| Category | Finance |
|---|---|
| Type | Policy |
| Approved by | University Council |
| Date Policy Took Effect | 1 January 1995 |
| Last approved revision | 1 June 2008 |
| Sponsor | Chief Financial Officer |
| Responsible officer | Financial Controller |
Purpose
The purpose of this policy is to provide a framework for monitoring, reporting and controlling financial performance and incentives for good financial management and penalties for inadequate financial management.
Content
Reporting
All financial performance will be measured against the budget.
Divisions will monitor the financial results of their cost centres monthly and will take corrective action where necessary. In turn, each cost centre will monitor the performance of their activity centres. Financial reports will be provided for this purpose.
Monthly narrative reports will be prepared for the Vice-Chancellor by every division with the assistance of Financial Analysts from Financial Services Division. The reports will be signed off by the head of each division
The Chief Financial Officer will provide a monthly report to the Vice Chancellor and to Finance & Budget Committee and Council.
Carry Forward - Variances from Budget and/or Actual Surpluses/Deficits
As a means of providing an incentive for good financial management, all activity centres within academic cost centres will carry forward, from one year to the next, any variances from budget or actual surpluses/deficits, depending on the nature of the activity. Activity centres within non-academic cost centres will not carry forward budget variances unless specifically approved by the Vice-Chancellor.
The following rules will apply to Activity Centres:
A, C, D, K, M, N Activity Centres and S projects (Teaching, Administration, Internal Commercial, and Cost Centre Funded Research)
The difference between actual and budget at year end will carry forward. Depreciation is ignored and capital expenditure is included.
R projects in Departments (Research Committee Grants)
Actual surpluses and deficits at year end will carry forward. Depreciation is ignored and capital expenditure is included.
All carry forward balances on projects with a one year timeframe will be removed at 31 March each year unless the researcher receives approval from the Research Committee for an extension of time. Carry forward balances on projects with a timeframe greater than one year will be carried forward until the project due date expires, at which time the carry forward balance will be removed.
E Activity Centres (External Commercial Activities)
Actual surpluses and deficits at year end will carry forward. Depreciation is ignored and capital expenditure is included.
P Projects (Externally Funded Research – Reciprocal)
Actual surpluses and deficits at year end will carry forward as a liability called Research Funding Received in Advance. This recognises that there is a future commitment for research. Unfunded depreciation is ignored and capital expenditure is included.
Q Projects (Externally Funded Research – Non-Reciprocal)
Actual surpluses and deficits at year end will carry forward. Unfunded depreciation is ignored and capital expenditure is included.
T Activity Centres (Trust Funds)
Actual surpluses and deficits at year end will carry forward.
Carry Forward Balances
Divisions are required to ensure that there is proper monitoring and control of carry forward balances.
Refer to the policy entitled “Carry Forward Balances”.
Related policies, procedures and forms
Contact for further information
For further information, contact:
The Revenue Management Accountant
Extension 9004
Email financial.controller@otago.ac.nz
