10. Financial Planning

10.1 The Treasurer is responsible for preparing annually a rolling five-year financial plan for approval by the Council on the recommendation of the Finance and General Purposes and Executive Committees and for preparing a financial strategy and financial forecasts, including capital expenditure, for submission to HEFCE. Financial plans should be consistent with the strategic plans and supporting strategies, particularly the estates strategy, approved by the Council, and be based on detailed plans at faculty or divisional level.

10.2 Budget Preparation

10.2.1 Each year, in advance of the financial year to which they refer, the Deans and Division Heads will propose income and expenditure and capital budgets. The Executive Committee will determine the priorities for expenditure taking into account available funds and the strategic priorities of the University. The Treasurer will prepare budgets, both revenue and capital, on this basis for consideration by the Finance and General Purposes Committee before submission to the Council. These budgets should also include monthly cash flow forecasts for the year and a projected year-end balance sheet.

10.2.2 The Treasurer must ensure that detailed budgets are prepared in accordance with procedures agreed by the Executive Committee for the allocation of income and that these are communicated to Budget Officers as soon as possible following their approval by the Council.

10.2.3 During the year, the Treasurer is responsible for communicating the revised budgetary position (termed the "Latest Approved Position") to Budget Officers following the approval of variations from the original budget. Such variations will include items which, if recognized at budget setting, would have been included in the approved budget but which must not, when taken together, adversely impact on the approved budget surplus.

10.3 Capital Programme

10.3.1 The capital programme includes all expenditure on land, buildings, equipment, furniture and associated costs, whether or not they are funded from capital grants, to be capitalised for inclusion in the University’s financial statements. The University’s capital programme will be approved by the Council on recommendation from Finance & General Purposes Committee.

10.3.2 The Treasurer will establish procedures for the inclusion of capital projects in the capital programme for approval by the Council and also for the preparation and approval of business cases to authorise expenditure to proceed . These will set out the information that is required for each proposed project as well as the financial criteria that they are required to meet and will contain the following levels of approval for business cases:

10.3.3 The Treasurer will also establish procedures for the approval of significant variations to approved projects including, where necessary, the notification of such variations to HEFCE.

10.3.4 The Treasurer will also establish procedures for providing regular statements concerning capital expenditure to the Executive and Finance & General Purposes Committees for monitoring purposes.

10.3.5 Following completion of any capital project approved as a business case, a final report should be submitted to the Executive and Finance & General Purposes Committees including actual expenditure against budget and reconciling funding arrangements where a variance has occurred as well as other issues affecting completion of the project. Where applicable, a post-project evaluation report may also be produced (where such an evaluation has taken place) and submitted to the Executive and Finance & General Purposes Committees.

10.4 Other Major Developments

10.4.1 Any proposed establishment of a company or joint venture arrangement (see section 24.2) or any new business proposal, which will require an investment in buildings, resources or staff time beyond existing budgets or involve a potential financial risk of more than £10,000 should be presented as a business case for approval to the Executive Committee. Proposals above £100,000 will in turn be submitted with a recommendation to Finance & General Purposes Committee.

10.4.2 The Treasurer will establish procedures for these major developments to enable them to be considered for approval by the appropriate committee. These will set out the information that is required for each proposed development as well as the financial criteria that they are required to meet.

10.5 Financial Advice

The Treasurer shall keep the Vice Chancellor, Finance and General Purposes Committee and Council informed of the financial consequences of changes in policy, pay awards, and other events and trends affecting budgets and shall advise on the financial and economic aspects of future plans and projects.

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