11. Financial Control
11.1 Budgetary control
11.1.1 The control of income and expenditure within an agreed budget is the responsibility of the designated Budget Officer, (normally a Head of Department) who must ensure that day-to-day monitoring is undertaken effectively. Budget Officers are responsible to their Dean or Division Head for managing their budgets such that income targets are achieved and expenditure limits are not exceeded. Where appropriate, and conditional on other budgets being satisfactorily controlled, expenditure may include a proportion of additional income generated during the year.
11.1.2 Significant departures from agreed budgetary targets must be reported immediately to the Treasurer and the Executive Committee (via the Dean or Division Head) by the Budget Officer concerned and, if necessary, corrective action taken.
11.1.3 The Treasurer will establish and maintain a system of budgetary control which incorporates the reporting of and investigation into variances from budget. All staff involved in initiating or authorising financial transactions shall comply with budgetary control procedures.
11.1.4 The Treasurer will advise the Training and Development Manager on such training as may be required by Budget Officers and their staff to enable them to operate the procedures relating to budgetary control.
11.2 Financial information
11.2.1 Budget Officers are assisted in their duties by management information provided under arrangements approved by the Treasurer. The types of management information available to the different levels of management are described in the detailed financial procedures, together with the timing at which they can be expected.
11.2.2 The Treasurer is responsible for supplying budgetary reports on all aspects of the University’s finances to the Executive Committee monthly and to every meeting of the Finance and General Purposes Committee. The report shall outline the income and expenditure of the University for the financial year to date, compared with the corresponding Latest Approved Position and Budget and showing a forecast of anticipated year-end values, which is updated quarterly.
11.3 Changes to the approved budget
Changes proposed to the approved budget (apart from variations incorporated into the Latest Approved Position, see 10.2.3) will be considered by the Executive Committee, which will make proposals to the Finance & General Purposes Committee, unless they fall within delegated approval arrangements.
11.4.1 Virement is to be permitted in the following circumstances:
- Across individual non-staff budget headings by the authority of the Budget Officer
- Between Departments or within a Department from non-staff to staff by the authority of the Dean or Division Head.
- Between Divisions by the authority of the Executive Committee.
11.4.2 All agreements for virement should be notified to the Treasurer or her nominated representative for action in approved budgets. All reporting of variances will be by comparison of actual income or expenditure against the Latest Approved Position, although comparison with original budget will also be made.
11.5 Treatment of year-end balances
No balances will be permitted to be carried forward to the next financial year unless income has been received for a specific purpose which has not yet been fulfilled (in which case an appropriate credit balance will be created). All other surplus income will be credited to the University’s Income and Expenditure reserve and will be available for expenditure only if approved as part of the budget setting or virement process - funds specifically earmarked within the University’s Income and Expenditure reserve may be approved for expenditure by the appropriate Dean or Division Head if there is capacity within the approved budget to do so.
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