Heads of Income and Expenditure of a Bank
Subject: Accounting | Topics:

Heads of Income and Expenditure of a Bank

Heads of Department shall

  • maintain financial records as specified in Statutes and Ordinances;
  • certify whether annual statements of account (which are distributed by the Finance Division) are true and fair and that responsibilities under these Regulations have been discharged during the year; and
  • properly record all transactions in CUFS and any other financial system, the use of which has been authorised by the Director of Finance.

Staff must comply with the Finance Division CUFS user policy

Record keeping must comply with the Data Protection Act 1998. The University is subject to the Freedom of Information Act 2000 and members of the public may request copies of University documents. Advice on these matters must be obtained from the University’s Data Protection and Freedom of Information Officers.

Cash & Banking

All University Income must be paid promptly into a bank account in the name of the University (and into no other account) and be accounted for in CUFS. All University expenditure must be paid from a University bank account and be accounted for in CUFS.

Departments and Staff have no authority to open bank accounts (whether in the UK or abroad) for any University activities without the prior written consent of the Director of Finance.

Where possible Departments shall separate duties for receiving and recording University Income. Where this is not possible regular independent checks shall be made.

The Financial Procedures Manual lays out further financial requirements including in respect of cash, petty cash, banking, credit card and related matters.

Management of Expenditure

Heads of Departments are authorized to incur expenditure not exceeding the limits of funds available to the Department. They are responsible for ensuring that monitoring and control arrangements are adequate to prevent over-commitment of expenditure and that all funds under their control are used only for the purposes for which they are allocated. The Head of Department (or budget holder where authorised by the Head of Department) shall approve expenditure.

The Financial Procedures Manual lays out further financial requirements including in respect of travel, subsistence and entertainment and related matters.

Supplying Goods or Services including research

Heads of Departments must establish procedures to ensure that

  • all supplies of goods and services are authorised and are supplied as agreed;
  • trading accounts are managed to break even or achieve a surplus;
  • all relevant risks to the University are considered and managed, there are adequate credit control procedures and supplies are made only where the credit risks are acceptable;
  • the University’s standard terms and conditions are where possible applied;
  • invoices other than for sponsored research funding (see Regulation 13.3) are raised
    1. in the name of the University of Cambridge showing the University’s VAT number;
    2. through CUFS unless prior written consent is given by the Director of Finance; and
    3. wherever possible in sterling for settlement in sterling (any exchange risk lies with the Department for invoices in a currency other than sterling);
  • the liability for all taxation is established and tax is charged and accounted for as appropriate;
  • except for research contracts, which are subject to Regulation 13, the full economic cost to the University is recovered, unless the advice of the Taxation Section is sought and it is appropriate to do otherwise having regard to the particular circumstances (see further Regulation 29);
  • best value is obtained for sale of any goods to external bodies or to staff (and the Taxation Section consulted about VAT and tax implications);
  • sales to staff or their families below the cost incurred by the Department in providing the benefit (including where no charge is made) are recorded and reported as a taxable benefit at the end of the tax year;
  • where payment for goods is received in cash, the sum does not exceed the cash equivalent of €15,000 (for any single transaction (per the Money Laundering Regulations 2007))

With the exception of research grants claims, Departments are responsible for debt collection in respect of invoices issued to third parties. Advice must be sought from the Director of Finance where legal action to recover monies is considered.

Uncollectible debts, including in respect of sponsored research activity, will be an expense against the Department. The following authorities exist to write-off bad debts or for part settlement, where all reasonable steps have been taken to recover them:

  • Debtors up to £10,000 – Head of Department
  • Debtors of between £10,000 and £25,000 – Director of Finance
  • Debtors over £25,000 – Finance Committee

The Taxation Section must be informed of all write-offs (including partial write-offs) of VAT invoices, as the VAT may be reclaimable.

Research Grants

Staff shall send grant applications and proposals for research contracts to the Research Operations Office for approval before their submission.

Heads of Department shall ensure there are appropriate arrangements

  1. in conjunction with the Research Office to
    • cost grant applications and proposals on the basis of the full economic costs of the research; and
    • recover charges for facilities and overheads in accordance with and at the rates specified in University policy or record the extent and justification for subsidising the cost where in exceptional cases Head of Department agrees not to apply University policy for recovery rates; and
  2. ensure that research which is funded is conducted to meet the funding conditions.

The Research Office shall raise all invoices for sponsored research funding.

All research grant or contract income and expenditure, from whatever source of funds, must be notified to the Research Office and no part of this income may be transferred into donation accounts or other special funds, other than funding remaining unspent at the end of the research which the funder has agreed the Department may retain.

Heads of Department shall ensure that expenditure on research activity complies with these Regulations. Financial control and record-keeping shall also comply with any additional Research Council or other funder’s requirements.

The Research Office shall ensure all grants are closed on a timely basis and without residual balances.

Donation Accounts and Trust Funds

Donations belong to the University, not to an individual, and must be paid into a donation account in accordance with Regulation 10.1. Donations must be requested and received exclusively for charitable purposes. Receipt which improperly influences any decisions made by or on behalf of the University may constitute Bribery. Acceptance of donations must be made in accordance with the Ethical Guidelines for the Acceptance of Benefactions.

Heads of Department must ensure that

  • donation accounts and trust funds are maintained in credit;
  • funds are applied for the public benefit for charitable, educational or research purposes only; and
  • any Ordinances or regulations governing the receipt of donations and the conduct of individual accounts are followed.

University trust funds are governed by regulations set out in Statutes and Ordinances. Trust fund managers shall ensure that funds are used for proper purposes in accordance with the rules of the specific fund and the University’s general charitable purposes.

Transfers of donated funds to other institutions can only be to other charitable bodies and must always be approved by the Head of Department and be in accordance with the terms of the gift and the University’s general charitable purposes. Transfers shall not be made until the receiving institution has confirmed in writing that the terms of the gift will be observed. Where the transfer relates to the Head of Department’s research, the Director of Finance’s prior written consent must be obtained.

Donations cannot be transferred to individuals, except where the individual is the donor and the University is unable to meet the terms of the original gift.


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