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  1. 1. FINANCE AND ACCOUNTS PROCEDURES MANUAL March 2005
  2. 2. Finance and Accounts Procedures Manual Index 1.1.1 INTRODUCTION................................................................................................................................................................................................1 1.1.1.1 STATUS OF THE FINANCIAL PROCEDURES MANUAL...................................................................................................................................................1 1.1.3.1 SCOPE & CONTENT.......................................................................................................................................................................................1 1.1.5.1 BUDGETARY RESPONSIBILITY............................................................................................................................................................................1 1.1.11.1 FINANCE OFFICE STRUCTURE AND STAFFING........................................................................................................................................................1 1.1.15.1 BUDGET HOLDER LIAISON...............................................................................................................................................................................1 1.1.17 DATA PROTECTION.......................................................................................................................................................................................1 1.1.17.1 THE DATA PROTECTION ACT.........................................................................................................................................................................1 1.1.19.1 DATA PROTECTION PRINCIPLES........................................................................................................................................................................1 1.1.22.1 DATA SECURITY.........................................................................................................................................................................................1 1.1.26.1 DATA CONTROLLERS....................................................................................................................................................................................2 1.1.27.1 DATA PROCESSING......................................................................................................................................................................................2 1.1.28.1 COMPLIANCE..............................................................................................................................................................................................2 1.1.30 VAT...................................................................................................................................................................................................................2 1.1.30.1 GENERAL..................................................................................................................................................................................................2 1.1.34.1 CALCULATION AND EXPLANATION OF TERMS OF VAT............................................................................................................................................2 1.1.38.1 VAT AND THE UNIVERSITY COLLEGE...............................................................................................................................................................2 1.1.43.1 BUYING DEPARTMENTS AND VAT ON PURCHASES................................................................................................................................................2 1.1.46.1 VAT ON IMPORTS OF GOODS AND SERVICES .....................................................................................................................................................2 1.1.48.1 SELLING DEPARTMENTS AND VAT ON SALES .....................................................................................................................................................3 1.1.50.1 DETAIL REQUIRED FOR TRANSFER TO ACCOUNTS SYSTEM.......................................................................................................................................3 1.1.56 USE OF UNIVERSITY COLLEGE EQUIPMENT.............................................................................................................................................3 1.1.56.1 IT EQUIPMENT...........................................................................................................................................................................................3 1.1.57.1 TELEPHONES..............................................................................................................................................................................................3 1.1.59 BUDGET HOLDER GUIDE TO DOCUMENT RETENTION............................................................................................................................3 1.1.59.1 SEE TABLE REPRODUCED AT ..........................................................................................................................................................................3 1.1.60 BUDGET HOLDER GUIDE TO PURCHASES................................................................................................................................................3 1.1.60.1 CENTRAL PURCHASING - THE BUYERS GUIDE....................................................................................................................................................3 1.1.62.1 PURCHASING SUPPLIES THROUGH THE UNIVERSITY COLLEGE SHOPS.........................................................................................................................3 1.1.66.1 PURCHASES BY A DEPARTMENT OTHER THAN THROUGH THE UNIVERSITY COLLEGE SHOPS..............................................................................................3 1.1.70.1 RAISING AN ORDER – ONLINE THROUGH THE DREAM ACCOUNTING SOFTWARE..............................................................................................................3 1.1.77.1 RAISING AN ORDER USING A PAPER ORDER FORM.................................................................................................................................................4 1.1.83.1 MARKET TESTING PROCEDURES.......................................................................................................................................................................4 1.1.89.6 RECEIPT OF GOODS – ONLINE........................................................................................................................................................................5 1.1.92.1 RECEIPT OF GOODS USING A PAPER BASED ORDER FORM.......................................................................................................................................5 1.1.94.1 PART DELIVERIES ON-LINE.............................................................................................................................................................................5 1.1.95.1 PART DELIVERIES USING A PAPER BASED ORDER FORM..........................................................................................................................................5 1.1.98.1 RECEIPT OF INVOICE ON-LINE.........................................................................................................................................................................6 1.1.100.3 RECEIPT OF INVOICE USING A PAPER BASED ORDER FORM ...................................................................................................................................6 1.1.102.1 CANCELLING AN ORDER ON-LINE....................................................................................................................................................................6 1.1.104.1 CANCELLING AN ORDER...............................................................................................................................................................................6 1.1.106.1 UTILITY INVOICES - PROCESS FOR AUTHORISATION..............................................................................................................................................6 1.1.111.1 PROCESSING INVOICES FOR WHICH NO ORDER HAS BEEN RAISED............................................................................................................................6 1.1.115.1 LEASING AGREEMENTS................................................................................................................................................................................6 1.1.119.1 INTERNAL PURCHASE ORDERS.......................................................................................................................................................................6 1.1.124.1 PAYMENT AUTHORISATION FORMS (EX REQUEST FOR PAYMENT FORM).....................................................................................................................7 1.1.131 BUDGET HOLDER GUIDE TO THE CONSTRUCTION INDUSTRY SCHEME ..........................................................................................7 1.1.131.1 OPERATION OF THE SCHEME........................................................................................................................................................................7 1.1.135 BUDGET HOLDER GUIDE TO PAYMENTS ................................................................................................................................................7 1.1.135.1 PAYMENT METHODS AND TIMES ....................................................................................................................................................................7 1.1.141.1 PETTY CASH ...........................................................................................................................................................................................7 1.1.148.1 UNIVERSITY COLLEGE CREDIT CARDS ............................................................................................................................................................8 1.1.157 BUDGET HOLDER GUIDE TO FEE IMPLICATIONS OF STUDENT WITHDRAWAL................................................................................8 1.1.157.1 FINANCIAL IMPLICATIONS TO THE STUDENT........................................................................................................................................................8 1.1.159.1 TUITION FEE REFUND..................................................................................................................................................................................8 1.1.162.1 STUDIO FEE REFUND..................................................................................................................................................................................8 1.1.163.1 FINANCIAL IMPLICATION TO STUDENT SPONSORS.................................................................................................................................................8 1.1.166 BUDGET HOLDER GUIDE TO SUNDRY SALES........................................................................................................................................8 1.1.166.1 SUNDRY INCOME.......................................................................................................................................................................................8 Bath Spa University College Finance and Accounts Procedures Manual March 2005 Index page i
  3. 3. 1.1.170.1 CASH SALES............................................................................................................................................................................................8 1.1.171.1 CREDIT SALES .........................................................................................................................................................................................8 1.1.176.1 CREDIT CONTROL......................................................................................................................................................................................9 1.1.180.1 DEPARTMENTAL ACCOUNTS..........................................................................................................................................................................9 1.1.182 BUDGET HOLDER GUIDE TO RECEIPTS...................................................................................................................................................9 1.1.182.1 INCOME COLLECTION..................................................................................................................................................................................9 1.1.184.1 RECEIPT OF INCOME..................................................................................................................................................................................9 1.1.187.1 SECURITY OF CASH HELD ...........................................................................................................................................................................9 1.1.188.1 BANKING INCOME......................................................................................................................................................................................9 1.1.193.1 COMPLETED RECEIPT BOOKS .......................................................................................................................................................................9 1.1.194.1 USE OF NON-UNIVERSITY COLLEGE BANK ACCOUNTS..........................................................................................................................................9 1.1.196.1 ELECTRONIC TILLS.....................................................................................................................................................................................9 1.1.202 BUDGET HOLDER GUIDE TO FIXED ASSETS ..........................................................................................................................................9 1.1.202.1 RECORDING OF FIXED ASSETS.......................................................................................................................................................................9 1.1.208.1 PURCHASE OF ASSETS / EQUIPMENT.............................................................................................................................................................10 1.1.210.1 PURCHASE OF CAPITAL FUNDED EQUIPMENT & MINOR WORKS..............................................................................................................................10 1.1.214.1 DISPOSAL OF EQUIPMENT..........................................................................................................................................................................10 1.1.222.1 EXISTENCE OF EQUIPMENT.........................................................................................................................................................................10 1.1.226.1 SECURITY OF EQUIPMENT..........................................................................................................................................................................10 1.1.229.1 EQUIPMENT LOANS..................................................................................................................................................................................10 1.1.236 BUDGET HOLDER GUIDE TO INSURANCE.............................................................................................................................................10 1.1.236.1 COVER.................................................................................................................................................................................................10 1.1.238.1 COMPUTERS..........................................................................................................................................................................................11 1.1.244.1 MOTOR TRAVEL......................................................................................................................................................................................11 1.1.248.1 OVERSEAS TRAVEL..................................................................................................................................................................................11 1.1.251.1 PROFESSIONAL INDEMNITY.........................................................................................................................................................................11 1.1.254.1 CLAIMS PROCEDURE.................................................................................................................................................................................11 1.1.261 BUDGET HOLDER GUIDE TO PART TIME LECTURER PAYMENTS.....................................................................................................11 1.1.261.1 PART TIME LECTURERS ............................................................................................................................................................................11 1.1.265.1 INLAND REVENUE ...................................................................................................................................................................................11 1.1.270 BUDGET HOLDER GUIDE TO LIQUID OFFICE – PART TIME LECTURER CONTRACTS AND CLAIMS............................................12 1.1.270.1 OVERVIEW.............................................................................................................................................................................................12 1.1.275.1 PART TIME LECTURER CONTRACTS...............................................................................................................................................................12 1.1.281.1 PART TIME LECTURER CLAIMS.....................................................................................................................................................................12 1.1.288 BUDGET HOLDER GUIDE TO LIQUID OFFICE – CASUAL WORKER AGREEMENTS AND CLAIMS.................................................12 1.1.288.1 OVERVIEW ............................................................................................................................................................................................12 1.1.293.1 CASUAL WORKER AGREEMENTS...................................................................................................................................................................12 1.1.299.1 CASUAL WORKER CLAIMS...........................................................................................................................................................................12 1.1.304.1 SPECIALIST VISITING LECTURERS CLAIM FORM .................................................................................................................................................13 1.1.307.1 EXTERNAL EXAMINER CLAIM FORM ...............................................................................................................................................................13 1.1.310.1 FULL TIME EMPLOYEES CLAIM FORM .............................................................................................................................................................13 1.1.312 BUDGET HOLDER GUIDE TO EXPENSES ..............................................................................................................................................13 1.1.312.1 EXPENSE CLAIMS.....................................................................................................................................................................................13 1.1.315.1 STAFF TRAVEL AND SUBSISTENCE EXPENSES CLAIM FORM...................................................................................................................................13 1.1.323.1 RAIL WARRANTS......................................................................................................................................................................................13 1.1.325.1 SUBSISTENCE CLAIMS ..............................................................................................................................................................................13 1.1.328.1 ABS FORM..........................................................................................................................................................................................13 1.1.334.1 SCHOOL EXPERIENCE EXPENSES CLAIM FORM..................................................................................................................................................14 1.1.339 BUDGET HOLDER GUIDE TO TRANSPORT AND PROJECTS OFFICER ............................................................................................14 1.1.339.1 RESPONSIBILITIES ...................................................................................................................................................................................14 1.1.341.1 SCHOOL EXPERIENCE - PRINCIPLES .............................................................................................................................................................14 1.1.347.1 SCHOOL EXPERIENCE - ENTITLEMENT TO EXPENSES..........................................................................................................................................14 1.1.350.1 SCHOOL EXPERIENCE - ARRANGEMENTS........................................................................................................................................................14 1.1.353.1 SCHOOL EXPERIENCE - PRIVATE CARS...........................................................................................................................................................14 1.1.359.1 SCHOOL EXPERIENCE - TAXIS ....................................................................................................................................................................14 1.1.363.1 SCHOOL EXPERIENCE - COACH TRANSPORT....................................................................................................................................................14 1.1.365.1 SCHOOL EXPERIENCE - EXPENSES CLAIMS......................................................................................................................................................14 1.1.375.1 EDUCATIONAL VISITS - REQUESTS FOR TRANSPORT...........................................................................................................................................15 1.1.381.1 INTER-SITE TRANSPORT.............................................................................................................................................................................15 1.1.384.1 ORDERING ............................................................................................................................................................................................15 1.1.389.1 INVOICES...............................................................................................................................................................................................15 1.1.394 BUDGET HOLDER GUIDE TO RESEARCH AND CONSULTANCY PROJECTS....................................................................................16 1.1.394.1 RESEARCH OVERVIEW ..............................................................................................................................................................................16 1.1.399.1 RESEARCH BUDGET ALLOCATIONS................................................................................................................................................................16 1.1.401.1 NEW PROJECTS OVERVIEW........................................................................................................................................................................16 Bath Spa University College Finance and Accounts Procedures Manual September 2004 Index page ii
  4. 4. 1.1.404.1 PURCHASING .........................................................................................................................................................................................16 1.1.406.1 EXPENSES.............................................................................................................................................................................................16 1.1.414.1 FEE PAYMENTS.......................................................................................................................................................................................16 1.1.416.1 INFORMATION ON EXPENDITURE...................................................................................................................................................................16 1.1.418 BUDGET HOLDER GUIDE TO DEPARTMENTAL MANAGEMENT ACCOUNTS....................................................................................17 1.1.418.1 MONTH END PROCEDURE...........................................................................................................................................................................17 1.1.422.1 MONTH END FINANCE REPORTS..................................................................................................................................................................17 1.1.428 BUDGET HOLDER GUIDE TO INCOME GENERATING ACTIVITIES......................................................................................................17 1.1.428.1 CORE AND ESTABLISHED ACTIVITIES..............................................................................................................................................................17 1.1.431.1 NON-CORE ACTIVITIES..............................................................................................................................................................................17 1.1.433.1 APPROVAL OF BUDGETS............................................................................................................................................................................17 1.1.437.1 ADDITIONAL PAYMENTS TO EMPLOYEES INVOLVED IN NON-CORE ACTIVITIES..............................................................................................................18 1.1.440.1 PAYMENTS TO SUPPLIERS FOR WORK ON NON-CORE ACTIVITIES............................................................................................................................18 1.1.444.1 RELATED PARTY TRANSACTIONS .................................................................................................................................................................18 1.1.447.1 PRICES CHARGED BY NON-CORE ACTIVITIES....................................................................................................................................................18 1.1.450.1 INTERNAL RECHARGES .............................................................................................................................................................................18 1.1.453.1 USE OF COLLEGE PREMISES FOR NON-CORE ACTIVITIES....................................................................................................................................18 1.1.459.1 DEVELOPMENT OF SUMMER SCHOOLS...........................................................................................................................................................18 1.1.464 BUDGET HOLDER GUIDE TO STUDENT SERVICES FUND ADMINISTRATION...................................................................................19 1.1.464.1 FUNDS ADMINISTERED BY THE WELFARE DEPARTMENT......................................................................................................................................19 1.1.466.7 FUNDING COUNCIL FUNDS ADMINISTERED BY THE STUDENT SERVICES ACCOUNTANT.................................................................................................19 1.1.469.1 UNIVERSITY COLLEGE FUNDS ADMINISTERED BY THE STUDENT SERVICES ACCOUNTANT............................................................................................20 1.1.475 FINANCE CONSTRUCTION INDUSTRY SCHEME INSTRUCTIONS.......................................................................................................20 1.1.475.1 OPERATION OF THE SCHEME......................................................................................................................................................................20 1.1.478 FINANCE PURCHASES INSTRUCTION....................................................................................................................................................20 1.1.478.1 PURCHASE ORDER FORMS.........................................................................................................................................................................20 1.1.480.1 RECEIPT OF ORDERS - PAPER.....................................................................................................................................................................20 1.1.493.1 TREATMENT OF UTILITY INVOICES.................................................................................................................................................................20 1.1.495.1 ENTRY OF COMMITMENT............................................................................................................................................................................20 1.1.499.1 CANCELLATION OF ORDER..........................................................................................................................................................................21 1.1.501.1 CREATION OF NEW SUPPLIER......................................................................................................................................................................21 1.1.502.1 RECEIPT OF PURCHASE INVOICE FROM SUPPLIER..............................................................................................................................................21 1.1.509.1 RECEIPT OF PURCHASE INVOICE FROM BUDGET HOLDER.....................................................................................................................................21 1.1.511.1 RECEIPT OF PURCHASE INVOICE FOR WHICH THERE IS NO COMMITMENT.................................................................................................................21 1.1.512.1 INVOICE ENTRY ROUTINES..........................................................................................................................................................................21 1.1.513.1 AUTHORISATION OF INVOICES......................................................................................................................................................................21 1.1.514.1 RECEIPT OF STATEMENTS..........................................................................................................................................................................21 1.1.515.1 ORDERS CLOSED PRIOR TO COMPLETION.......................................................................................................................................................21 1.1.516.1 MONTH END PROCEDURE...........................................................................................................................................................................21 1.1.519 FINANCE PAYMENTS INSTRUCTION.......................................................................................................................................................21 1.1.519.1 PRINCIPLES...........................................................................................................................................................................................21 1.1.521.1 PAYMENT METHODS AND TIMES...................................................................................................................................................................21 1.1.523.1 BACS PAYMENTS...................................................................................................................................................................................22 1.1.525.1 CHEQUES..............................................................................................................................................................................................22 1.1.529.1 PAYLIST CREATION...................................................................................................................................................................................22 1.1.538.1 MANUAL CHEQUES...................................................................................................................................................................................22 1.1.542.1 PAYMENTS NOT SUPPORTED BY INVOICE........................................................................................................................................................22 1.1.546 FINANCE PETTY CASH INSTRUCTIONS..................................................................................................................................................22 1.1.546.1 VALUE OF PETTY CASH CLAIMS....................................................................................................................................................................22 1.1.547.1 ADMINISTERING PETTY CASH CLAIMS.............................................................................................................................................................22 1.1.553 FINANCE SALES LEDGER INSTRUCTIONS.............................................................................................................................................22 1.1.553.1 SUNDRY SALES.......................................................................................................................................................................................22 1.1.554.1 CASH SALES..........................................................................................................................................................................................22 1.1.555.1 BILLING PROCEDURE ...............................................................................................................................................................................22 1.1.567.1 CREATION OF NEW CUSTOMER....................................................................................................................................................................23 1.1.569.1 RECEIPT OF CASH...................................................................................................................................................................................23 1.1.572 FINANCE FEE INSTRUCTIONS..................................................................................................................................................................23 1.1.572.1 SLC ELECTRONIC TUITION FEE REPORTS.......................................................................................................................................................23 1.1.579.1 SITS FINANCE MODULE...........................................................................................................................................................................23 1.1.585.1 TUITION FEES ENTERED DIRECT INTO DREAM..................................................................................................................................................24 1.1.587.1 TUITION FEE BILLING................................................................................................................................................................................24 1.1.588.1 STUDIO FEES.........................................................................................................................................................................................24 1.1.589.1 ACCOMMODATION FEES.............................................................................................................................................................................24 1.1.590.1 MISCELLANEOUS FEES..............................................................................................................................................................................24 Bath Spa University College Finance and Accounts Procedures Manual March 2005 Index page iii
  5. 5. 1.1.592 FINANCE CREDIT CONTROL INSTRUCTIONS........................................................................................................................................24 1.1.592.1 DEBT COLLECTION...................................................................................................................................................................................24 1.1.594.1 SUNDRY SALES ......................................................................................................................................................................................24 1.1.597.1 STUDENT DEBTS.....................................................................................................................................................................................24 1.1.601.2 SPONSOR DEBTS.....................................................................................................................................................................................24 1.1.603.1 INSERVICE DEBTS....................................................................................................................................................................................25 1.1.605.1 WRITE OFF OF BAD DEBTS.........................................................................................................................................................................25 1.1.608 FINANCE RECEIPT INSTRUCTIONS.........................................................................................................................................................25 1.1.608.1 RECEIPT OF INCOME................................................................................................................................................................................25 1.1.611.1 INCOME RECEIVED BY POST........................................................................................................................................................................25 1.1.614.1 INCOME FROM CREDIT CARDS......................................................................................................................................................................25 1.1.622.1 ENTRY OF INCOME ONTO FINANCE SYSTEM....................................................................................................................................................25 1.1.624.1 SECURITY OF CASH HELD..........................................................................................................................................................................25 1.1.629.1 BANKING PROCEDURE...............................................................................................................................................................................26 1.1.633.1 BANKING PREPARATION............................................................................................................................................................................26 1.1.635.1 BANK RECONCILIATION..............................................................................................................................................................................26 1.1.639 FINANCE FIXED ASSET INSTRUCTIONS.................................................................................................................................................26 1.1.639.1 IDENTIFICATION OF FIXED ASSET PURCHASES...................................................................................................................................................26 1.1.642.1 FIXED ASSET REGISTER MAINTENANCE...........................................................................................................................................................26 1.1.645.1 FIXED ASSET LABELS................................................................................................................................................................................26 1.1.651.1 DISPOSAL OF FIXED ASSETS.......................................................................................................................................................................26 1.1.661.1 VERIFICATION OF EXISTENCE OF FIXED ASSETS ...............................................................................................................................................26 1.1.666 FINANCE INSURANCE INSTRUCTIONS...................................................................................................................................................27 1.1.666.1 COVER.................................................................................................................................................................................................27 1.1.668.1 CLAIMS PROCEDURE ................................................................................................................................................................................27 1.1.671.1 CLAIM FORMS.........................................................................................................................................................................................27 1.1.675.1 LIABILITY CLAIMS.....................................................................................................................................................................................27 1.1.676.1 EQUIPMENT LOSSES.................................................................................................................................................................................27 1.1.678 FINANCE PAYROLL INSTRUCTIONS.......................................................................................................................................................27 1.1.678.1 PAYROLL PROCEDURES MANUAL..................................................................................................................................................................27 1.1.680 FINANCE PART TIME LECTURER INSTRUCTIONS................................................................................................................................27 1.1.680.1 INLAND REVENUE....................................................................................................................................................................................27 1.1.684.1 EMPLOYMENT CONTRACTS.........................................................................................................................................................................27 1.1.687.1 PART TIME LECTURERS CLAIM FORM.............................................................................................................................................................27 1.1.691.1 PAYROLL DEPARTMENT.............................................................................................................................................................................27 1.1.692.1 SPECIALIST VISITING LECTURERS CLAIM FORM .................................................................................................................................................27 1.1.694.1 FULL TIME EMPLOYEES CLAIM FORM..............................................................................................................................................................28 1.1.696 FINANCE EXPENSES INSTRUCTIONS.....................................................................................................................................................28 1.1.696.1 EXPENSE CLAIMS.....................................................................................................................................................................................28 1.1.698.1 STAFF TRAVEL AND EXPENSES CLAIM FORM ...................................................................................................................................................28 1.1.702.1 SCHOOL EXPERIENCE EXPENSES CLAIM FORM..................................................................................................................................................28 1.1.703.1 INTERVIEW EXPENSES...............................................................................................................................................................................28 1.1.704.1 TEMPORARY EMPLOYMENT CLAIMS...............................................................................................................................................................28 1.1.706 FINANCE TRANSPORT INSTRUCTIONS..................................................................................................................................................28 1.1.706.1 SCHOOL EXPERIENCE - STUDENT EXPENSE CLAIMS...........................................................................................................................................28 1.1.710.1 TRANSPORT ORDERS................................................................................................................................................................................28 1.1.715 FINANCE STUDENT SERVICES FUND INSTRUCTIONS.........................................................................................................................28 1.1.715.1 FUNDS ADMINISTERED BY THE STUDENT SERVICES ACCOUNTANT........................................................................................................................28 Appendix A DEPARTMENTS WHERE INPUT VAT IS RECOVERABLE..............................................................................................................30 Appendix B GUIDELINES FOR RECOMMENDED MINIMUM PERIOD FOR RETENTION OF PERSONAL DATA, BASED ON THE RECOMMENDATIONS OF UNIVERSITIES UK.......................................................................................................................................................31 Appendix C TOP LEVEL DEPARTMENTAL BUDGET HOLDERS........................................................................................................................32 Appendix D BUDGET HOLDER LIAISON RESPONSIBILITY...............................................................................................................................32 Appendix E DIRECTORATE AS AT March 2005...................................................................................................................................................33 Appendix F SENIOR MANAGEMENT TEAM (SMT) AS AT March 2005..............................................................................................................33 Appendix G FINANCE DEPARTMENT STRUCTURE CHArt.................................................................................................................................34 Bath Spa University College Finance and Accounts Procedures Manual September 2004 Index page iv
  6. 6. 1.1.14 The Payroll department can be found in MH G07. 1.1.1 INTRODUCTION 1.1.15 A Finance department structure chart can be found in . 1.1.1.1 Status of the financial procedures manual 1.1.15.1 Budget holder liaison 1.1.2 This manual is issued under the requirements of Financial Regulations (section 1.4) and is binding on all 1.1.16 Budget holders will be advised by a member of the staff. Finance Management Group – See list at . 1.1.3 Interpretation of these Financial and Accounts Procedures shall be the responsibility of the Head of Finance and Commercial Activities. 1.1.17 DATA PROTECTION 1.1.3.1 Scope & content 1.1.17.1 The Data Protection Act 1.1.4 This manual describes the Finance and administrative 1.1.18 The Data Protection Act applies to 'personal data' that systems and procedures that have been implemented to is, data about identifiable living individuals whether held in ensure tight financial & budgetary control. an electronic database, paper file, image or index. 1.1.5 The manual comprises a table of contents and detailed 1.1.19 The Data Protection Act covers information which is Finance systems / procedures. Examples of documents recorded as part of a 'relevant filing system', that is, a set and forms currently in use by Finance can be found on of information in which the records are structured, either the Finance web pages at: by reference to individuals or by reference to criteria http://www.bathspa.ac.uk/departments/Finance/forms/. relating to individuals, so that 'specific information relating to a particular individual is readily accessible'. The 1.1.5.1 Budgetary responsibility definition means a significant amount of manual data falls under the scope of the Data Protection Act. 1.1.6 The Head of Finance and Commercial Activities (hereafter referred to as the Head of Finance) is 1.1.19.1 Data protection principles responsible for maintaining a system of budgetary control that incorporates control of expenditure, and achievement 1.1.20 Anyone processing personal data must comply with of planned levels of income generation. the eight enforceable principles of good practice. They say that data must be: 1.1.7 The annual University College budget (covering income • Fairly and lawfully processed & expenditure) is prepared by the Head of Finance and, • Processed for limited purposes and not in any with the recommendation of the Director is submitted to manner incompatible with those purposes Governors for approval. • Adequate, relevant and not excessive 1.1.8 The approved budget is allocated to top-level • Accurate departmental budget holders, shown hereinafter as • Not kept for longer than is necessary BUDGET HOLDERS (block capitals). A full list is provided in . • Processed in line with the data subject's rights • Secure 1.1.9 The BUDGET HOLDERS may delegate some of their • Not transferred to countries without adequate duties in respect of their financial responsibilities but they protection. remain accountable for all aspects of departmental budgetary control. The terms "budget holder" (normal) or Failure to comply can be a criminal act. “authorised signatory" will be used in this manual to include BUDGET HOLDERS and their departmental staff 1.1.21 The Data Protection Act allows individuals (Data to whom budgetary duties have been delegated. Subjects) to find out what information is held about themselves on computer and some paper records. This 1.1.10 Finance will record all transactions entered into on is known as the right of subject access. behalf of BUDGET HOLDERS and will summarise the transactions in the form of departmental management 1.1.22 Subject access requests should be made to Prof David accounts (see section ). Timms, who is the University College Data Protection Officer. The request must be accompanied by the 1.1.11 In discharging their budgetary responsibilities, designated fee and must be complied with within 40 days. BUDGET HOLDERS must take account of department transactions, whether or not reflected in the figures 1.1.22.1 Data security produced by Finance. It is therefore very important that Finance is informed of any errors or omissions in the 1.1.23 Personal data covers both facts and opinions about management accounts, and that all financial the individual. It also includes information regarding the documentation is passed to Finance at the earliest intentions of the data controller towards the individual. opportunity. 1.1.24 Data controllers must take security measures to 1.1.11.1 Finance office structure and staffing safeguard personal data. The Act requires that data controllers must take appropriate technical or 1.1.12 The Finance Income section is on the ground floor of organisational measures to prevent the unauthorised or West Wing, Main House on the Newton Park site - room unlawful processing, or disclosure, of data. MH G10. This office has a counter service for receipt of income from staff, students and external personnel but 1.1.25 Personal data must be kept securely, used only for its the main function of this office is to process the financial intended purpose and not revealed to a third party, either transactions associated with University College income. intentionally or accidentally. The Finance Purchases section is located in MH B01 in 1.1.26 Security issues include: this office all matters relating to non-cash University • Securing papers in your possession and not allowing College expenditure (other than Payroll) is processed. an unauthorised person to read a paper on your 1.1.13 There is also a small Finance office adjacent to desk Reception at Sion Hill. This office is open only during term • Securing data held on an electronic database time and has a counter service. Detailed budgetary including not allowing an unauthorised person to see enquiries may have to be addressed by Finance staff at data on your PC screen Newton Park. • Not passing personal data to a third party, even if they are related to the data subject without the Bath Spa University College Finance and Accounts Procedures Manual March 2005 Page 1
  7. 7. express written permission of the data subject let to students. Such departments make supplies on unless it is to comply with the stated purpose for which VAT is not payable. Such supplies are known as which the data was collected, or to comply with a exempt supplies. statutory request. 1.1.41 The University College is allowed to claim back, on 1.1.26.1 Data controllers behalf of the department, all the VAT on purchases that can be directly related to taxable supplies referred to in 1.1.27 The University College data controllers are listed in the section . A list of VAT recoverable department codes can Computing Services web pages at be found in . This gives examples of activities where VAT http://www.bathspa.ac.uk/computing/itguidelines/default.h recovery would apply. In such cases the VAT element of tm#data owners. any purchases will be centrally charged and the true cost 1.1.27.1 Data processing of purchases to the department is the net price. 1.1.28 'Processing' is broadly defined and takes place when 1.1.42 The University College cannot recover any VAT on any operation or set of operations is carried out on purchases made by a department supplying only exempt personal data. The Act requires that personal data be services. In such cases the cost of purchases to the processed "fairly and lawfully". department will be the gross price. 1.1.28.1 Compliance 1.1.43 There are special rules for the recovery of VAT on purchases that cannot be directly related to either type of 1.1.29 Prof David Timms is the Data Protection Officer for supply. In such cases, a small percentage can be Bath Spa University College and queries about data claimed back but the cost of purchases to the department protection compliance should be directed to him. will be charged at the gross price. 1.1.43.1 Buying departments and VAT on purchases 1.1.30 VAT 1.1.44 The budget holder should confirm with the supplier that the price quoted includes VAT and delivery to ensure that 1.1.30.1 General the correct level of commitment is shown in the accounts. 1.1.31 VAT or Value Added Tax is a tax on consumer 1.1.45 The budget holder should confirm that a supplier expenditure. It is collected on business transactions that charging VAT has a VAT registration number. Budget involve the supply of goods or services. holders should be aware of whether the VAT on the 1.1.32 As from 1st July 1998 VAT has been charged at three purchases could be claimed back as in section . different rates: 1.1.46 It is important to consider the effect of VAT on costs • Zero rate - i.e. Nil when considering sales pricing policy. If the department • Standard rate - 17.5% is supplying exempt services as in section , then the VAT • Fuel rate 5% (for all domestic supplies of fuel and cannot be recovered. In such cases, the department will power). have to set sales price levels to cover the cost of the irrecoverable VAT. 1.1.33 VAT will affect spending departments when they are purchasing goods from an external supplier. 1.1.46.1 VAT on imports of goods and services 1.1.34 VAT will affect selling departments (e.g. catering, 1.1.47 Supplies of imported goods are liable to import VAT photocopy sales etc.) when they make a charge to a when they are brought into the UK. Import VAT is a student, an external party, or privately to a member of separate tax from VAT charged in the UK and is collected staff. in a different manner. It is generally chargeable at the VAT rate that would be in force if the imported goods 1.1.34.1 Calculation and explanation of terms of VAT were sourced in the UK. In addition to import VAT goods 1.1.35 The net amount is the total of a sales or purchase may also be subject to customs duty and or excise duty invoice before VAT has been added. when they are brought into the UK. These charges must be paid before the goods can clear customs; they are 1.1.36 The gross amount is the total referred to in section normally paid by shipping agents on behalf of the plus VAT at the appropriate rate. College. The shipping agent will then invoice the College 1.1.37 The rates given in section are applied to the net for the various charges. amount charged on an invoice as shown in this example: Imports of certain services (those specified in schedule 5 Invoice Number 0001 Invoice Date XX/XX/20XX to the VAT act 1994) are also subject to VAT using a Bath Spa University College process known as the “reverse charge” where we effectively charge ourselves VAT and recover it as 1 set of fluorescent marker pens 5.20 appropriate. Examples of schedule 5 services are software licences, subscriptions to electronic journals, Net amount 5.20 research, consultancy services, legal services etc. VAT @ 17.5% of net amount 0.91 Total amount (gross amount) £ 6.11 The “reverse charge” is necessary to avoid 1.1.38 In some cases, an invoice will show the gross amount, disadvantaging suppliers of the same goods and services including VAT but will not give the actual VAT amount. in the UK who must charge VAT. The budget holder will Assuming the rate of VAT is 17.5%, to calculate the VAT, bear the cost of the “reverse charge”, unless the you need to take the gross amount and multiply by the department is eligible to recover VAT in full. fraction 7/47 (being 17.5/117.5 simplified). So, in the 1.1.48 The VAT liability of services supplied from other EU example given above, take £6.11 and multiply by 7/47 to countries depends on who is supplying the services and give the VAT charged on the invoice. the nature of the services being supplied. If the supplier 1.1.38.1 VAT and the University College is not VAT registered then no VAT will be due on the supply. If the supplier is VAT registered then certain 1.1.39 Bath Spa University College has a number of different services are deemed to be supplied where performed, departments. Some departments are run commercially, services such as hotel accommodation will be invoiced selling goods and services to external customers. Any with local VAT which cannot be recovered in the UK. If such supplies that attract VAT are known as taxable we source services specified in schedule 5 to the VAT act supplies. 1994 (see above) from businesses in the EU, no VAT will be charged on the suppliers invoice if we provide the 1.1.40 Other University College departments may provide supplier with our VAT registration number. VAT will then education or collect rents from residential accommodation be accounted in the UK by the College using the “reverse
  8. 8. charge” procedure explained above. This is a help to co-ordinate purchasing within the University complicated area of VAT please contact the Deputy Head College with the ultimate goal of making significant of Finance for further information. savings in University College expenditure. 1.1.48.1 Selling departments and VAT on sales 1.1.62 The Buyers Guide gives advice on good purchasing practice, explains the ordering process and offers a 1.1.49 When a sales invoice is raised, if VAT is charged, this complete list of the stock items held in the University has to be collected from the customer and then paid to College shops. You are recommended to make use of HM Customs and Excise by the University College. It is the shops for all purchases of office stationery and therefore important to provide Finance with the following computer consumables. information: • An explanation of the goods and services supplied 1.1.62.1 Purchasing supplies through the University by the University College College shops • Where the supply took place 1.1.63 Goods can be ordered from the University College • To whom the supply was made. This is especially shops by use of an appropriate shop card. The shop staff important if the supply was carried out in Europe will negotiate with suppliers, raise orders and arrange where a European Community VAT number should delivery and arrange payment of suppliers. This be obtained from the customer as proof of the represents a great saving in administration for individual customer’s VAT status. departments. 1.1.50 Please contact Finance for assistance in determining 1.1.64 The shop staff will contact the shop card owner when whether a supply is subject to VAT or not. the goods are received to make arrangements for 1.1.50.1 Detail required for transfer to accounts collection or delivery as appropriate. system 1.1.65 Where arrangements have been made for goods to be 1.1.51 When preparing purchase orders or sales invoice delivered direct from suppliers to departments the request forms, it is important to include as much detail as receiving department must check the quantity and quality possible. of all goods received and ensure that the goods received are in accordance with the original order specification. 1.1.52 The amount of VAT involved in the transaction should The person responsible for receiving the goods in the be clearly stated. school or department should then sign the goods received note and pass this, or any invoice, to the shop 1.1.53 Your purchase orders and sales invoice request forms staff to administer payment to the supplier. are recorded by Finance. 1.1.66 The cost of the goods will be charged to the 1.1.54 Where the amount of VAT is not shown, Finance has department through the appropriate shop card in the to determine whether VAT should be charged. In these usual manner. cases, it is important that the description is appropriately detailed. 1.1.66.1 Purchases by a department other than through the University College shops 1.1.55 Finance department staff will be the final arbiter of the correct VAT treatment pertaining to any transaction. This 1.1.67 Budget holders may order goods by use of an external is necessary to protect the University College from the purchase order as outlined in section below. However harm that an understated VAT liability has the potential to they may be required to justify such orders by proof that cause. prices obtained were generally better than those charged by the shop. 1.1.68 Some goods and services are not formally ordered e.g. 1.1.56 USE OF UNIVERSITY COLLEGE EQUIPMENT utilities, photocopier copy costs etc. Invoices arising from 1.1.56.1 IT Equipment such sources do not require a covering order to be raised to approve payment, the use of an authorisation stamp is 1.1.57 The college does not prohibit the occasional use of its a more efficient and cost effective means of approving IT equipment for personal use, but it should be stressed payment. that such use is at the discretion of the employee's line manager, and any such use must be outside of college 1.1.69 Use of the authorisation stamp should not be used to working hours, (i.e. it is permissible to use the equipment bypass the official order process for goods directly before work begins and at lunchtimes, and after work). ordered from a supplier by telephone or on the internet. It Such use may include use of internet and other windows is imperative that where goods are directly ordered that office software, but is not to include use of college paper an official order form is used as an order both constitutes and consumable resources where such use incurs a contract with your supplier and creates a commitment in additional cost. the Finance system. 1.1.57.1 Telephones 1.1.70 Both manually generated and Dream generated orders are acceptable processes for directly ordering goods. 1.1.58 The College does not allow use of telephones by staff for private calls. This follows the recommendation of 1.1.70.1 Raising an order – online through the Dream auditors and the Inland Revenue as where such use is accounting software allowed by employers it is considered by the Inland 1.1.71 Before issuing an order budget holders should ensure Revenue to be a benefit in kind and therefore taxable. that the University College has a credit account with the chosen supplier. New credit accounts should only be opened with the agreement of the Operations Accountant. 1.1.59 BUDGET HOLDER GUIDE TO DOCUMENT RETENTION 1.1.72 The University College will normally deal only with suppliers whose credit terms allow payment by the end of 1.1.59.1 See table reproduced at . the month following date of invoice. The University College’s preferred method of payment is by Bank 1.1.60 BUDGET HOLDER GUIDE TO PURCHASES Automated Clearing System (BACS). 1.1.60.1 Central purchasing - The Buyers Guide 1.1.73 To enter an order online, you need access to the 1.1.61 The Purchasing Officer maintains a Buyers Guide to Dream financial system. Bath Spa University College Finance and Accounts Procedures Manual March 2005 Page 3
  9. 9. 1.1.74 Departments entering orders on line should first search 1.1.85 Preferred supplier status the supplier ledger to ensure that they select the correct supplier. 1.1.85.1 Where any supplier is used for purchases in excess of £30,000 in any one year the individual 1.1.75 Where no supplier exists Finance Purchases section responsible for the majority of the purchases must staff should be request to raise a new supplier account. make an application for preferred supplier status. Finance Purchases staff will need to know: Where an individual purchase is greater than £10,000 • The correct full name of the supplier and supply is limited to only one or two companies, • The full ordering address thus making the quote / tender procedure impossible • The full address for payments (if known) to follow, the ordering department must make an • Any payment terms and bank details (if known). application for preferred supplier status. To standardise these applications an application for 1.1.76 Order stationery for printing Dream generated orders preferred supplier status form should be used which display the University College terms and conditions supported by a case to justify the continued regular must be used when printing orders for external use. This use of this supplier. Approval, where appropriate, is stationery can be ordered by departments from the given by the Head of Finance. College shop. 1.1.85.2 Staff in the Finance department payments 1.1.77 Please refer to the detailed user manual and training section will monitor use of suppliers to ensure that notes issued with initial Dream training for instructions on preferred supplier approval is sought where use in how to generate an on-line order. any one year exceeds £30,000 and may from time to time approach the budget holder making the most use 1.1.77.1 Raising an order using a paper order form of a supplier to make a case for preferred supplier 1.1.78 Where departments do not have access to Dream status to justify continued use of the supplier. supplies and services may be purchased through the Payments section staff will also monitor the preferred University College manual ordering system. suppliers register to ensure that approvals are up-to- date and appropriate. From time to time they will 1.1.79 All procedures stated in sections to still apply. approach budget holders requesting that they renew their preferred supplier applications. 1.1.80 Paper orders must be raised on an official 4-part BSUC order form or BSUC Ltd order form in the case of 1.1.85.3 In the event that the service or value offered by company orders. Budget holders and budget managers an approved preferred supplier falls below an hold order pads. Replacement pads of order forms are acceptable level the advice of the Operations held by Finance and must be signed for when collected. Accountant should be sought with a view to withdrawing the preferred supplier status. 1.1.81 Order forms must be completed in full; in particular the order must be coded, priced, and signed by the budget 1.1.86 Market testing requirements for approved preferred holder. The supplier's full address is especially important suppliers are as follows: in the case of new suppliers as this information is used to • Annual purchases in excess of £29,999 establish the supplier record. preferred supplier approval must be obtained 1.1.82 The four parts of the order form should be distributed • A single purchase in excess of 75,000 requires as follows: either market testing as detailed in below or White copy Supplier where supply is limited such that market testing Yellow copy Finance – as soon as the order can not be achieved (e.g. sole suppliers or is authorised insufficient specialist suppliers available) Pink copy Budget holder file preferred supplier approval plus three tenders. Green copy Budget holder to use as Goods The tender procedure outlined in below must Received Note (GRN). be followed. 1.1.83 The yellow copy of the order should be sent to the 1.1.87 Market testing limits for other than preferred suppliers Purchases section of Finance as soon as the goods have been ordered. This is to ensure that the order is input as 1.1.87.1 Market testing limits for other than Property committed expenditure against the budget, which allows Services department building contracts are as follows: budget holders and budget managers to assess how A single purchase of much budget remains available to be spent. Up to £9,999 No formal market testing 1.1.83.1 Market testing procedures required Between £10,000 Three written quotes NB: ALL MARKET TESTING LIMITS INCLUDED IN THIS and £29,999 SECTION ARE INCLUSIVE OF VAT AND CARRIAGE From £30,000 up At least three tenders subject 1.1.84 Requirement to obtain good value for money to the EU to evidence of Head of Procurement level Finance approval 1.1.84.1 Because University College spends public Greater than EU Three tenders plus invitation money we have a duty to ensure that we achieve procurement level to tender in appropriate good value for money when purchasing goods and journals. services. Purchasers must be able to demonstrate that a choice of supplier for any given supply or service is based only on the accepted criteria of value 1.1.87.2 Market testing limits for Property Services for money, quality of service, a proven need for department building contracts only are as follows: continuity of service or standardisation. To this end University College has market testing procedures which, when followed correctly, will both supply the necessary proof of market testing and protect the purchaser from any suggestion of improper practice. 1.1.84.2 Market testing procedures apply to all purchases where the total order value, inclusive of VAT and carriage costs, exceeds £10,000 except where the supplier has been granted preferred supplier status. The procedures detailed below are as described in the University College's Financial Regulations and as such are mandatory.
  10. 10. A single purchase of 1.1.89.4 The contract / agreement must normally be let to Up to £9,999 No formal market testing the lowest tenderer after taking into account all required relevant costs relating to acquisition, servicing, Between £10,000 Two written quotes quality, reliability, performance and disposal. and £29,999 1.1.89.5 The reason for accepting any tender other than Between £30,000 Three written quotes the lowest for the purchase of either goods or and £74,999 services must be recorded and held on a Between £75,000 Three tenders with evidence departmental file for a minimum period of two years or but less than the of advertising or rotational where the tender relates to a specific research grant EU procurement tendering on approved list for two years after the end of the research project. level The tender offering the best value from this evaluation Greater than EU Five tenders plus will then be regarded as the successful tender and procurement level advertising in the EU journal. the tenderer will be formally notified of this fact by the Assistant Director. NB these higher limits apply to Property Services department building purchases only. For all other 1.1.89.6 Receipt of goods – online purchases the limits in section apply. 1.1.90 To log the receipt of goods online, you need access to the Dream financial system. 1.1.88 Quote and tender procedure 1.1.91 All deliveries of goods should be checked against the 1.1.88.1 Where market-testing procedures require supplier's delivery note to ensure that the delivery is quotes, the purchaser must obtain a sufficient number complete and against the original order to ensure that the of written quotes. The goods in these quotes must be goods are as ordered. If the delivery is correct then the for comparable supplies / services. order should be marked as received on-line to reflect this. 1.1.88.2 Expenditure expected to have exceed tendering 1.1.92 Please refer to the detailed user manual and training limits requires a formal tender specification to be notes issued with initial Dream training. prepared and “invitation to tender” advertising in appropriate media. Details of the proposed 1.1.92.1 Receipt of goods using a paper based order expenditure should be discussed with the Assistant form Director with responsibility for Estates who will organise the formal tendering procedure. 1.1.93 All deliveries of goods should be checked against the supplier's delivery note to ensure that the delivery is 1.1.88.3 The principle is that the lowest quote or tender complete and against the green copy of the original order should be adopted. Where the budget holder wishes to ensure that the goods are as ordered. If the delivery is not to accept the lowest quote or tender, or where correct then the green copy order should be signed and there has been a failure to obtain the appropriate dated to reflect this. number of quotes or tenders then the budget holder must provide a detailed explanation for this breach of 1.1.94 The green copy order should be forwarded to Finance. Financial Regulations and obtain the written approval If when the invoice arrives in Finance the details match of the Head of Finance. The official waiver form the order Finance will match the two and process the should be used in these cases. invoice for payment. If the invoice and order do not match Finance staff will forward the invoice with the green 1.1.88.4 The financial regulation waiver should not be copy of the order to the budget holder or manager for seen as an alternative to proper compliance with approval of any additional cost or changes to order Financial Regulations. Use of a waiver form is an details. admission of failure to comply with financial regulations and Finance is required to report all such 1.1.94.1 Part deliveries on-line instances to the Board of Governors. 1.1.95 To log the part receipt of goods online, you need 1.1.88.5 Orders requiring quotes or tenders should be access to the Dream financial system. Receipt of part passed to Finance accompanied by copies of the deliveries on-line requires only that the procedure for quotes or a schedule setting out the tenders in a receipt of goods be followed for only those items comparable format to allow Finance Purchases delivered. section staff to assess whether the market testing 1.1.95.1 Part deliveries using a paper based order form requirements of financial regulations have been satisfied. 1.1.96 In the case of part deliveries the green copy order should be marked to show which items have been 1.1.89 Tender opening received. The green copy of the order should then be 1.1.89.1 Tenders should be opened as soon as possible photocopied and signed to indicate that the deliveries after the closing date and time. Financial Regulations included on the invoice are authorised for payment. All require that tenders be opened by two officers, the green copies of the order and photocopies forwarded to Assistant Director with responsibility for Estates and Finance for payment of invoice must bear an original the Deputy Head of Finance, (or in his absence one authorising signature. of the following: Operations Accountant, Systems 1.1.97 The original green copy order should be retained until Accountant, Head of Finance). the order is completed and should accompany the last 1.1.89.2 Each tender should be signed and dated by each invoice or credit note to Finance. NB the green copy officer to witness the tender offer in such a way as to should only be forwarded when all known invoices or preclude any alterations or additions at a later date. credit notes have been received and passed to Finance. The green copy should be attached to the last document. 1.1.89.3 The Assistant Director with responsibility for estates will keep a record of tenders received 1.1.98 If the green copy of the order form is mislaid or sent to showing amounts tendered. This record to be signed Finance prematurely a photocopy of the pink copy of the by both officers opening the tenders and any unused order can be used as a substitute. A new order should portion cancelled to remove the possibility of later not be raised in these circumstances because this would additions. leave the item showing as outstanding against the original order, which will overstate the commitment against the budget and make budget management very difficult. Bath Spa University College Finance and Accounts Procedures Manual March 2005 Page 5

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