Department paras 4 and 5

10 Statute D, Ch VIII, para 1

11 Ordinances Chapter XI, Special Regulations for University Officers, Unified Administrative Service, paras 1 and 2

12 Sites and Buildings Regulation 2 and 8

13 Sites and Buildings Regulation 6

14 Sites and Buildings Regulation 8

15 Statute F, Ch 1, para 2 and Sites and Buildings Regulation Sites and Buildings Regulation 4

16 Ordinances Ch XIII, Council Notice: Ethical Guidelines on the Acceptance of Benefactions