Section 1: Overview

1.01 Purpose of Financial Regulations
1.02 Financial Responsibilities
1.03 Application and Breach
1.04 Revision of Financial Regulations
1.05 General Provisions

1.01 Purpose of Financial Regulations
This document contains the Financial Regulations as approved by the University Court of the University of Glasgow (hereafter referred to as University Court), acting on recommendation of the Finance Committee. The Financial Regulations apply to all financial business of the University of Glasgow and associated legal entities, irrespective of the source of funding. The purpose of the Financial Regulations is to ensure the proper and transparent use of finances and resources in a manner which not only satisfies the requirements of internal control expected of a substantial and prominent organisation, but also fulfils any legal or financial obligations as laid down by the Statutes and Ordinances, Her Majesty’s Revenue and Customs, the Scottish Funding Council and other authorities.

1.02 Financial Responsibilities
University Court is responsible for the management and regulation of the financial affairs of the University, ensuring compliance with the Financial Memorandum and associated guidance as published by the Scottish Funding Council, and any other conditions associated with funding received by the University.

University Court is also responsible for the University’s systems of internal control and risk management. The risk management policy of the University is to adopt good practices in the identification, evaluation and cost effective control of risks to ensure that the risks are i) avoided, ii) reduced to an acceptable level, or iii) managed and contained.

The Principal is the designated officer appointed by University Court who is directly accountable to the Chief Executive Officer of the Scottish Funding Council for the institution’s proper use of funds.  The Principal is responsible for reviewing the effectiveness of the University’s system of internal control and risk management.

The University Court delegates the policy making associated with financial administration to the Finance Committee. The Finance Committee’s formal remit is to:

  • Monitor the income and expenditure of the University;
  • Consider financial policies and issues and to make recommendations to University Court on these  matters, having regard to the importance of financial sustainability;
  • Advise University Court on the financial implications of policy decisions being considered;
  • Consider the annual accounts of the University and make recommendations to University Court thereon.

Finance Committee will also consider the annual budget of the University and make recommendations to University Court thereon.

University Court appoints a Director of Finance who has management responsibility for the overall financial affairs of the University.
The Principal convenes a Senior Management Group whose members include Heads of College, Vice Principals and other senior administrative officers. The Senior Management Group advises the Principal on matters of policy. It also advises Court and Senate on matters of strategic policy (academic and resource), and acts on a day-to-day basis to implement the policies of Court and Senate. Senior Management Group members are responsible for the proper application of funds within their area of responsibility and for ensuring that there are adequate internal control and risk management procedures in place.  In exercising their responsibilities, regard must be given to measures to safeguard University funds and other assets under their control against misuse or misappropriation. Senior Management Group members may delegate responsibility for financial management within their area of responsibility as appropriate, although the overall accountability remains with the Senior Management Group Member.

1.03 Application and Breach
The Financial Regulations apply to all bodies consolidated within the University’s Financial Statements and therefore apply to 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. The Financial Regulations apply to all staff members whilst conducting the financial business of the University. These regulations are subordinate to the University’s Statutes and Ordinances.

The Director of Finance is responsible for ensuring that copies of the Financial Regulations are published on the University’s website and that hard copies are distributed to the Senior Management Group on an annual basis.

It is the responsibility of all Senior Management Group members to ensure that all staff members under their jurisdiction are made aware of the existence and provisions of the Financial Regulations and where necessary ensure that staff are trained to carry out their duties. In particular, Senior Management Group members should ensure that staff members are made aware that non-compliance with the Financial Regulations will lead to disciplinary action being taken.

The Group Financial Controller or Financial Accountant should be contacted for advice if there is any uncertainty as to the application of the Financial Regulations (contact details available on the Finance Office website).

1.04 Revision of Financial Regulations
Every three years, or more frequently if appropriate, the Director of Finance shall arrange for the Financial Regulations to be reviewed. Any proposed changes will be submitted to the Finance Committee for onward recommendation to University Court. The Director of Finance may at any time submit to the Finance Committee amendments or additions to the Financial Regulations as may be considered appropriate.

1.05 General Provisions
Where the Director of Finance finds non-compliance with the Financial Regulations, he or she shall consult with the relevant Senior Management Group Member to ensure that the matter is addressed with reference to the University’s disciplinary procedures, which are available on the HR website. If agreement cannot be reached or the breach is material to the detriment of the overall University, the matter will be reported to the Principal and the Finance Committee.