The general provisions of the Financial Regulations are set out in sections 1 and 2 below.
1.1 The University is a chartered corporation. Its structure of governance is laid down in the instruments of its incorporation (charter and statutes) for which the Privy Council must approve any amendments. The University Council has ultimate responsibility for the University’s management and administration. These financial regulations form part of the system of internal control and are incorporated into the Standing Orders of Council.
1.2 The University is an exempt charity by virtue of the Charities Act 1993.
1.3 The University’s legal title is "University of Durham" but it trades as "Durham University".
1.4 The financial memorandum between the principal funding body (the Higher Education Funding Council for England – "HEFCE") and the University sets out the terms and conditions on which grant is made. Council is responsible for ensuring that conditions of grant are met. As part of this process, the University must adhere to the HEFCE’s audit code of practice, which requires it to have sound systems of financial and management control.
2 Status of Financial Regulations
2.1 This document sets out the University’s financial regulations which are incorporated into the Standing Orders of Council. It codifies the University’s broad policies relating to financial control. This document was approved by the Council on 7 November 2006. It applies to the University, including all its constituent parts, and all its subsidiary undertakings.
2.2 These financial regulations are subordinate to the University’s charter and statutes and to any restrictions contained within the University’s financial memorandum with HEFCE and HEFCE’s audit code of practice.
2.3 The purpose of these financial regulations is to provide control over the totality of the University’s resources and to provide assurance that the resources are being properly applied for the achievement of the following:
● financial viability
● value for money
● safeguarding assets
● legislative and regulatory compliance
● proper stewardship of public and charitable funds
2.4 Compliance with the financial regulations is mandatory for all employees of the University. A member of staff who fails to comply with the financial regulations may be subject to disciplinary action under the University’s disciplinary procedures. The Council will be notified of a significant breach through the Audit Committee. It is the responsibility of Budget Officers to ensure that their staff are made aware of the existence and content of the University’s financial regulations and receive such training as is necessary to enable them to discharge their responsibilities effectively.
2.5 The Finance & General Purposes Committee is responsible for maintaining a regular review of the financial regulations, through the Treasurer, and for recommending to the Council any additions or changes necessary.
2.6 In exceptional circumstances, Finance & General Purposes Committee may authorise a departure from the provisions of these regulations, any such departure to be reported to the Audit Committee at the earliest opportunity. Any such departure must not contravene restrictions in the HEFCE financial memorandum or audit code of practice.
2.7 The University’s detailed financial procedures will set out how these regulations will be implemented and will be contained in a separate manual available to all staff engaged in transactions with a financial impact.
2.8 Advice and assistance on any financial matters are available from Finance department staff. Contact details are available on the Finance department website.