Section 1: Overview

1.01 Purpose of Financial Regulations

This document contains the Financial Regulations as approved by the Executive Director of Finance, acting upon authority delegated by the University of Glasgow’s Scheme of Delegation.

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 (“HMRC”), the Scottish Funding Council (“SFC”) and other authorities.

1.02 Financial Responsibilities

University Court

University Court of the University of Glasgow (hereafter referred to as University Court), has ultimate responsibility for the management and regulation of the financial affairs of the University, ensuring compliance with the SFC’s Financial Memorandum with Higher Education Institutions (“the Financial Memorandum”) and associated guidance, and any other conditions associated with funding received by the University.

The University is required to ensure:

-  It has a reliable system of governance, management and conduct in order to safeguard public funds received and achieve the purposes for which the funds were received;
-  Transparency and ability to give a public justification of its decisions in relation to public funds;
-  It strives to achieve value for money and is economical, efficient and effective in its use of public funding;
-  It plans and manages its activities to remain sustainable and financially viable;
- That it has a sound system of internal management and control, including an audit committee, internal audit function and adequate procedures to prevent fraud and bribery;
- An effective policy of risk management;
- It has regular, timely, accurate and adequate information to monitor performance;
- Continuous improvement of the quality of its activities.

The Principal

The Principal is directly accountable to the Chief Executive Officer of the SFC for the institution’s proper use of funds.
He/she is required to report to the SFC without delay of any circumstance which is having or is likely to have a significant adverse effect on the ability of the institution to deliver its education programmes, research and other related activity. The Principal is also required to notify the SFC any serious weakness including: significant and immediate threat to the University’s financial position; significant fraud or major accounting breakdown; or any material non-compliance with the requirements of the Financial Memorandum.
Finance Committee.

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

  • To provide oversight on the short and long term financial sustainability of the Institution
  • Monitor the income and expenditure of the University
  • Consider financial policies and issues and to make recommendations to University Court on,

- The annual budget;
- Banking, borrowing and lending;
- The investment of endowment funds and surplus cash funds
- The long-term financial position of the University
- Academic partnerships with significant resource implications
- Creation of new companies

  • Advise Court on the financial implications of policy decisions being considered by Court
  • Consider the financial statements of the University and make recommendations to University Court thereon.
  • Review long term cash flows and balance sheets
  • Review and report to Court on the recommendations of the Investment Advisory Committee
  • As reported by the Investment Committee:

- make recommendations to Court on the budget for infrastructure investment
- decide on all investment proposals (capital and revenue) involving expenditure of between £3million and £25million and, where appropriate, having been pre-approved by the Estates Committee and/or Information Policy & Strategy Committee
- make recommendations to Court on all investment proposals (capital and revenue) involving expenditure of £25M or above and, where appropriate, having been pre-approved by Investment Committee
- approve variances to budget of £0.5million and above on individual project

  • As regards governance and risk:

- Ensure appropriate financial governance is being applied at the University
- Review and make recommendations to Senior Management Group and Court on key financial and commercial risks
- review debtor levels and associated sanctions

  •  Innovation:

- review progress against strategy
- review and approve disposals and investments in university spin out companies above £0.25M

  • Sub Committee Oversight of the following

- Student Finance Committee
- Investment Advisory Committee
- Other temporary Committees that may be created at the request of the Finance Committee or Court

In all financial matters, Finance Committee will take into consideration the short and long term financial sustainability of the Institution
It will also establish an Investment Advisory Sub-Committee, the terms of reference of which are outlined in 7.02 Treasury Management.

Executive Director of Finance

The University Court appoints the Executive Director of Finance who has management responsibility for the overall financial affairs of the University.

Senior Management Group

The Principal convenes a Senior Management Group (“SMG”) whose members include Heads of College, Vice Principals and other senior administrative officers. The SMG 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.

SMG 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.

Members may delegate responsibility for financial management within their area of responsibility as appropriate, although the overall accountability remains with the SMG member.


1.03 Application

The Financial Regulations apply to all entities consolidated within the University’s Financial Statements and therefore apply to all subsidiary companies. They apply to all activities and business carried out by or on behalf of the University, 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 Executive Director of Finance is responsible for ensuring that copies of the Financial Regulations are published on the University’s website. The Executive Director of Finance has authority under the Scheme of Delegation to approve supplementary financial and commercial policies which are subordinate to these Regulations and which assist with their implementation.

1.04 Revision of Financial Regulations

Every three years, or more frequently if appropriate, the Executive Director of Finance shall arrange for the Financial Regulations to be reviewed and if necessary, updated. Any proposed changes will be submitted to the Senior Management Group and Finance Committee for information purposes.  According to the Scheme of Delegation, the Executive Director of Finance has delegated authority to approve the updated Financial Regulations.

1.05 Non-Compliance with the Regulations

It is the responsibility of all SMG 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. SMG members should ensure that staff members are made aware that non-compliance with the Financial Regulations will lead to disciplinary action being taken.

Where the Executive Director of Finance finds non-compliance with the Financial Regulations, he or she shall consult with the relevant SMG Member to ensure that the matter is addressed with reference to the University’s disciplinary procedures, which are available on the People & Organisational Development (P&OD)Dwebsite. If agreement cannot be reached or the breach is material to the University, the matter will be reported to the Principal and the Finance Committee.