Finance Overview 2011/12 Edition
imperialcollegeunion.org
Finance Overview Page 1 imperialcollegeunion.org/training
Contents Contents
2
Introduction
3
The Big Picture
4
Sources of Money
6
Union Grant
7
Income
8
Expenditure
10
VAT
11
Transaction Codes
13
Online Transaction Pages
15
Advice & Help
17
Appendix 1 - Union Finance Regulations
19
Appendix 2 - Transaction Codes
25
Appendix 3 - Management Group Contacts
27
Š 2011 - Imperial College Union Version 2.0 - 01 June 2011 Finance Overview Page 2 imperialcollegeunion.org/training
Introduction The Purpose of the this booklet This booklet is your overview to the Union’s financial regulations and procedures which you are obliged to follow if you hold a position that has Financial Responsibility. The full regulations are reproduced in Appendix 1 of this booklet. Details of the actual operational procedures which are in place that you must follow to actually get things done during your time in office are contained in the Finance Operations booklet and accompanying eLearning. Finance Operations training will be released during Summer 2011.
Michael Foster Deputy President (Finance & Services) E: dpfs@imperial.ac.uk T: 020 7594 8060, extension: 58062
Who is this booklet for? This booklet is aimed at both Chairs and Treasurers of Clubs, Societies & Projects, while the Finance Operations booklet is primarily intended for Treasurers. Depending on the nature of your activities, you will have varying degrees of interaction with the Union regarding finances, however the information in this booklet is considered required reading. Important Contacts If you need help with anything related to what is containted in this booklet, you can get in contact with the Deputy President (Finance & Services) (see right), your Management Group Treasurer (see Appendix 3 for the full list) or the Clubs & Societies Finance Officer.
Aziz Bilgrami Clubs & Societies Finance Officer E: clubs.finance@imperial.ac.uk T: 020 7594 1514, extension: 41514
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The Big Picture The Union turns over around £3M every year and over £2M of this is directly attributed to Clubs, Societies & Projects, of which there are currently around 300. For management purposes, these groups are divided between the six Clubs & Societies Committees (CSCs), two Constituent Unions, the three Faculty Unions (FUs) and the Graduate Students’ Association (GSA), as well as the Community Action Group (CAG) and Raising & Giving (RAG). These are called Management Groups. These structures are an integral part of the Union and help with the administration of the various Clubs, Societies & Projects. Each year the Union is given a large sum of money, a grant, by the College to be spent on our members. This year it is approximately £1M. About forty per cent of this money will be spent on Student Activities, including Clubs, Societies & Projects, as well as on student welfare issues and representation. The rest will be spent on maintenance and administration of the Union.
it is your responsibility, as Treasurer or Chair, to keep your own records of your transactions. Your records will also make identifying and correcting any mistakes which may arise easy – afterall this is your money, so you should take an interest in it. If you think the Union has made a mistake, please contact the Clubs & Societies Finance Officer.
Your Roles and Responsibilities This booklet will describe the various processes the Union has in place to ensure your finances are documented correctly, and outlines how you can view this information online. However,
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Make sure you seek advice if you are unsure what to do in certain circumstances. Your first point of contact should be the Treasurer of the Management Group under which your Club, Society or Project group is placed.
Their contact details can be found in Appendix 3 of this booklet. If you are making large financial commitments make sure you consult the other members of your Club, Society or Project committee. Do not steal money or other items from your Club, Society or Project. Theft is taken very seriously and could lead to disciplinary action, which may affect your continuation as a student at the College. You have been elected to a position of trust and should act in the best interests of your members, and the Union, at all times. This trust lasts for up to seven years. You must use the Union’s bank account for all financial transactions. This is held at NatWest. It is forbidden to hold funds in other external bank accounts. Further details of the Union’s bank account are available from the Clubs & Societies Finance Officer.
Starting a bank account for your Club, Society or Project is likely to lead to disciplinary action being taken against you. It is important that your Club, Society or Project does not become overspent, keep a regular eye on your accounts and make sure you have considered upcoming expenditure when planning for the year ahead to ensure you have suitable funds. The Union is not obliged to make upfront payments for individual groups. A Financial Responsibility Form must be signed by the Chair and Treasurer of every Club, Society & Project Group after they have completed their mandatory training relating to finance. This form contains a declaration to indicate their financial responsibility for the Club, Society or Project and state that they will adhere to the rules and procedures which are in place.
Finance regulations The Union has a high-level set of Finance regulations which are approved from time to time by Union Council, the are reproduced in Appendix 1 of this booklet. The detailed information and procedures that the regulations and text in this booklet refers to can be found in the Finance Operations booklet.
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Sources of Money Money for Clubs, Societies & Projects can originate from various different places. The College provide the Union with a bulk grant every year – awards are then made to virtually all Clubs, Societies & Projects in varying sizes dependent on the popularity and nature of the activities being undertaken. This money is referred to as Grant; it has various restrictions on how it can be spent. Self Generated Income (SGI) is a term used to denote money which a Club, Society or Project generates themselves, and for which they can use as they please. This category includes money generated from membership fees, from normal activities and fundraising events, as well as from donations and sponsorship. Money is also available from various other sources within the College including the Harlington Grants Committee, the Imperial College (IC) Trust and grants directly from one of
the three Faculties. Money from these sources generally has a defined purpose, for example purchasing a piece of equipment. For more information on how to access this money look online on the College website.
Donations and Sponsorship Clubs, Societies & Projects may receive sponsorship from external organisations to help meet the costs of an activity or event. This will be in return for some benefit to the sponsor, e.g. their logo in an event programme or on a sports kit. This benefit is classed as a service therefore the income received in exchange for that service attracts VAT at the standard rate (see the section on VAT). Before you negotiate a sponsorship deal, you should read the guidance on Sponsorship & External Funding and contact the Deputy President (Finance & Services) with details of the proposal. A donation is defined as a goodwill gesture with no benefit returned to the donor. Donations do not attract VAT. If your Club, Society or Project receives a donation, you are required to provide a letter from the donor stating clearly the money received is a donation. If no such letter is provided, the income has to be treated as general income and will attract VAT at the standard rate.
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Union Grant Subsidy for Activities Each year in January Club, Society & Project Chairs and Treasurers will submit a request for Grant money from the Union, in effect a subsidy for the activities the group has planned, for the next academic year.
running of their activities. Budget Head
Subsidy
Consumables
£10.00
Equip purchase (not cap) Ground Hire Travel Expenditure
£136.50
Total This request contains projected expenditure for the next year within various categories, such as travel, referees or affiliation fees. The information provided allows the Union to make an award of Grant money to most Clubs, Societies & Projects. Each group may only spend up to this amount in each Grant category; costs over and above this amount must be funded by Self Generated Income. Generally the amount of Grant money awarded only accounts for a relatively small proportion of the expenditure made by each group.
£114.12 £520.00
£780.62
Grant Redistribution If you are unhappy with the way your Grant has been allocated between different categories it is possible for you to redistribute the money. Redistributions may only be considered in the first nine months of the financial year and must be authorised by your Management Group Treasurer. In addition, where the the total being redistributed exceeds £1,000 the authorisation of the Deputy President (Finance & Services) is also required.
Your Grant allocation Grant allocations are confirmed during the Summer term. You can see the Grant allocations which have been awarded for this year by visiting the transaction pages: https://eActivities.union.ic.ac.uk/ csadmin/finance
Once redistribution has been approved the Clubs & Societies Finance Officer will make the changes on your online transaction pages. You should direct any queries to them.
As seen in the table, this group have been awarded £780.62 across several budget categories to aid them in the
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Income Taking payments online
Taking money to the bank
Every Club, Society or Project is able to set up products in the online shop section of the Union’s main website, imperialcollegeunion.org. Details of how to do this can be found in the information on Operating Workbench, which is recommended reading for all Treasurers.
Occasionally you may be required to take payments in the form of cash or cheques, which require taking directly to the bank. As a Chair or Treasurer, you should become familiar with the Union’s procedure for dealing with income in the form of cash or cheques, which can be summarised in the following three stages: 1. Collect: Receive the money from the individual, and issue a receipt. 2. Bank: Pay-in the money at any NatWest branch using the triplicate paying-in book which has been issued to your Club, Society or Project. 3. Report: How to correctly report income taken to the bank is contained in the Finance Operations booklet.
Setting up items in the online shop is the preferred method of taking payments. It is simple for the person paying, they also receive an automatic receipt from the system. More importantly it is much easier for Treasurers – the system automatically generates lists of who has purchased which products, maximum numbers can be applied to avoid overselling, the potential for losing large amounts of money which doesn’t belong to you is avoided, and the money appears directly in your Club, Society or Project’s accounts within four days of someone paying – making it available very quickly for you to spend. Taking payments for any membership fees must be done online. To reiterate, it is strongly recommended and expected that all payments are taken online.
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All cheques must be payable to Imperial College Union, and all cash and cheques must be paid into the Union’s bank account.
Any cash or cheques which have been collected must be stored securely until they are paid into the bank. Do not take cash or cheques home with you if you can avoid it. Remember, you are financially responsible for the Club, Society or Project’s money, should you lose it you will be expected to replace it. Outside of office hours, we can arrange for you to use the Bar Safe in the Union Building. Contact the Clubs & Societies Finance Officer in advance if you wish to utilise this facility.
Send invoices Money can also be generated through the sale of goods or services, and sponsorship. If you are supplying goods or services you will need to produce a Union Invoice.
Invoices cannot be issued without a supporting document such as a Purchase Order, written request or a signed contract from a person entitled to act for the customer assuring us that they will pay the invoice. The supporting document ensures that there is sufficient proof of intent to pay; if this proof does not exist you must receive payment BEFORE the goods or services are provided. Invoices automatically allow 30 days for payment. Until an invoice is paid the money will not appear in your online transaction pages. It is the responsibility of the Club, Society or Project to ensure that the invoice is paid. Never make up your own invoices. Always make sure you create an official Union one. For details of how to do this see the Finance Operations booklet, or speak to the Clubs & Societies Finance Officer.
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Expenditure Before you consider spending any of your Club, Society or Project’s money, there are two things you should check: 1. Does your Club, Society or Project have the necessary funds? 2. Are you authorised to spend that much? You can check if you have the necessary funds by looking at your online transaction pages. In order to maintain some degree of control on how much we spend, there are limits on the amount people can authorise. A Club, Society or Project Chair or Treasurer can approve up to £20 and anything over this amount has to be approved by a Management Group Chair or Treasurer, together with a Deputy President for items over £1000. With increasing responsibility, there is an increase in the limit of authority: £0
this will change to BACS for 2011/12. Facilities are available however to pay for items by Credit Card and electronic transfer, as well as small cash payments for individual reimbursements. An Imprest system is available when money needs to be given to individuals to enable activities to take place, for example taking travellers cheques on overseas trips. Payments for goods or services provided by Imperial College Union are paid automatically by internal transfer – most often this is for the use of minibuses. The details of how to make different payments, and the various procedures in place for doing this are all contained within the Finance Operations booklet.
Club/Society/Project Chair or Treasurer
£20 £1,000
Management Group Chair or Treasurer Union Deputy President
£50,000 £500,000
Union Executive Committee Union Trustee Board
Making payments There are two main ways to pay for goods or services. You may pay after they have been supplied, otherwise you may be required to do so beforehand. Virtually all payments for Clubs, Societies & Projects are currently made by cheque,
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Honorary Senior Treasurers In addition to the limits of authority, all expenditure must be authorised by an Honorary Senior Treasurer (HST) of the Union. The HSTs act on behalf of College to ensure that the Finance Regulations are not being breached and check that budgets are adhered to, as well as acting as cheque signatories. HSTs have the power to veto any payment that they feel is not satisfactory, additionally, any cheque over £1,000 must be counter-signed by the Union President, or in their absence, the Operations Manager.
VAT Background Value Added Tax (VAT) is a tax charged on most goods or services sold within the UK, imported into the UK or acquired from the EU. The Union is a VAT registered organisation, this includes the activities of Clubs, Societies & Projects. When any part of the Union sells a product to a consumer (for example your Club, Society or Project members), it must charge the appropriate amount of VAT, known as Output Tax, which is paid to the Her Majesty’s Revenue and Customs (HMRC) – essentially the UK Government. When the Union purchases goods or services from another VAT registered organisation, it pays VAT on those purchases, known as Input Tax. This is recoverable from the HMRC provided you retain a VAT receipt or invoice. As a VAT-registered organisation, the Union submits returns to HMRC every three months which calculate the balance between Input Tax and Output Tax, and the balance is paid or recovered.
VAT. This is known as the gross amount. The net amount is price excluding VAT. The relationship is demonstrated in the example below: Net
£100
(Gross/1.2)
VAT @20%
£20
(Gross - Net)
Gross
£120
(Net x 1.2)
All financial information provided to you contains the net amounts, excluding the VAT.
Recovering VAT Gross and Net Amounts The price displayed on products in all high street shops in the UK, includes
Recovering VAT is very important, as it is money that your Club, Society or Project will be saving and can add up to a considerable amount over the course
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VAT cont... of the year. Essentially it is simply a case of collecting receipts with the correct information on. Without a valid VAT invoice or receipt the gross amount will be charged to your Club, Society or Project account instead of the net amount. You may encounter difficulty when trying to obtain VAT invoices or receipts, as not all shops will automatically provide one. The person buying the goods will often have to ask for one specifically. By Law all VAT registered companies must provide a VAT invoice or receipt when requested. Details about the requirements for VAT invoices and receipts are given in the Finance Operations booklet.
Things to remember:
• The Union (including it’s Clubs, Societies & Projects) is a VATregistered organisation. • The Union can reclaim VAT providing it has the correct receipts • Most goods and services are subject to the standard rate of VAT, which is currently 20%. • Gross is including VAT. • Net is excluding VAT. • VAT has to be charged on most income, such as ticket sales. • All prices advertised must be inclusive of VAT. Much more detail about VAT is provided in the Finance Operations booklet including how to ensure you are operating in the most VAT-efficient way. This is recommended reading, as ensuring you have the correct VAT paperwork in place can mean the difference between a successful and a disastrous event.
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Transaction Codes A transaction code is a string of numbers which tells you where money is located within your accounts. It also allows for analysis to be carried out on your transactions, meaning that various different reports can be produced. You will be asked to assign a transaction code to every item of income and expenditure your Club, Society or Project makes. It is important that you try to be as accurate as possible when doing this. Below is an example of a Transaction Code:
825 – 645 – 58 – 1 – 0 825 – the Natural Account Code, in this case “Publicity”
645 – the Centre, or Club Code, in this case “RSM Exec”
58 – the Activity Code – in this case “Freshers Dinner”
Natural Account Codes
Natural Account Codes describe the purpose of transaction, for example income from ticket sales or expenditure relating to equipment hire. These codes are split into two sub-categories: some for Income and others for Expenditure.
1 – the Funding Code, in this case “SelfGenerated Income”
0 – the consolidation code, in this case external.
When you are asked to assign a transaction code make sure you use a Natural Account Code from the correct sub-category, and try to be as accurate as possible. Club, Society or Project Code
Your Club, Society or Project will have its own unique code, for example 645 is the code for the RSM Exec. An entry field for your Club Code appears on nearly all the documentation you will fill in throughout the year. You will quickly become very familiar with your Club, Society or Project Code. Activity Codes
Activity Codes are used to group together a set of transactions relating to a specific event or activity . For example if you go on a tour, you will be assigned
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Transaction Codes cont... an Activity Code (e.g. 21) which will show all your income and expenditure for that tour together in one place. Likewise, if you run an event you will receive an Activity Code (e.g. 51), this helps you analyse how profitable your event was. For general day-to-day expenditure you will use the Activity Code 00. Funding Codes
As well as Grant money, there are a few other sources of money (or funding Categories). These categories are discussed in more detail in the section on Sources of Funding. Assigning a Funding Code allows for income and expenditure related to money from a particular source to be accounted for and reported correctly.
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Consolidation Codes The consolidation code tells the Union whether the transaction was with a party completely outside of the Union, within the College or internally within the Union. This code will not appear on any report you receive, however you will always be asked to provide it to enable to Union to provide reporting which is required by Law. A complete list of all the available options for the elements of transaction codes is given in Appendix 2.
Online Transaction Pages Your Grant money from the Union is just a small portion of what you may spend over the course of a year. In order to keep track of what money you have available, you are required to keep records to track your income and expenditure. To help you in this process, the Union maintains a set of online transaction pages. You can view your Club, Society or Project’s online accounts at: https://eActivities.union.ic.ac.uk/ csadmin/finance These transaction pages are maintained by the Union’s Systems Coordinator and are based on the information you provide about your transactions. To help you understand your transaction pages, you must first understand the transaction codes discussed in the previous section. The pages have been designed to be as easy as possible to read and provide as much information as possible in the most simple format. The transaction pages are live and update soon after transactions are entered. The pages update as soon as transactions are put into the Union’s main finance system – if something hasn’t appeared within a few days of you submitting it then contact the Clubs & Societies Finance Officer.
Reading the Transaction Pages When navigating to the transaction pages you will need to click on “Club & Society Admin” on the left hand side of the screen, then click on “Transaction Pages” from the submenu. Click on the magnifying glass icon to open open the search box, enter the name of your Club, Society or Project and click “Find Next”. The transaction pages specifically for your Club, Society or Project will be displayed. The page will default to the tab for the current financial year, and a summary of the details for your group. Click on the Transactions Summary tab to see an overall summary of your group’s financial position, different tabs will appear for the various types of funding code. Click on the Transactions Lines tab to view details of each financial transaction, again tabs will appear for each funding code.
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Online Transaction Pages cont... All your transactions will be available in a format which can be copied easily into Microsoft Excel. Below is an example a transaction entry relating to an enterance fee for a competition where the expedition is general, so the activity code 00 is used:
Items that appear in yellow on the transaction pages relate to cheques which have been issued to people but not yet cashed by them at their bank. It is important that you encourage people to cash their cheques quickly – afterall, it is their money. Below is an annotated version of the transaction page showing the Transaction Summary tab. More detailed guidance can be found in the eActivities booklet.
Submenu navigation Financial years
Transaction Summary Tab
Funding code tabs
Transaction amounts
Natural Account Codes Main Total Activity Codes Finance Overview Page 16 imperialcollegeunion.org/training
Advice & Help Sources of Advice Occasionally things don’t quite go to plan. It is important to ask for advice and help if you are unsure of what to do. Your first point of call for advice and queries should be with your Management Group Treasurer – their contact details can be found in Appendix 3. Any questions and queries relating to what has been posted onto your online transaction pages should be raised with the Clubs & Societies Finance Officer, by emailing clubs.finance@imperial.ac.uk, or attending one of their drop in sessions which are everyday in the Student Activities Centre from 4pm-5.30pm. Alternatively, financial questions can be raised with the Deputy President (Finance & Services).
Contingency funds The Union has various contingency funds available to which Clubs, Societies & Project groups can apply. These funds are intended to cover unbudgeted and/ or unexpected expenditure which has occurred or will very soon inevitably occur. Valid Contingency Claims include: • “One of our sports kits was stolen from a secure store.” • “When we applied for insurance money we were told it would not rise but it has doubled since the Union grant was allocated.” Examples of Invalid Contingency Claims: • “We wanted to buy a new engine, but we weren’t allocated money for it, so we’re asking for it now.”
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Advice & Help cont... • “A member broke someone else’s equipment and they refuse to pay for a replacement item.” • “The club decided half-way through the year it wanted to buy a different colour kit.” • “Fred took the money from the trip home, he got burgled and the money was stolen.” • “We forgot to budget for all of our transport for this year.” • “Our event went overspent and we need the money to balance it out.”
fund. Try and keep the claim relevant. The most important thing to discuss is why the claim is an unbudgeted or unexpected expense.
To make a claim to a contingency fund you must write a paper to your Management Group Chair.
Contingency claims can be made to the Management Group to which the Club, Society or Project group belongs. If the amount requested is greater than the size of the remaining Management Group’s contingency fund, or the meeting decides that they are not willing to award the contingency claim, then the claim may be submitted to the Clubs & Societies Board (CSB) or the Representation & Welfare Board (RWB), with the backing of the appropriate Management Group Chair.
The paper should include the background behind the claim and the amount that is being requested from the contingency
The CSB and RWB contingency funds are larger than any of the separate management group’s contingency funds.
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Appendix 1 – Union Finance Regulations This regulation governs all financial matters relating to the Union. Although these Regulations contain no specific sanctions for non-compliance, deliberate, negligent or repeated disregard of their provisions may result in disciplinary action being taken against the person concerned, under the terms of their employment contract with the Union, or, in the case of students, under the Union Disciplinary Procedure. Where appropriate, criminal proceedings may also be considered. The President is ultimately responsible for the finances of the Union. The responsibility for the day-to-day administration of the finances of the Union is delegated by the President to the Deputy President (Finance and Services). Day-today responsibilities may be allocated by the President to suitable members of staff. The Union annual accounts shall be approved by the Trustee Board and the College Audit Committee prior to report to the College Council. Use of Union Funds 1. The Union subvention from College, monies raised by trading outlets and any other funds generated by Union-wide initiatives may not be used for: 1. Loans, grants or subsidies to individual students, 2. Donations or payments to persons and bodies outside the Union except for subscriptions to national or regional student bodies approved by Council or payments for supplies and services rendered. In particular, no part of such funds shall be used to support or further the aims or activities of any body, group or campaign of a political nature, nor be paid to any voluntary body or other educational institution or any group of persons at any educational institution, 3. The benefit of individuals in any way that would not be equally available to the membership as a whole, 4. Donations to charitable causes, except where the Union authorizes fundraising events and donates the proceeds to charitable causes, provided that the object of the fundraising is made clear to the donors, or 5. Ultra vires payments as defined by the Attorney General. Trustee Board Responsibilities 2. As established in Regulation One of the Union, the Union’s Trustee Board
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Appendix 1 cont... shall be responsible in particular for: 1. The Union’s long term objectives and strategy, 2. The Union’s operating and capital expenditure budgets and any significant changes in them, 3. Strategic oversight of the Union’s operations (both voluntary and commercial), including competent management, sound planning, adequate systems of internal control, adequate accounting, risk management and compliance with statutory and regulatory procedures, 4. Personnel, particularly strategic re-organizations, 5. Health and Safety, 6. Investment or borrowing of Union funds, 7. Reviewing performance in light of the Union’s strategic direction. 3. The Trustee Board shall: 1. Approve the Union’s Annual Report and accounts, 2. Approve any significant change in accounting practices, 3. Approve any major capital project and contract which is significant strategically or by its size, and 4. Approve the remuneration of the Sabbatical Officers and Union Operations Manager. 4. The Trustee Board shall, as established in Union Regulation 1.33, be responsible for approving without delegation any capital project or contract valued in excess of £1,000,000.
Budgets 5. The Executive Committee shall propose a consolidated income and expenditure budget and a capital expenditure budget for each financial year not later than the end of the summer term in the previous year. 6. The proposed budgets shall be approved by the Trustee Board, after ratification by the Council. 7. The approved budgets (or individual items within them) may be varied only with the authorisation of the President for amounts up to £5,000 and the Executive Committee for all amounts in excess of this. The President may delegate authority to vire to appropriate Officers or Committees, save that no Officer may exercise such authority in excess of the limits of authority defined in paragraphs 16 – 24 of this regulation. 8. The Executive Committee shall monitor the performance of the Union Finance Overview Page 20 imperialcollegeunion.org/training
against budget during the financial year and may review the budgets in line with forecasts. Budget Holders’ Responsibility 9. It is the responsibility of every budget holder to ensure that expenditure committed from his/her budget complies with the Union financial procedures. Budget holders must also ensure that the handling of income complies with the Union financial procedures. Bank Accounts and Investments 10. Neither the Union nor any constituent part of the Union nor any individual acting on behalf of such a part may operate a separate bank account other than that authorized in advance by the Executive Committee, in accordance with operational policy. 11. The Executive Committee shall be authorized to invest any surplus funds or reserves after taking reasonable professional advice. Payment Authority 12. A ll payments (cheques and other paper/electronic financial instruments) must be signed or otherwise authorised by a Honorary Senior Treasurer. 13. A ll payments for amounts in excess of £1,000 shall be counter-signed by the President. 14. In the absence of the President, one of three other nominees may sign on his/her behalf. 15. T he Executive Committee shall approve the nominee signatures on the recommendation of a Union Honorary Senior Treasurer and President respectively. Limits of Authority 16. N o unauthorised member or employee may sign a contract or otherwise commit expenditure on behalf of the Union or any part thereof. 17. Expenditure up to £20 may be authorized by any financially responsible officer on behalf of their respective Club, Society or Project. 18. Expenditure greater than £20 and up to £1000 must be authorised by any financially responsible officer on behalf of their respective Club, Society or Project, and their respective Management Group Chair or Treasurer. In the absence
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Appendix 1 cont... of any of the financially responsible officers required, the Deputy President (Finance & Services) or Deputy President (Clubs & Societies) may authorise expenditure on their behalf. 19. The Management Group Chair and Treasurer must both authorize all expenditure above £20 and up to £1,000 from their budget. In the absence of any of the financially responsible officers required, the Deputy President (Finance and Services) or Deputy President (Clubs and Societies) may authorise expenditure on their behalf. 20. Operational managers may authorise expenditure consistent with their budgets, subject to approval by the Union Operations Manager for orders or contracts in excess of £5,000 up to £50,000. 21. The Deputy President (Finance and Services), or, in his or her absence, the Deputy President (Clubs and Soceities), shall authorise all other expenditure up to £50,000. 22. The Executive Committee shall authorise all expenditure over £50,000 up to £500,000. 23. The Trustee Board, on the recommendation of the Executive Committee, shall authorise all other expenditure. Orders 24. O rders of goods or services shall only be placed using an Imperial College Union order form or in accordance with a duly authorised contract. Loans to Staff 25. L oans to staff must not be made without the written permission of the Union Operations Manager and the Deputy President (Finance and Services). Arrangements for repayment of such loans must be put in place before the funds are advanced. Long-Term Commitments 26. Only the President jointly with the Union Operations Manager shall sign a contract which commits the Union to any obligation that extends beyond the current financial year. Such contracts shall only be signed with the prior written authorisation of the relevant budget holder. Such authorisations shall be made within the limits set out in paragraphs 16 –
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23 of this regulation. 27. A ppointments of staff (except those employed on a ‘casual’ or ‘zerohours’ contract basis) and any variance to their contracts shall be authorised by the Deputy President (Finance and Services) or their nominee.
Events 28. The limits of authority as defined in paragraphs 16 – 23 of this regulation shall be applied to the total of all expenditures relating to events organised on behalf of the Union. 29. Prior authorisation shall be given in writing. Cash Holding 30. Other than trading outlets for legitimate operational purposes (as determined by the Executive Committee), no constituent part of the Union may hold cash without the prior written authorisation of the Deputy President (Finance and Services). 31. Cash takings shall be deposited with the Union’s bankers within three working days of receipt and no expenditure may be incurred from cash receipts. 32. Members and employees may carry or hold cash or other valuables with due regard to the limits set from time to time by the Union’s insurers. Borrowing 33. The Union shall not borrow any external funds without the prior written authorisation of the Trustee Board. Guarantees and Indemnities 34. T he Union shall not give any guarantees or indemnities without the prior written authorisation of the Trustee Board. Supplies on Credit 35. Goods and services may be issued on credit in accordance with approval procedures and credit limits set by operational policy. Inventories and Asset Management 36. The Union shall maintain a full inventory of all its assets valued
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Appendix 1 cont...
(individually or in aggregate) in excess of ÂŁ50. 38. It is the responsibility of all Union Officers, Club, Society or Project Chairs and Managers to ensure that they maintain a register of such items and inform the Union Operations Manager when such items are disposed of. 39. Equipment valued in excess of ÂŁ50 belonging to the Union or any constituent part thereof, shall not be sold, re-allocated or otherwise disposed of without the prior written authorisation of the relevant budget holder and the President. Authorisation shall only be granted after consultation with the Union Operations Manager by the President.
Union Honorary Senior Treasurer 40. The appointment of a Union Honorary Senior Treasurer shall be determined by the Trustee Board on the advice of the Executive Committee and approved by the Rector or his or her nominee and he or she shall: 1. Act as a payment authority for the main Union bank accounts. 2. Ensure, on behalf of the College, that the Union Financial regulations are observed, 3. Be a Permanent Observer of the Trustee Board, Council and Executive Committee, 4. Ensure that all books and financial records pertaining to the Union are submitted to the Clerk to the College Council within 45 days of the end of the financial year, 5. Be responsible for ensuring that any anomaly or discrepancy in the financial management of the Union is reported to the Deputy President (Finance and Services). If no satisfactory outcome results, the matter shall be reported to the President, and, if appropriate, to the College Internal Audit section and the Rector. 6. Exercise office for a maximum of five years.
Finance Overview Page 24 imperialcollegeunion.org/training
Appendix 2 – Transaction Codes
This is comprehensive list of the codes that you may use on various items of documentation such as income forms, claim forms, purchase orders, etc.
Income Codes Code Name 430 Donations 550 Sponsorship 580 Ticket Income 590 Travel 450 Goods and Services
VAT Codes – Income Code Name S1 Standard rated S0 Zero rated SE Exempt SN Outside Scope
Expenditure Codes Code Name 600 Acts 605 Affiliation Fees 640 Consumables 725 Copyright & Royalties 650 Cultural Activities 655 Decorations 680 Entrance Fee Competition 675 Entrance Fee Conference 685 Equip purchase (not cap) 690 Equipment Hire 705 Goods for Resale 710 Ground Hire 730 Hospitality 735 Instructors 820 Printing Costs 825 Publicity 860 Stationery 870 Subscriptions 895 Travel Expenditure
VAT Codes – Expenditure Code Name P1 Standard rated P0 Zero rated PE Exempt PN Outside Scope
Finance Overview Page 25 imperialcollegeunion.org/training
Appendix 2 – Transaction Codes cont...
Event Codes Code Name 00 General 21-29 Tour 51-69 Event
Description Day-to-day transactions. For example, Winter Tour. For example, Freshers Ball.
Funding Codes Code Name Description 0 Grant Union money allocated by your Management Group 1 Self Generated Money generated through trips, good and servces Income 2 Harlington Money from the Harlington Grants Committee 3 IC Trust Money from the IC Trust 4 Faculty Grant Money from a College Faculty for a specific purpose
Consolidation Codes Code Name 0 External 1 College 2 Internal
Description Outside College and the Union Outside the Union, within College Within in the Union
Finance Overview Page 26 imperialcollegeunion.org/training
Appendix 3 – Management Group Contacts These positions are held by students who volunteer their time to carry out these roles.
Group
Chair
Treasurer
ACC
Henry Abbot acc.chair@imperial.ac.uk
Philip Sandwell acc.treasurer@imperial.ac.uk
A&E
Chandana Shankar ae.chair@imperial.ac.uk
Henry Whittaker ae.treasurer@imperial.ac.uk
cag.chair@imperial.ac.uk
cag.treasurer@imperial.ac.uk
Tsz Shing Kwan engineering.president@imperial.ac.uk
Patrick Pang vpfs@imperial.ac.uk
CAG CGCU GSA
gsa.chair@imperial.ac.uk
gsa.treasurer@imperial.ac.uk
ICSMSU
Florence Chamberlain (Clubs & Societies Officer) medic.clubsandsocs@imperial.ac.uk
Peter Davis medic.treasurer@imperial.ac.uk
Media
Charles Betts media.chair@imperial.ac.uk
Frank MacHin media.treasurer@imperial.ac.uk
OSC
Wenjun Er osc.chair@imperial.ac.uk
Theodoros Stylianides osc.treasurer@imperial.ac.uk
RAG
rag.chair@imperial.ac.uk
rag.treasurer@imperial.ac.uk
RCC
Joakim Scharp rcc.chair@imperial.ac.uk
Gareth Naylor rcc.treasurer@imperial.ac.uk
RCSU
Luke Kanczes rcsu.president@imperial.ac.uk
Karmen Chiu rcsu.treasurer@imperial.ac.uk
RSMU
Richard Simons rsm.president@imperial.ac.uk
Alexander Karvelas rsm.treasurer@imperial.ac.uk
SCC
Kajann Prathapan scc.chair@imperial.ac.uk
Rebecca Clark scc.treasurer@imperial.ac.uk
silwood.chair@imperial.ac.uk
silwood.treasurer@imperial.ac.uk
Silwood
Finance Overview Page 27 imperialcollegeunion.org/training
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