University College London

FINANCIAL REGULATIONS September 2002 This issue supersedes all previous issues and amendments.

Table of Contents

Accounts and Financial Control Annual Revenue Budget Appendix 1: Retention of Documentation Audit Bank Accounts Capital Expenditure on Property Cash and Cheque Advances College Buildings and Property Disclosure of Interest, Fraud and Irregularity Discretionary Funds Endowments and Donations Expenditure General Hospitality and Gifts Income Index Insurance Internal Control

Introduction Inventions, Patents and Intellectual Property Rights Investments Key to Coding for References to Director of Finance Legal and Professional Advice Ordering of Goods and Services Payments Payroll Petty Cash Floats Private Consultancy Work Quotations, Tenders and Contracts Research Grants, Contracts and Consultancy Agreements Security of Computing Facilities Short Courses Staff Establishment Stocks Stores and Equipment Travel, Subsistence and Other Personal Expenses Claims VAT/Customs and Excise

Key to Coding used for references to Director of Finance ADFA(A) Assistant Director - Financial Accounting (Accounts) 41758 ADFA(T) Assistant Director - Financial Accounting (Trusts) 46584 AP Accounts Payable 46806/46807 C Cashier 32573 DFA Director - Financial Accounting 41655 DFS Director - Financial Systems 46800 DPM Director - Planning & Management Accounts 41654 DRA Director - Research Administration 41776 EurD European Research & Development (R&D) Director 46488 European R&D European Research & Development Office 46469

SFA Secretary - Financial Accounting 41652 TCA Taxation & Commercial Accountant 41659 TreasA Treasury Accountant 41663 UCLb UCL Business 46252 or [email protected] or including CRO Contracts Research Office UCL Consulting UCL Ventures UCL CommD UCL Commercial Director 46500

Introduction This document contains the Financial Regulations, approved by Finance Committee and the Council, which shall apply to the conduct of all financial business of University College London, irrespective of the source of funding. The primary objective of these Regulations is to ensure the proper use of finances and resources in a manner which not only satisfies the requirements of accountability and internal control expected of an eminent Public Institution, but also fulfils any statutory financial obligations as laid down by the Inland Revenue, the Higher Education Funding Council for England (HEFCE), HM Customs and Excise or any other regulatory body. Copies of the Financial Regulations are circulated to all Heads of Departments and their designates for financial management and control purposes. It is the responsibility of all Heads of Department to ensure that staff under their jurisdiction are made aware of the existence and provisions of these Regulations, and that an adequate number of copies are available for reference within the Department. Additional copies of these Regulations (and the Accounting Forms User Guide) may be obtained from the Director of Finance. [SFA]. Compliance with the Financial Regulations is a requirement for all members of staff. These regulations are intended to apply to all College activities but in the case of Medical Institutions which have merged with UCL since 1 August 1995 or will merge within the next few years, it may be appropriate for transitional arrangements, which differ from the standard regulations, to be applied. In these Regulations, "staff" includes all those issued with a contract of employment (whether honorary or substantive) and/or on UCL's payroll and thus includes those paid from general College funds, Research Grants and Contracts, Discretionary and Other Funds.

Staff are reminded that practical help and guidance on the completion of accounting forms for input to the financial accounting system is available separately within the "Accounting Forms User Guide", issued by the Finance Division [SFA]. Please note that any reference to the Director of Finance includes his/her nominated Deputies or other senior staff as indicated in the 'Key to Coding used for references to the Director of Finance' on page 1. Any reference in this document to "Head of Department" shall include all Heads of Department, Heads of Administrative Divisions, and those recognised as such for financial management and control purposes. Similarly, any reference to "Department" shall include all Academic Departments, Administrative Divisions and any other individual Section or Unit of UCL as may be applicable. Finally, if these Financial Regulations do not cover a particular situation or there is any uncertainty as to their application the advice of the Director of Finance or other appropriate Officer should be sought. THE REGULATIONS General 1. These Regulations shall have equal effect with the "Regulations for Management of UCL" and as such shall take precedence over any other College document or publication, should a conflict arise. (The Charter, Statutes and Regulations for Management of UCL, define the role, purpose and authority of both the Council and Finance Committee in financial and other matters). 2. The Chairman of the Council and the Treasurer may, on behalf of the Council and Finance Committee respectively, exercise any of the financial functions of these Committees as they may deem necessary in order to execute urgent and necessary business. Any action taken under this Regulation shall be recorded as "Chair's Action", and will be reported to the next meeting of the Committee responsible. In the event of the absence or incapacity of the Chairman of Council or the Treasurer through illness or other cause, such power may be exercised by the Provost. 3. The Financial Year of UCL is 1 August to 31 July. 4. These Regulations are subject to review at intervals not exceeding three years, as required by the Regulations for Management of UCL. The Director of Finance may, however, at any time submit to Finance Committee for approval (to be endorsed by the Council) such amendments or additions to these Regulations as may be deemed necessary. 5. UCL shall conduct its business and operations to the highest standards of integrity and objectivity, and where possible follow a policy of openness and transparency.

Accounts and Financial Control 6. The Director of Finance shall be responsible to the Treasurer for maintaining all financial records and accounts, both revenue and capital, of UCL. 7. The Director of Finance shall be responsible to the Vice-Provost (Miss Gallyer) for the management, organisation and administration of the Finance Division.

8. The Director of Finance is responsible for:i the provision of financial and related advice on all College matters, including financial control and internal check; ii the integrity of UCL's financial records, systems and source data; iii exercising supervision and control of accounting arrangements and standards throughout UCL; iv the provision of a financial management service to govern, manage and regulate the finances and accounts of UCL, including budgetary control, assets, investments, insurance, and financial resources generally. 9. The Director of Finance [ADFA/ADFA(A)] shall prepare annual financial statements and shall arrange for these to be audited and submitted to the Council by 1 December each year, or as soon after as is reasonably practicable. Finance Committee shall agree, where appropriate on the recommendation of the Audit Committee, the accounting policies as stated in the annual financial statements. 10. The introduction by a Department of any accounting system or procedures which are likely to affect the requirements of Regulation 8 shall be notified to the Director of Finance [DFA] prior to implementation and Heads of Department shall follow the advice of the Director of Finance. 11. Heads of Department are Authorised Signatories by virtue of their position and may nominate up to a maximum of six other members of staff within their Department to act as Aut horised Signatories, unless a higher number is agreed with the Director of Finance [ADFA(T)]. Prior to a nominee(s) signing any document, a completed Authorised Signatories List, obtainable from the Finance Division, must be returned to the Director of Finance [C]. Authorised Signatories Lists shall be confirmed annually and formally updated at least every three years. Separate forms are required in order to set up staff responsibilities on the UCL integrated finance system. Forms must be returned to the FIS Helpdesk. A member of staff must be an Authorised Signatory on the list returned to the Cashier, before he or she can be given Payables Approval responsibility on the integrated financial system. Audit 12. The HEFCE, NAO, External and Internal auditors shall have right of access to records, assets, personnel, premises or any other information in respect of College

activity and to obtain such information and explanation as considered necessary to fulfil audit responsibilities. 13. A continuous Internal Audit function shall be provided in accordance with the requirements of the HEFCE Audit Code of Practice. Internal Control 14. Responsibility for internal control within a Department rests fully with each Head of Department, who should ensure that appropriate and adequate arrangements exist within the Department to safeguard all assets and resources, ensure compliance with College policies and these Financial Regulations, and that records maintained are as complete and accurate as possible and retained securely. 15. All Heads of Department shall ensure that the duties of their staff are segregated so that no individual member of staff records and processes a complete transaction, e.g. no individual member of staff should be responsible for placing orders, receiving deliveries, and passing or approving invoices for payment. Where resources only allow for one member of staff to carry out the administrative duties of the Department, then the Head of Department should at the very least ensure batches are authorised as outlined in Financial Regulation 111 by a different member of staff (ideally by the Head of Department). 16. The Director of Finance [AP] will only process standard accounting forms which have been properly certified and then independently authorised by an Authorised Signatory. 17. Each Head of Department shall ensure that: i any financial management information produced within the Department is reconciled to that produced by the Finance Division; ii the Director of Finance [ADFA(A)] is notified of any significant errors or discrepancies discovered in the information produced by the Finance Division. 18. Each Head of Department shall arrange for financial and other related documents to be retained in a secure and accessible manner for such periods as outlined in Appendix 1. Annual Revenue Budge 19. UCL Budget for the forthcoming year shall be submitted, together with a report thereon by the Director of Finance, to Finance Committee at a meeting no later than June of each financial year. The Budget, Report and Recommendations made by Finance Committee shall be considered by the Council in time for the beginning of the following financial year. 20. The Budget approved by the Council represents the total income and expenditure that is expected to be received or incurred for that financial year. The Finance Division [DPM] shall monitor income and expenditure within each main heading and

report significant variances to each Finance Committee at an early stage. If appropriate, the Council shall be asked to authorise significant variations to budget. 21. The Director of Finance will present to each Finance Committee a financial projection for the current financial year, and at least annually a long-term financial forecast. Discretionary Funds Discretionary Funds shall include all Funds except those covered by: the Departmental Allocation (HEFCE funds); Research Grants, Contracts, Consultancy agreements or other such agreements administered by the Finance Division ; Endowment Funds; and, Short Course funds. For the avoidance of doubt, income from services rendered will be deemed to be Discretionary Funds unless they are administered by the Finance Division when they will be deemed to be Research Grants, Contracts or Consultancy Agreements. 22. The opening of account codes for Discretionary Funds is under the direct control of the Director of Finance [TCA] to whom application should be made in writing indicating the origin of the monies and the purposes to which they will be put. 23. Heads of Department shall ensure at all times that Discretionary Fund accounts do not go overdrawn. 24. Discretionary Funds are deemed to belong to UCL, and are not normally transferable should a member of staff leave UCL's employment. 25. Where income is to be generated from sale of goods or services rendered, Heads of Department shall ensure that the full costs, including indirect costs, are taken into account when setting prices, and that VAT is charged where appropriate. Research Grants, Contracts and Consultancy Agreements 26. The Director of Finance shall arrange for the careful scrutiny of every application for a research grant [DRA] or contract and every consultancy agreement [UCRO/European R&D Office] with baseline costs in excess of £3,000 to ensure that adequate financial provision is contained therein for the employment of staff, the meeting of recurrent expenses and an appropriate level of indirect costs. All such scrutiny shall consider the requirement to levy VAT on the proposed activity. 27. No formal application for a research grant shall be made without the signature of the Director of Finance (or authorised Deputy). In the case of contracts or consultancy agreements, no member of academic staff should enter into any agreement or commitment on behalf of UCL unless prior aut horisation has been received; all bids shall be prepared in consultation with UCRO/European R&D Office and contracts shall be signed by the Director of Finance [UCLCommD/DRA]. 28. UCRO/European R&D Office should be contacted at the earliest opportunity where there is a prospect of any project with UK or overseas industry, European Commission, or central or local government sources. No application for funding from

these sources should be submitted without approval from UCRO/European R&D Office whose responsibility it is to conclude an agreement with a sponsor and to determine whether the terms of any particular agreement are acceptable to UCL. 29. In view of the need to maintain commercial confidence in respect of contracts and consultancy agreements, the costing and pricing of a proposed project, including indirect cost rates, shall not be disclosed to a sponsor without prior consultation with UCRO/European R&D Office. 30. During negotiations for research grants, contracts or consultancies or other such agreements administered by UCRO/European R&D Office, the Head of Department shall consult with: i the Director of Estates & Facilities, to ensure adequate consideration and provision for: a any additional accommodation and/or furniture required; b any building or engineering work required; c any significant increase in the use of water, heating, electricity and any other form of power or energy, or public utility services. ii the Director of Finance, where: a any element of cost of installation or adaptation of premises arises which is unlikely to be met by the sponsor; b full maintenance, servicing and running costs cannot be met from the projected grant or contract provisions; c a continuing financial commitment will exist following the cessation of the grant or contract; d there are increased insurance risks. iii the Superintendent, Biological Services, where the proposed grant, contract or consultancy agreement may be subject to Home Office regulations. iv the Director of Estates & Facilities, where there are special safety, security, or environmental implications. v the Librarian, where it is expected that a high level of demand will be placed upon Library resources. vi other Directors as appropriate, if significant additional costs or implications for UCL are likely to arise within areas under their control. 31. Where the value of a grant or contract is in excess of £500,000, or where the duration of a project is five years or more, the Dean of the appropriate Faculty (or the Vice-Dean where the Dean is also the Head of the applicant's Department) shall

consult relevant Heads of Department and confirm in writing to the signatory to the application (i.e. the Director of Finance, as designated in Regulation 32) that either: i the application appears to make no additional demands on College resources and hence should be approved; or ii the application is likely to make additional demands on College resources. Where the advice given is in the terms of 31 (ii) above, the matter shall be referred to the Planning and Resources Committee for consideration. In the case of the Institutes of Child Health, Ophthalmology and Neurology the respective Deans can approve all applications except those which include: i. a current or future commitment to meet ongoing costs over and above existing budgetary provision and/or above the expected income from confirmed research grants or contracts; ii. a requirement for space or other resources over and above the existing provision. Applications which do include such items must be cleared in advance of any commitment, in writing, with the Vice Provost (Medicine) and the Provost. 32. Applications totalling less than £500,000 in respect of research grants, contracts or consultancy agreements shall be signed by the Director of Finance (or authorised Deputies) only if accompanied by a standard disclaimer letter from the Head of Department, certifying that no commitment involving College general funds arises, unless, where such a commitment does arise, written confirmation as to the adequacy and source of internal finance shall be provided from the Director of Estates & Facilities and/or the Director of Finance (as appropriate). In the case of Medical Institutions which merged with UCL on or after 1 August 1995, the Director of Finance [DFS] ma y authorise a member of Institute finance staff to act as a deputy for the purposes of this regulation and regulation 33. 33. Acceptance of any research grant, contract or consultancy agreement shall be made by the Director of Finance [DRA/UCLCommD], provided confirmation has been obtained that, subject to the information available: i the provision of finance, staffing, and office, teaching or research space is adequate; ii no unduly onerous conditions are contained in the offer; iii no financial commitment will exist after the expiry of the grant, except where Planning and Resources Committee has previously considered and accepted such commitment; iv in the case of contracts , a Project Budget Approval Form has been signed by the Project Investigator and the Head of Department/Dean of Faculty showing the internal budget breakdown; in the case of Consultancy aggrements, a Consultancy Costing and Pricing Proposal (CCPP) signed by the PI and HOD, showing the budget breakdown;

v. where appropriate, a satisfactory company credit status report has been received in respect of the proposed sponsor. 34. No appointment of staff or the commitment of resources by a Head of Department may be made until the research grant has been formally accepted or the research contract or consultancy agreement has been signed. 35. Heads of Department shall be responsible for ensuring that each research grant, contract or consultancy agreement keeps within the limits of the expenditure for direct costs and staffing as specified in the approved estimates for each project and in accordance with the terms and conditions of the contract or consultancy agreement. It will be the responsibility of the Head of Department to meet the cost of any overspends out of Departmental resources. 36. No member of staff shall direct a sponsor to address monies or cheques to themselves, in their own name or to their department in respect of work undertaken on behalf of UCL. Short Courses 37. Heads of Department shall consult with the Director of Continuing Ed ucation, where a charge is made (whether for profit or not) to external bodies or individuals in respect of short courses, conferences, summer schools or other part time or distance learning courses for which there is no equivalent full time course. The Director of Continuing Education will scrutinise proposals to ensure that a proper budget has been prepared and that appropriate overhead charges are included. 38. The Director of Continuing Education shall ensure that at the completion of each course/conference a completion statement is prepared by which financial balances relating to that particular course/conference are transferred to departmental discretionary fund accounts after making appropriate deductions for central overhead costs and in accordance with sharing arrangements laid down by the Director of Finance. In the case of Medical Institutions which merged with UCL on or after 1 August 1995 the Head of the Medical School may delegate the duties under regulations 37 and 38 to an appropriate member of Institute staff. Private Consultancy Work 39. Full time members of staff may undertake consultancy work in a private capacity with the agreement of their Head of Department providing this does not interfere with their duties to College. Where such a commitment on a personal and private basis is accepted staff shall clearly indicate to the external sponsor in writing that they are acting in a personal capacity, and that there is no legal liability on UCL as a result of any advice, information or recommendations given. No use should be made of College stationery or any other title or documentation which could give the impression of College involvement. Heads of Departments shall ensure that staff undertaking private work have provided a suitable disclaimer letter to the sponsor. Staff accepting such private commitments are responsible for their own insurance and personal taxation arrangements.

40. Where College materials or resources (including office and laboratory space) are consumed in the course of private work payment at a commercial rate, inclusive of VAT, should be agreed with the Head of Department. Inventions, Patents and Intellectual Property Rights Note: Work carried out by College staff may give rise to Intellectual Property Rights (IPR). Where such IPR result from work expressly required of a person in the course of that person's employment by UCL or done by such a person specifically under the direction and control of UCL, the rights generally vest in UCL. Intellectual Property Rights include: copyright in works (including computer software and books, but read on for special provisions applying to books); the right to apply for Registered Design protection in relation to designs; and all rights, including the right to apply for patent protection, in any work, design or invention. Notwithstanding the statutory provision whereby the copyright in any work produced by an employee in the course of employment belongs to the employer, UCL normally reassigns ownership of copyright in any work to be published to the author and will waive any claim it may have to benefits arising from publication, with the exception of the following which shall belong to UCL: (i) copyright in course materials produced in the course of employment for the purposes of the curric ulum of a course being run or to be run by UCL and which are produced, used or disseminated within UCL; (ii) copyright in any software programme generated during the normal course of University employment; (iii) copyright in any designs, specification or other works which may be necessary to protect rights in commercially exploitable Intellectual Property. 41. Responsibility for the protection and exploitation of Intellectual Property Rights, including any negotiation with external sponsors in respect of such Rights, rests with UCL and shall be handled by UCL Ventures (within UCL Business), from whom specific details and further information may be obtained. 42. Premature disclosure of any information in respect of an invention can seriously prejudice the prospects for commercial exploitation. It is therefore essential that staff who make an invention or discovery in the course of work within their contract of employment, or whilst specifically under the direction and control of UCL, or engaged in duties for externally sponsored research, or using College staff, facilities, material, etc, should notify their Head of Department in writing, and immediately refer all details to UCL Ventures (within UCL Business). 43. The Director of UCL Ventures (within UCL Business) shall inform the member of staff whether UCL wishes to protect and exploit the invention, and shall advise as to whether any delay in publication of the invention is advisable. Should UCL decide not to take up its rights to exploit, UCL will normally offer to assign all rights in the invention to the member of staff (to exploit in the member of staff's own name and at the member of staff's own expense).

44. Should UCL Ventures (within UCL Business) decide that UCL should protect and exploit the invention, the possibility of obtaining patent protection in the name of UCL will be investigated. Staff who are inventors according to the Patent Office definition shall be named as such on the Patent application. The costs of obtaining Patent protection for inventions and discoveries arising out of contract work, where rights belong to the sponsor, shall be at the expense of the sponsor. 45. Income received from the exploitation of UCL's IPR shall, after deduction of all relevant expenditure incurred through exploitation or protection, including all taxes and employer's staff costs, normally be distributed between UCL, Department and Inventor. In consideration of an Inventor's share, the Inventor shall, at UCL's request, give written confirmation that such IP does belong to College and shall undertake to give UCL reasonable assistance in the protection and licensing of the IP. However, in the case of exploitation through a limited company, the inventor's share would normally be by way of the issue of shares. The Council will, from time to time, lay down guidelines for the distribution of such income but UCL maintains its right to vary the proportionate share of income depending on the circumstances of each case. The inventor shall, at UCL's request, inform College of all external funding received from research sponsors for the purposes of carrying out the research leading to discovery of IP which subsequently is the subject of exploitation. Any revenue sharing arrangements between UCL, Department and Inventor shall be made after any payments made to such external sponsors in respect of their funding. For the avoidance of doubt all research grant and contract terms shall prevail. If there is no licence income to UCL from commercialisation of IP generated under a research grant or contract, then there shall be no revenue to share. 46. Inventions and discoveries made by students are normally assigned to UCL, and income arising therefrom shall be subject to distribution as laid down at Financial Regulation 45 above. Students assigning rights to UCL shall benefit from the protection and exploitation services provided by UCL Ventures (within UCL Business), and any resulting royalty income shall be distributed on the same basis as for College employees. 47. Members of staff shall ensure that any original work, manuscript, data, report, or other written material in which copyright belongs to UCL bears a statement that the copyright belongs to University College London. This should normally take the form of © University College London or © UCL. Endowments and Donations 48. The Director of Finance [ADFA(T)] shall provide Heads of Department with an estimate of income for each endowment fund for which they have control. As soon as possible after each financial year end, Heads of Department will be informed by the Director of Finance [ADFA(T)] of actual income received from investments for the preceding financial year. 49. Heads of Department shall not commit UCL to expenditure in excess of the balance standing on each endowment fund plus estimated income for that financial year.

50. The Director of Finance [ADFA(T)/TCA] shall make arrangements to ensure that donations or gifts are received in the most tax efficient manner, that VAT implications are fully considered, and that the terms of a donation or gift are not too onerous upon UCL or do not result in commitments to expenditure or liability which cannot be met. 51. The Director of Finance [TreasA] shall ensure that tax is reclaimed from covenanted and other similar donations on a regular basis and that adequate records are maintained as required by the tax authorities. Income 52. The Director of Finance shall make and maintain adequate arrangements for the financial organisation, accounting and book-keeping necessary to ensure the proper recording of all sums due to UCL. 53. Each Head of Department shall make and maintain adequate arrangements for the collection, custody, control, disposal, and prompt and proper recording at the time of receipt, of all cash and cheques received, in such manner as advised to be appropriate by the Director of Finance [ADFA(T)]. 54. Each Head of Department shall ensure that all accounts for income due to UCL are raised within fourteen days on an official College sales invoice which provides particulars of all charges to be made for work done, services rendered, or goods supplied by the Department. Sales invoices should be promptly forwarded to the Director of Finance [TCA] for scrutiny, unless alternative arrangements have been agreed in writing by the Director of Finance [TCA], who shall arrange for their despatch. VAT shall be applied where necessary. 55. The Finance Committee will approve the standard tuition fees and residential accommodation fees to be charged to students in each academic year. The Director of Finance shall, where appropriate, approve all other fees and charges levied by UCL although in the case of Bench Fees the responsibility for notifying students of the departmental fee shall rest with the Head of Department. 56. Heads of Administrative Divisions who are authorised to enter into contracts and agreements with third parties for activities under their control are required to promptly notify the Director of Finance of all monies due to UCL under Agreements prepared by them (including contracts, leases, tenancy agreements, agreements for sale of property, and any other agreement which involves the receipt of money by UCL) and at the earliest opportunity shall provide the Director of Finance [DFA] with a copy of each completed document, or sufficient abstract thereof. 57. The Director of Finance [DFA] shall ensure that there are adequate controls over the raising of debts in respect of all College activities (including Student Accommodation, Student Fees, etc.); that all debts are collected promptly; and that outstanding balances are reviewed regularly. An annual report shall be made to the Finance Committee of debts over one year old.

58. Application for the write-off of debts should be sent to the Director of Finance

[ADFA] for approva l. Write-offs in excess of £5,000 shall only be actioned after consideration of a report thereon by the Finance Committee and their subsequent approval. The Director of Finance [ADFA] shall maintain a Register of all bad debts written-off. 59. Every cash sum received on behalf of UCL by a cashier or other member of staff shall be immediately recorded in an appropriate manner. An official receipt or voucher shall be issued to acknowledge the cash received unless alternative arrangements have been agreed with the Director of Finance [ADFA(T)]. Likewise, where money which is accountable to UCL is transferred from one member of staff to another, such transfer shall be acknowledged by the issue of an official receipt or, where appropriate, by signature in a cash accounting record kept by the Department. Cash should only be retained by a department where secure facilities are available and up to the limit provided by UCL's insurance policy as notified by the Director of Finance [ADFA(T)]. 60. Each Head of Department shall make every effort to ensure that all cheques received in respect of their activities, which are accountable to UCL, are made payable to "University College London". Instructions for payment to UCL by BACS should be forwarded to the Director of Finance [TreasA] for signature. 61. Where personal cheques are paid to UCL by staff, students, or others in respect of goods supplied or services rendered, they must be supported by a current banker's card. Where the value of goods exceeds the banker's card limit, the goods must be withheld for a period to allow the cheque to clear. 62. All income received on behalf of UCL in any Department shall be deposited at the Cash Office, provided that in special cases the Director of Finance [DFA] may approve income to be deposited directly with UCL's Bank. 63. All income shall be deposited at the Cash Office (or directly banked if appropriate) not less often than weekly, except where total income received is in excess of £2,000 where it shall be deposited within one working day, and where cash exceeds insurance limits when it shall be deposited immediately. 64. All income shall be deposited intact. Payments shall not be made from income, unless by written agreement with the Director of Finance [DFA]. Personal cheques or other such instruments may not be substituted for cash. 65. The Director of Finance [C] shall arrange for all income received in the Cash Office to be deposited into UCL's Bank Account not less than once daily. 66. All official receipt books, invoices, order forms and other such stationery shall be in a format approved by the Director of Finance [DFS], who will also approve arrangements for ordering, controlling and issuing of such stocks to each Head of Department.

Expenditure 67. Every member of staff authorised to incur expenditure shall ensure that adequate records are maintained to control and monitor expenditure against approved limits and shall seek to achieve value for money in all cases.

68. Heads of Department shall be authorised to incur expenditure provided that it is within the departmental allocation or an approved budget as notified by the Director of Finance [DPM] or available from balances held on discretionary fund accounts or similar, save that: i if it exceeds such sum, an application for supplementary provision has been approved by the Director of Finance [DPM] with an agreed spending plan to eliminate the deficit position; ii in the case of equipment, a sum equivalent to the department's current year's budget may be spent up to one year in advance. 69. The Director of Finance [DPM] shall investigate any instances of unauthorised over-expenditure on a regular basis and agree with the relevant Head of Department action to rectify the situation which may include the virement of other departmental funds. Normally, deficit balances shall only be written off with prior approval of Finance Committee. A summary of departmental account balances, indicating change from the previous financial year, will be reported to the Provost at each financial year end. 70. Each Head of Department shall promptly notify the Director of Finance of any matter involving a significant resource commitment, or potential commitment, including any proposal which has material financial implications, to ensure that such matters comply with recognised accounting policies, procedures, and planning requirements, and that necessary Committee approvals have been obtained. 71. Those areas of College activity which are expected to cover their expenditure costs shall present to the Director of Finance [ADFA(A)] an annual budget and any significant College financial support shall be approved by the Finance Committee. Capital Expenditure on Property 72. Capital expenditure on property, i.e. that relating to the acquisition, construction, adaptation, or improvement of property, shall only be incurred by the Director of Estates & Facilities, when: i) the spending of monies for that purpose from UCL funds relates to a capital budget approved by Council; ii) the spending of monies obtained from the Higher Education Funding Council for England, or any other grant-awarding body or benefactor has been sanctioned by such body, save that the Finance Committee or Estates Management Committee may

authorise expenditure pending the receipt of a Capital Grant where a firm commitment to funding has been received. 73. The Director of Estates & Facilities shall present a progress report on all current capital projects to each meeting of Finance Committee including a final report in respect of completed projects. VAT/Customs and Excise Note: VAT legislation is a complex area with frequent changes and amendments. Anyone who is uncertain as to the correct VAT treatment of a specific item or requires advice on the general principles of VAT should contact the Finance Division [TCA ] or refer to the VAT Guide. 74. UCL is registered for VAT and must charge VAT on any goods or services it provides which do not fall to be exempt or outside the scope. 75. It is essential that Heads of Department refer to the Finance Division [TCA] whenever they undertake any new activities, including provision of services, sales of goods and sponsorship arrangements, in order to obtain a ruling on the liability to VAT. Such a ruling must be obtained before any prices are quoted to customers, contracts signed or any work is undertaken. 76. Where departments are charging their customers VAT on the provision of goods or services, they can recover all the VAT on their purchases and payments that relate directly to those sales. 77. Where departments are involved in activities for which they charge their customers VAT and activities for which they do not, or are a central service department, then a proportion of the VAT incurred on the general purchases and expenses of the department can be recovered. 78. Heads of Department should always ensure that a valid tax invoice is obtained from their suppliers, without which VAT cannot be recovered, where applicable. Details of a valid tax invoice are included in the VAT Guide. If there is any doubt they should refer to the Director of Finance [TCA]. 79. By virtue of its charitable status, UCL is able to obtain zero rating on certain equipment to be used in medical research, training or diagnosis. Individuals signing VAT Zero-rating certificates should ensure that the equipment is eligible for the relief. If there is any doubt they should refer to the Director of Finance [TCA]. 80. Heads of Department should ensure that due consideration is given, when dealing with non-UK customers or suppliers, to VAT regulations applicable to the import or export of goods or services. Orders for imports of goods or services from other European Union countries should quote UCL's VAT Registration Number (GB 524 3711 68). When exporting goods or services to other EU countries, the customer's VAT Registration Number must be obtained and quoted on the sales invoice. UCL may have to account for VAT on a "self-billing" basis on the import of goods or services from the EU and on imports of certain services from other ove rseas suppliers.

If there is any doubt over the application of VAT legislation in this respect, Heads of Department are advised to seek advice from the Director of Finance [TCA]. 81. When purchasing scientific instruments and apparatus from abroad, it may be possible to obtain a certificate of relief from Customs and Excise Duty. Heads of Department should ensure that all applications are made before the equipment is imported and, if appropriate, further advice is sought from the Director of Finance [TCA] . Quotations, Tenders and Contracts 82. When obtaining goods, services or equipment, the following limits apply in respect of quotations or tenders. The formal tendering procedures, as laid down in the UCL Procurement Handbook (as amended from time to time), should be followed, where appropriate. Distinct procedures apply in relation to building works and related services and supplies. £ (Excluding VAT) Requirements i) Under £ 5 000* Competitive quotations should be sought, where it appears that the benefits of competition are commensurate with the administrative and other costs involved. ii) £5,001 - £50,000* At least three competitive tender bids or written quotations iii) £50,001 - £150,000* At least three written competitive tenders. Exceptions may be appropriate where the product is a standard catalogue item, in which case at least three written quotations may be appropriate rather than competitive tender bids. iv) Over £150,000* EC Tendering Procedures apply except for Works contracts where a minimum of three and a maximum of six written competitive tenders shall be obtained (Refer to Estates and Facilities web site). v) Over £3,500,000*Works Contracts Only EC Tendering Procedures apply i To contain the cost to all parties of the tendering process, the tender list should be the minimum number consistent with effective competition. ii Threshold values quoted above are exclusive of VAT. iii These figures refer to the total order value. Like items should be aggregated together in order to obtain best value from the supplier. The European Commission's Supplies and Services Directives have strict rules about aggregation. iv NOTE: It is not acceptable for orders to be subdivided into smaller amounts in order to avoid the appropriate procedures. Where the external purchase of goods, services or equipment in excess of £5000 but below £50,000 is envisaged by a Department (after due consideration of Regulation 92), no less than three written competitive quotations or tenders should be obtained. These should be obtained in writing, held securely and opened at or close to, the same time wherever possible. In addition, whole life costing procedures should also be applied, where appropriate.

The following are exceptions for the need to obtain quotations, where:

a. there is already a formal agreement in place arranged by the Estates and Facilities Division or London Universities Purchasing Consortium (LUPC) or, b. the company selected is a UCL preferred supplier as recommended by the Estates and Facilities Division (Procurement Services), or c. there is an alternative supplier who is able to provide a more economical supply and the Director of Estates and Facilities or Head of Procurement (as appropriate) has been notified in advance, or d. the supply is of such a specialised nature that obtaining competitive quotations/tenders is inappropriate and the Head of Department can justify this view and this is supported by the Director of Estates and Facilities or Head of Procurement (as appropriate), or e. the supply is to be financed by an external source which has imposed alternative arrangements and these are clearly identified, or f. the EC Directives on the procurement of works, supplies, or services apply and a tender process has already taken place to select an approved supplier or group of suppliers. 83. Where, after due consideration of Financial Regulation 92, the cost of the external purchase of goods, services or equipment is likely to exceed £50,000 at least three competitive tenders shall be obtained. (NOTE: If the requirement is a generally available from a catalogue and where the requirement is not complex in nature or in installation/implementation, it may be more appropriate to obtain at least three quotations rather than rather than three competitive tender bids. In these cases the appropriate UCL Terms and Conditions must always be used.) Under special circumstances, the Head of Procurement or the Director of Estates and Facilities, may approve the waiving of these tendering requirements in writing before placement of an order. Waivers may be approved in the following circumstances: i. The supply is of such a nature that obtaining competitive tenders is inappropriate and the Head of Department can justify this view. ii. The supply is to be financed by an external source, which has imposed alternative arrangements. iii. Extreme urgency exists for reasons that could not have been foreseen. iv. The EC Directives for the procurement of supplies and services apply and the formal tender process has therefore already taken place to select an approved supplier or group of suppliers under these procedures. The Head of Procurement or Director of Estates and Facilities will reply within five working days of receipt of such requests. (NOTE: In accordance with Financial Regulation 82, ALL purchases of goods and services over £150,000 are subject to EC Tendering Procedures). Following completion of the tendering process for goods or services in excess of £50,000, special procedures must be followed. The procedures are different for Migrated and Non Migrated departments: i. Migrated departments are those that use the Purchasing Module on the UCL Financial Information System (FIS) and raise purchase orders on line.

ii. Non- migrated departments are those that have not implemented or do not use the Purchasing Module. These special procedures require the completion of a checklist confirming that UCL tendering procedures have been adhered to: i. For migrated departments the order process should be done electronically. ii. For non- migrated departments a special order form has to be obtained from the Director of Financial Systems [DFS]. 84. The acceptance of a tender other than the lowest price shall be reported to the Head of Procurement or Director of Estates and Facilities immediately with appropriate reasons. 85. In cases where a formal contract has to be signed the appropriate Head of Department can sign this for one off contracts up to £50,000, where there is no ongoing commitment, provided that an official order has been issued. Contracts above this figure require the signature of the Head of Department, countersigned by the Director of Estates and Facilities, the Head of Procurement, or a Director from Finance Division, provided that an official order has also been raised for issue. No contract should be signed unless an order has been raised. Where tenders have been accepted in respect of property, building or engineering works or related items, the Director of Estates and Facilities, shall sign contracts and, where appropriate, ensure that the UCL Seal is applied in accordance with the procedures as prescribed in the Regulations for Management of the UCL and the UCL Estates and Facilities Procedures. Property, Building and Engineering Works and related Services and Supplies 86. All tenders and contracts for works or services relating to the acquisition, construction, adaptation or improvement of property or engineering works, however financed, shall be administered in accordance with the HEFCE guidance procedures, the European Community Works Directive and the Estates and Facilities Division's procedures manual. In view of the likely VAT consequences of any building or engineering works, the Director of Finance [TCA] should be consulted where appropriate at the pre-tender stage. In this way, any adverse VAT consequences might be avoided by careful planning.

87. The Director of Estates and Facilities shall notify the Director of Finance as soon as possible after any building contract in excess of £50,000 has been placed. When the building contract has been signed by all the relevant parties, the Records and Administration Manager shall document details of the Agreement in the Contracts Register. 88. Where architects or consultants are commissioned, they shall be instructed that all expenditure incurred, including additional expenditure arising from variations made during the progress of the work, must not exceed the approved budget for the Project unless previously authorised, in writing, by the Director of Estates and Facilities.

89. During the term of a contract, the building document signed by the parties involved, together with the drawings, bills of quantities, and/or specifications forming part of the contract shall be kept by the Director of Estates and Facilities. On completion of the contract, the Director of Estates and Facilities shall deliver the documents to the Records Manager. 90. Before an architect or consultant issues the final certificate, the final account and other related documents may be referred to the Dir ector of Estates and Facilities for such examination as he may consider necessary.

Ordering of Goods and Services

91. Each Head of Department shall ensure that equipment, goods and services are obtained economically and on the most advantageous terms following the appropriate UCL Tendering and Ordering procedures as laid down in the guidance issued by the Director of Finance and in accordance with the guidance given in the UCL Procurement Handbook (see Regulations 82-90) and the requirements of the appropriate EC Directive and the UCL Estates and Facilities procedures for the acquisition, construction, adaptation or improvement of property. 92. Departments shall order from central bulk-purchase sources, [e.g. Estates and Facilities Division, Facilities or Procurement Services etc.,] or by reference to UCLwide contracts established by Procurement Services, unless advantage can be shown otherwise. Many of these contracts will have been arranged under the strict procedures of the EC Directives, therefore under this legislation, they are legally binding. 93. Prior to placing an order, the Head of Department shall ensure that: i. the cost can be met from within an approved budget, allocation or departmental credit balance; ii. the order complies with UCL purchasing policies, relevant European Community Directives on the purchase of works, services, or supplies, and UCL Financial Regulations; iii. all relevant costs (including purchase, VAT, delivery, installation, storage, operating, servicing, maintenance, disposal, and contract conditions) have been properly considered. 94. Each Head of Department shall ensure that an official UCL order form is prepared at the time the order is placed, in respect of all internal and external orders for equipment, goods and services with the exception of petty cash purchases, UCL Purchasing Cards, utility services and building works, subject to standard contract. 95. The following information must be recorded for each order form issued: a description of the goods or services required, cost (and any discount) including VAT, quantity, date and place of delivery, and relevant account code. The completed order form shall be signed by an Authorised Signatory, or authorised on line by an

appropriate member of staff, if the order is raised on the approved UCL integrated finance system. 96. The Director of Finance [DFA] shall arrange to review, at intervals not exceeding five years, the provision of the following services: banking, insurance, external audit and investment management. 97. Authorised Signatories may authorise the issue of a UCL order for goods and services up to £3,000 intended for personal use of staff on condition that payment is made by that staff member immediately on delivery of the goods or services. In all cases, consideration shall be given to the correct treatment of VAT. Stocks, Stores and Equipment 98. All Heads of Department are responsible for maintaining suitable records and applying strict controls over all stocks, stores and equipment within their custody, including arrangements for recording equipment on loan or located at the home of an employee. 99. A delivery note must be obtained from the supplier for all deliveries. The goods should be checked as regards quantity at the time of delivery and the quality and compliance with the original order as soon as possible thereafter. 100. Each Head of Department shall maintain an inventory of all computer and ancillary equipment, irrespective of cost, and any other equipment costing in excess of £2,000, detailing Date of Purchase, Cost, Description, Serial Number, Supplier, Source of Funding, and Location. 101. At the time of purchase, Heads of Department should provide details to the Director of Finance of all items of equipment and furniture costing in excess of £25,000 in a format as laid down by the Director of Finance [ADFA(A)]. 102. Each Head of Department shall ensure that physical stock and inventory checks are carried out annually or more frequently where the stockholding is of a high value or of an attractive nature. 103. Each Head of Department shall arrange for the completion of an annual stocktaking record in respect of all stocks and stores under the Department's control as at 31 July each year, certifying that the particulars shown are correct and, where the value exceeds £10,000 in total, shall forward the signed record to the Director of Finance [ADFA(A)]. 104. Issues of stores internally shall be supported by an Inter-Departmental Order or official requisition order signed by an Authorised Signatory, sho wing the quantity of the goods issued and the account to be charged. 105. The Director of Finance [ADFA(A)] shall arrange random checks of stocks and stores as considered necessary.

106. Each Head of Department shall ensure that significant surpluses, deficiencies, or losses of stocks, stores, and inventory items are reported immediately to the Director of Finance [ADFA(A)], who shall report as appropriate to the Provost. 107. Any Assets (including stores, furniture and equipment) deemed to be surplus to requirements or obsolete shall not be disposed of by sale or destruction except upon: i the authorisation of the Head of Department where, in the view of the Head of Department, the estimated market value is less than £1,000, with advice to the Director of Finance [ADTI]; ii the authorisation of the Director of Finance [DFA] where the estimated market value is between £1,000 and £10,000; iii the authority of Finance Committee where the estimated market value exceeds £10,000. All sales transactions will be subject to VAT. Payments 108. Every purchase invoice shall be checked to ensure that the goods or services have been received in accordance with the original order as regards description, cost, quantity and quality, and signed by the member of staff responsible for this check. (The Director of Finance (DFS) may agree special arrangements where approval is given electronically on the UCL integrated finance system.) 109. A Batch Control Slip must be completed for each document or group of documents (i.e. invoices, expense claims, etc) being submitted to the Finance Division [DP] for payment. The Batch Control Slip requires the signatures of two staff to certify and authorise the total number and value of documents shown on and included in the batch. (The Director of Finance [DFS] will agree special arrangements where data is transferred electronically. Invoices and other payment documents are authorised on line if the Department is using the approved UCL integrated finance system, and in these circumstances batch control slips require only one Departmental Signature and this does not have to be by an Authorised Signatory.) 110. The certification of a Batch Control Slip, or the approval of any document on line on the integrated finance system, shall mean that the member of staff responsible for preparing the batch for authorisation is satisfied that: i the goods have been duly received and approved in accordance with the original order or contract as regards description, price and quantity, and are of acceptable quality; ii the work or services rendered have been satisfactorily carried out, materials used were of the requisite standard, and charges are correct; iii the expenses being claimed are supported by original receipts or conform to the requirements laid down for claiming expenses paid on a per diem basis;

iv each document is arithmetically correct; v each document included has not previously been passed for payment. To comply with the above, staff certifying the batch should ensure that all documents presented for certification are supported by relevant supporting documentation. To this end they should be presented with the original invoice appropriately marked in accordance with Financial Regulation 108, a copy of the original order, and the goods received/suppliers delivery note; or ensure that a suitable system is in place within the Department to satisfy these requirements. 111. The authorisation of a Batch Control Slip shall mean that the Authorised Signatory is satisfied that: i the batch has been properly certified; ii the nature and extent of expenditure is in accordance with the requirements of the Department and complies with general College policy and these Regulations; iii there are sufficient funds available to meet the costs incurred. 112. It is recommended that payment before delivery of goods or services is resisted. However, where such advance payments are customary because of the nature of goods or services to be supplied, Heads of Department should ensure that appropriate guarantees are provided by the supplier. In the case of large payments the advice of the Head of Procurement should be sought. 113. All batches duly authorised by an Authorised Signatory and all certificates for payments under contracts shall be forwarded to the Data Processing Section - Finance Division - without delay, and certainly in adequate time for payment to be made to secure any discounts. In the case of requests for payment in foreign currency, these should be sent separately to the Director of Finance [TreasA] with accompanying backup documentation, together with a completed bank transaction form (i.e. bank draft, SWIFT payment) if appropriate. 114. The Director of Finance [AP] may make such checks and examine such batches submitted for payment as considered necessary, and will not process any batch which includes a document or documents that are: i presented with incomplete, inaccurate, illegible or incorrect documentation; ii supported by a Supplier's Statement and not an invoice; iii supported by a photocopy of an original invoice (unless certified that the original has been lost and clearly marked "COPY"). 115. The Director of Finance [TreasA] may approve arrangements for ordering goods and services by way of a charge card and settling the debts so arising by automatic bank debit.

116. No member of staff shall prepare or complete an invoice on behalf of a supplier. In exceptional circumstances, staff may request the permission of the Director of Finance to invoice UCL personally. Travel, Subsistence and Other Pe rsonal Expenses Claims 117. All claims for reimbursement of expenses incurred by an individual in the course of College related business must be supported by official receipts or some other valid form of supporting documentation, providing details of the purpose of expenditure, duly signed by the claimant and an Authorised Signatory. 118. Staff cannot authorise their own expenses claim form. Authorised Signatories shall have their personal expense claims countersigned by the Head of Department; Heads of Department shall have their personal expense claims authorised by the Faculty Dean, the Institute Dean, a Vice-Provost or a Pro-Provost. Faculty Deans, Institute Deans, Pro-Provosts and Heads of Administrative Divisions shall have their personal expense claims authorised by a Vice-Provost. Vice-Provosts shall have their personal expense claims authorised by the Provost and the Provost shall obtain the authorisation of the Treasurer or Chairman of Council. 119. Personal expense claims must be presented for reimbursement within three months of the expenditure being incurred, and will generally be reimbursed by cheque. Cash reimbursement will only be made at the Cash Office where the sum total of expense claim forms submitted by an individual does not exceed £50. 120. Requests for reimbursement of all travel and/or subsistence expenses should be made on the appropriate form and shall normally be supported by evidence of expenditure (e.g. receipts/invoices) and details of the purpose of expenditure. Individual claims up to £20 may be recovered through a Department's petty cash float providing the expense is charged to the standard travel account code. Wherever possible local travel should be by public transport, although taxi fares will be reimbursed at cost where necessary. 121. Reimbursement for travel within the United Kingdom shall be at the appropriate "off-peak" or standard rail fare, unless it can be shown that there are specific, valid reasons for travel by other means. 122. Where regular or occasional use of a personal vehicle is required for employees to discharge their duties effectively (not including travel to and from their usual place of work), reimbursement will be at the Inland Revenue tax- free mileage rates as published from time to time. Travel between home and work is not normally reimbursed and should be excluded from any claim. 123. All Overseas Travel requirements and Air Travel within the United Kingdom should be booked through UCL's recommended Travel Agents unless advantage can be shown otherwise, and be supported by an official College Order Form. All bookings should be for economy class travel, unless it can be shown that there are specific, valid reasons for travelling at a different class.

124. Unless the travel arrangements form part of a research grant application approved by a research sponsor, reimbursement for travel overseas should be authorised by the Head of Department. Deans and Heads of Academic Departments shall return details of their overseas travel, within one month of their return, on the prescribed form, for subsequent scrutiny by College Officers. The Provost, ViceProvosts, Pro-Provosts/Special Advisers and Head of Administrative Divisions and their staff shall obtain authorisation (at an appropriate level, as specified in Regulation 118), prior to travelling. 125. Actual costs relating to subsistence within the UK, supported by evidence of expenditure, will be reimbursed up to the maximum limit as advised by the Director of Finance [ADFA(A)] from time to time. 126. Reimbursement of subsistence relating to overseas travel will be either at actual costs up to a maximum allowance as authorised by the Head of Department prior to travel for which full receipts must be produced or at the agreed per diem rate as approved by the Inland Revenue from time to time and authorised by the Head of Department. Cash and Cheque Advances 127. All types of advance, including cash, cheque, and foreign currency, shall be made at the discretion of the Director of Finance [DFA], or in the case of salary advances the Human Resources Director, who shall ensure that adequate control is exercised over such matters. 128. Staff in receipt of an advance shall, subject to whether the basis of a claim shall be the actual costs or per diem allowance, provide the Director of Finance [ADFA] with a return of expenses in the required format, with any unspent monies, by the due date. Failure to do so will jeopardise any subsequent advance requests from the Department concerned, and may also result in the advance being referred to Payroll for the deduction of income tax. Petty Cash Floats 129. The Director of Finance [TreasA] shall maintain an imprest account of such amount as may be required for making departmental petty cash float advances and for petty cash payments. 130. The Director of Finance [ADFA(T)] may provide Heads of Departments with a petty cash float, for the purpose of defraying minor expenses incurred by staff on departmental activity. A receipt shall be signed in respect of each float advance by the member of staff concerned, who shall be held responsible to account for and arrange safe custody of the float. 131. Heads of Department shall ensure that adequate security arrangements are in place to hold petty cash floats. Maintenance and operation of the departmental float shall be in accordance with procedures laid down by the Director of Finance [ADFA(T)] and failure to comply may result in the facility being withdrawn.

132. Under no circumstances shall a petty cash float be used to reimburse personal expenditure, payments of wages or salaries, temporary loans to staff or students or to cash cheques. 133. Vouchers or receipts for petty cash disbursements shall be obtained, carefully preserved, and forwarded to the Cashier with the departmental petty cash float Reimbursement Form, duly reconciled and authorised by an authorised signatory. No individual payment out of a Departmental petty cash float shall exceed £20. Hospitality and Gifts 134. All unsolicited goods, vouchers, or payments received from suppliers or their agents (i.e. anything other than goods and services officially ordered) are the property of UCL. Where the value of such a gift exceeds £25, the member of staff is required to inform the Director of Finance [ADFA(A)] immediately. 135. Hospitality received which goes beyond refreshment appropriate to the circumstances shall be declared to the Director of Finance [ADFA(A)]. 136. The Director of Finance shall maintain a Register of notified hospitality and gifts received. 137. On those occasions where hospitality is provided to visitors or to members of staff, expenditure should be reasonable and appropriate to the circumstances, and wherever possible in- house catering facilities should be used. Disclosure of Interest, Fraud and Irregularity 138. Members of staff shall advise their Head of Department of all external work and private consultancies undertaken, including appointment as company director. Heads of Department shall also be notified of relationships where a conflict of interest may exist or occur. Heads of Department shall maintain a confidential record of such commitments, and shall advise the Provost if they consider such commitments are in danger of becoming excessive. Heads of Department shall introduce appropriate controls to avoid potential conflict and shall advise the Provost of such commitments of their own. 139. All staff shall declare to the Director of Finance: i any significant share holding or material interest which they have in a business which may (or does) supply or trade with UCL; ii any matter which might reasonably be deemed by others to encroach on impartiality; iii any personal, financial or other beneficial interest an individual, including a close relative or partner, may have in any financial arrangement or trans action with UCL. 140. The Director of Finance shall maintain a register of disclosures of interest.

141. Staff shall not authorise expense claims, invoices or other similar documents received from close relatives or partners but shall ensure these are signed by an alternative Authorised Signatory. 142. Any member of staff who becomes aware or suspects any form of financial irregularity in respect of accounting, security of assets, or financial transactions is required to inform immediately their Head of Department, who in turn shall report all such incidents to the Director of Finance, or if appropriate, the Director of Finance directly. The Director of Finance shall promptly report such irregularities to the Head of Internal Audit. 143. Where a financial irregularity appears to involve a criminal act and/or a disciplinary offence, the Director of Finance shall report the matter to the Provost to agree the appropriate course of action. 144. The Director of Finance shall inform the Audit Committee of fraudulent activity resulting in a loss to UCL in excess of £10,000. Staff Establishment 145. The Director of Finance [DPM] shall ensure that an up-to-date record of the HEFCE funded staffing establishment of UCL is maintained, as approved by the Provost. 146. The Director of Finance [DPM] shall ensure that each Head of Department annually confirms the Department's HEFCE funded staff establishment, including staff in post, and that such details are reconciled with the payroll records. 147. Heads of Department shall obtain written approval from the Provost, via the Director of Finance [DPM], prior to seeking to recruit staff as part of or as an addition to the approved HEFCE funded establishment. 148. Heads of Department shall, in conjunction with the Human Resources Director, follow approved recruitment, advertisement and selection procedures. In particular no offer of appointment may be made without the formal approval of the Human Resources Director. For the avoidance of doubt, where appointments are to be fund ed from Contracts, no offer of appointment either verbal or written shall be made until the Contract or Grant is formally signed. 149. All letters of appointment shall be signed by the Human Resources Director, or persons designated by him in writing, and if appropriate, shall clearly state that the offer is made subject to UCL receiving satisfactory references. 150. Heads of Department shall ensure that appropriate written references are obtained before a member of staff completes their probation period, except that, where the duties of the post involve significant cash handling, two written references must be obtained before the appointee commences employment. References for Academic staff should normally be taken up before an appointment is made.

151. The Human Resources Director, on behalf of the Provost, shall approve the nonpay conditions of service and terms of contract for all appointments of staff, and shall ensure that the terms of contract impose an obligation upon employees to be bound by these Financial Regulations. Applications to promote or regrade a member of staff should be directed to the relevant Committee, via the Human Resources Director. 152. The Human Resources Director, or persons designated by the Human Resources Director in writing, shall be responsible for the safe custody, maintenance and control of the personal file of each member of staff. 153. Each Head of Department shall maintain appropriate records of staff, formally recording all absences in respect of annual leave, special leave, unpaid leave, and notifying the Human Resources Division where required. Staff whose contract of employment specifies an annual leave entitlement should take in full their leave entitlement within the leave year, unless otherwise agreed by the Head of Department. 154. The Human Resources Director shall be responsible for maintaining records in respect of absence through illness, injury, or other such enforced absence, and ensure that sickness payments, maternity benefits, etc, are paid in accordance with contractual and statutory requirements. Payroll 155. Payment of all salaries and wages shall be made through the Salaries and Wages Section of the Human Resources Division. Payments to staff (permanent and temporary) shall be at approved salary or wage rates. Payments to individuals other than College staff shall be supported by adequate evidence of work performed, and approved by an Authorised Signatory. 156. All non-recurrent payments to members of staff (including overtime, consultancy fees, ex-gratia payments, etc), or other individuals (including visiting lecturers, external examiners, students, models, casual labour, occasional clerical or secretarial support, etc), which are deemed to be remuneration for work done or services rendered, must be processed through the Salaries and Wages Section, and shall be supported by adequately certified documentation, signed by an Authorised Signatory (except that staff cannot authorise payments to themselves, in which case the provisions of Financial Regulation 118 will apply, mutatis mutandis). Such payments are subject to deduction of income tax and national insurance, unless exemption has been obtained from H M Inspector of Taxes or NI Contributions Agency. 157. The Salaries and Wages Section shall not include on UCL Payroll any new appointment unless it is supported by a copy of the letter of appointment signed by the Human Resources Director or designate, together with an accurately and correctly completed Staff Record Form. 158. Heads of Department shall immediately notify the Human Resources Division of the resignation of any member of staff or where any newly appointed member of staff does not commence work on the given start date. Bank Accounts

159. The Director of Finance [DFA] shall open and maintain the bank accounts needed to conduct properly the business of UCL. Finance Committee shall review annually such accounts and the signatories who may operate them. 160. The Director of Finance [ADFA(A)] shall ensure the reconciliation of all bank accounts on a monthly basis, by persons other than those whose responsibility includes the handling of receipts and maintaining accounts receivable records. 161. No member of staff may open a bank account for College related activity nor use the name of UCL or its departments. 162. Cheque signatories shall take such steps as necessary to satisfy themselves as to the validity of payments proposed, and to satisfy themselves that proper procedures have been followed to ensure that payment requests are supported by properly checked, approved, and appropriate documentation. 163. The Director of Finance shall ensure that proper control is exercised over unused [AP] and cancelled cheques [TreasA]. Investments 164. The Investments Committee shall make arrangements and be responsible for the long term investment of the funds of UCL or of the associated Trusts and shall report to Council via Finance Committee. 165. The Director of Finance shall be responsible for arranging short term deposits of College funds on a daily basis with due regard to any restrictions imposed by Finance Committee. 166. The Director of Finance shall monitor on a monthly basis expenditure from departmental accounts and in particular departmental requisitions for orders in excess of £50,000. In managing the cash resources of UCL, the Director of Finance shall take into account the requirements of departments but shall be authorised to delay or deny funding requests where cash resources do not permit. Insurance 167. All insurances of UCL shall be under the direction and control of the Director of Finance [ADFA(T)], who shall be responsible for all liaison and negotiations with insurance brokers. 168. The Director of Finance shall arrange for a periodic review of risk management and insurances to identify the nature and extent of risks and the appropriate actions including insurance and/or risk reduction. 169. The Director of Finance [ADFA(T)] shall keep a register of all insurances effected by UCL and the property and risks covered. 170. Heads of Department sha ll ensure that all insurance cover requirements are arranged solely through the Director of Finance [ADFA(T)]. Claims for

reimbursement of expenditure pertaining to any other insurance will only be paid at the discretion of the Director of Finance [ADFA(T)]. 171. Heads of Department shall immediately notify the Director of Finance [ADFA(T)] of any new types of risks, new premises, or equipment valued in excess of £100,000, to be insured together with the amount of cover required and, further, shall notify any change in circumstances which may affect existing risks and insurances. 172. Heads of Department shall advise the Director of Finance [ADFA(T)] immediately of any loss or circumstance which may give rise to an insurance claim. All claims shall be prepared by the Director of Finance [ADFA(T)], in conjunction with the Head of Department, for submission to the insurers. 173. Heads of Department shall not give an indemnity to any person unless its terms have been approved by the Director of Finance [ADFA(T)]. 174. The Director of Estates & Facilities, and where appropriate any other Head of Department, shall advise the Director of Finance [ADFA(T)] of occasions when the reliance on a proposed contract for goods, building works, services, or maintenance may justify the cost of providing against default; for example by requiring a supplier or contractor to secure a performance bond. 175. All monies due and received from insurers shall be paid to the Director of Finance [ADTI] for credit to a College bank account. 176. The Director of Estates & Facilities shall keep suitable records to ensure that the inspection of such plant which is normally carried out by an Insurance Company, is carried out by the Company within the prescribed period. In the event of any failure by an Insurance Company to carry out inspections during the prescribed period, the Director of Finance [ADFA(T)] shall be notified immediately. Legal and Professional Advice 177. The prior approval of the Finance Committee is required in respect of expenditure incurred in obtaining legal and professional advice above £50,000. Approval to proceed with litigation is also required where the financial risks exceed this limit. College Buildings and Property 178. The Director of Estates & Facilities shall ensure that suitable arrangements are in place to secure custody of all deeds and agreements relating to land and buildings owned or leased to or by UCL. 179. No charge shall be applied against any assets of UCL without the prior approval of the Council. 180. No land or buildings of UCL shall be disposed of without the prior approval of the Council and, where appropriate, the Higher Education Funding Council for England.

Security of Computing Facilities 181. Each Head of Department shall ensure that all staff and students are made aware of and adhere to the Computing Regulations issued by the Information Systems Division. 182. The Director of the Information Systems Division shall ensure that a disaster recovery plan is prepared and regularly reviewed in respect of critical computing areas within UCL. Appendix 1 APPENDIX TO Regulation 18 The documents referred to below should be retained for the periods shown, in addition to the current Financial Year: Document Copy Orders Suppliers' Delivery Notes Till Rolls Stores' Requisition/Issue Notes (incl. Cancelled Notes) Copy Official Receipts

Years 2

Held By Disposal D N

2 6

D D

N N

2

D

N

6

D

N

6

D/A

N

2

D/A

N

6

D/A

N

2

D/A

C

Monthly Transaction Prints (microfiche)

Indef.

A

N

Suppliers' Paid Invoices Sundry Debtors Accounts Control Account Print-outs

6 6 6

A A A

N C C

Control Account Reconciliations

6

A

C

Paid Cheques Bank Statements and Supporting Docs

6

A/B

C

6

A

C

Bank Reconciliation Statements

6

A

N

Records of Purchase Invoice Batches Inter-Departmental Orders/Invoices Copy Pay-In Slips (incl. SREC/SREN) General Correspondence (not Central Files)

Credit Transfer Listings Cancelled Cheques

6 6

A A

C C

Stopped Cheques Opened Cheques' Letters

6 6

A A

C C

6 (Min) Indef.

A A

C C

Indef.

A

N

10

A

N

Income Tax Records Payroll - Input Forms Payroll - Output 6 A C

6 6 6

A A A

C C C

Payroll - Annual Earnings Summary

12

A

C

2 6 Indef.

A A A

C C N

6

A

N

12 (Min)

A

C

6

A

C

Insurance - Correspondence Insurance - Policies Finance Statistics' Return (Form 3) Final Account Working Papers

Employees' Time Sheets 2 A C VAT Records 6 A C VAT Returns Indef. A C Journal Transfers 6 A N Contract Documents - under seal Contract Documents - other

Key: D = Held by Department A = Held by relevant Administrative Division B = Held by Bank C = Treat as Confidential Waste for disposal purposes N = Treat as Non-Confidential Waste

Index Reference Accounting Forms Accounting Systems Account Reconciliation's Allocations and Budgets Annual Financial Statements Annual Leave Annual Revenue Budget Applications for Grants or Contracts Audit

Regulation No. 16, 66, 109 - 112 10 17, 133, 160 19 - 21, 35, 37, 48, 49, 67 - 69, 71, 88, 93 9 153 19 - 21 26 - 32 9, 12 -13

Authorised Batches Authorised Signatories Bank Accounts Batch Certification Batch Control Building Contracts Building or Engineering Works Capital Expenditure Car Allowance Rates Cash Reimbursement . Cash and Cheque Advances Cash and Cheque Advances Casual Labour Central Bulk Purchase Central Indirect Costs Chair's Action Charge Cards Charges on Assets Cheque Advances Cheques Received Clinical Trials College Property Computer Security Consultancy Agreements Continuing Education Contracts for Purchase Customs and Excise Debts Director of Finance

Disclosure of Interest Discretionary Funds Disposal of Financial Records Disposal of Equipment Disposal of Land and Buildings Endowments and Donations Equipment

16, 109, 110 11, 76, 77, 97, 118 159 - 163 109, 110 109, 110 30, 56, 72, 73, 85 - 90 85 - 90 70, 72, 73, 101, 102 122 119, 128 - 133 127, 128 52, 53, 59 155, 156 92 38 2 115 179 127, 128 52, 53, 60 - 65 26 - 36 178 - 180 181 - 182 26 - 30, 32 -36 37 - 38 82 - 90 74 - 81 52 - 58, 155 4, 6 - 11, 16 - 17, 19, 21 - 22, 26 - 27, 30, 32 - 33,38, 48, 50 - 60, 62, 64 - 66, 68 - 72, 75, 79 81,83 - 87, 91, 96, 101, 103,105 - 107, 109,113 - 116,125, 127 - 131, 134 - 136, 139 - 140, 142 - 147,159 - 160, 163, 165 - 176 138 - 140 22 - 25, 38 .Appendix 1 107 180 48 - 51 68(ii), 79, 81 - 83, 91, 94, 98, 101, 107,

Equipment Zero Rating Establishment Ethical Code European Research & Development(R&D) Office Ex-gratia payments Expenditure External Work Fees Financial Control Financial Forecasts Financial Records Financial Year Fixed Assets Foreign Payments Fraud and Irregularity Furnishings Future Commitments Gifts Received Heads of Department

Hospitality Import and Export Income Indemnities Insurances Intellectual Property Rights Internal Control Internal Audit Inventions Investments Invoices, Personal Legal and Professional Advice New Financial Systems Ordering Outside Work Overdrawn Accounts Overseas Travel Overtime

171 79 34, 145 - 154 5 28, 30 156 67 -71 39 - 40, 138 55, 57, 156 6 - 11 21 6, 8(i), 18 3, 19, 20 - 21, 48 - 49, 69 100, 101 113 142 - 144 30, 92 33, 50, 70, 173 134 - 137 10 - 11, 15, 23, 25, 31, 35, 37, 39, 48 - 49, 68, 75, 78, 80 - 81, 98, 101, 112, 118, 130 - 131, 138, 147 - 148,150, 158, 170 - 173 134 - 137 80, 81 25, 36, 52 - 66 173 30, 39, 167 - 176 41 - 47 14 - 18, 52, 98 12, 13, 142 41 - 47 164 - 166 39 177 10 91 - 107 26 - 36, 39 - 40 23 123, 124, 127 - 128 156

Patents Payments Payroll Per Diem Allowances Personal Expense Claims Personal Cheques Petty Cash Floats Private Consultancies Probation period Purchases Quotations Quotations Tenders and Contracts Receipts References Recruitment Remuneration Research Grants, Contracts and Consultancies Salaries and Wages Sales Invoices Security of Assets Segregation of Duties Services Rendered Short Courses Sickness Special Leave Staffing Stocks Stocktaking Stores Storage of Records Subsistence Summer Schools Taxation Tenders Travel UCRO/European R&D Office UCL Business Unpaid Leave Unsolicited Goods VAT

41 - 47 108 - 116, 162 155 - 158 125, 126, 128 117 - 126 36, 61, 64, 97 129 - 133 39 - 40, 138 150 76 - 77, 82, 91 - 97 82 82 - 90 59, 66, 110, 117, 120, 126, 133, 160, 175 149, 150 147 - 150 155 - 156 26 - 36 155 - 158 54, 57 14, 59, 130, 142 15 25, 156 37 - 38 154 153 33 - 35, 145 -154 66, 98, 99, 102 - 107 103, 105 98, 102 - 107 Appendix 1 117 - 126 37 - 38 39, 45, 51, 156 82 - 90 117 - 126 26 - 30, 33 41-44, 46 153 134 25 - 26, 40, 50, 54, 74 - 82, 86, 93, 95, 97,

Write-off of monies

107 58, 69, 106

Mark Bery - Director Financial Accounting Section, Finance Division. Revised - 6/9/2002.