RESPONSIBILITIES OF THE COUNCIL OF THE UNIVERSITY
INTERNAL FINANCIAL CONTROL The key elements of the University’s system of internal financial control, which is designed to discharge the responsibilities set out above, include the following: • clear definitions of the responsibilities of, and the authority delegated to, Deans of Colleges and directors of professional services;
• a comprehensive medium and short term planning process supplemented by detailed annual income, expenditure and capital budgets and cash flow forecasts; • regular reviews of academic performance and monthly reviews of financial results involving variance reporting and updates of forecast outturns; • clearly defined and formalised requirements for approval and control of expenditure, with investment decisions involving capital or revenue expenditure being subject to detailed appraisal; • Financial Regulations supplemented by a comprehensive Financial Handbook, detailing financial controls and procedures, which is updated on an annual basis; • a professional Internal Audit team whose annual programme is approved by the Audit Committee and endorsed by Council and whose head provides Council with a report on internal audit activity within the University and an opinion on the adequacy and effectiveness of the University’s system of internal control, including internal financial control, corporate governance and management of risk; and
Any system of internal financial control can, however, only provide reasonable, but not absolute, assurance against material misstatement or loss. The Corporate Governance Statement and Responsibilities of the Council of the University on pages 13 to 21 were approved by Council on 28 November 2011 and signed on its behalf by:
K R Seal Chair of Council
D J Allen Registrar and Deputy Chief Executive
• a formalised treasury and investment management policy.
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GOVERNANCE
• experienced and suitably qualified staff who take responsibility for the finance and control functions within the University and its subsidiary companies;
Council’s review of the effectiveness of the system of internal financial control is informed by the work of the internal auditors, the Audit Committee (which oversees the work of the internal audit service), the individual members of staff within the University who have responsibility for the development and maintenance of the financial control framework and comments made by the External Auditors in the management letter and in other reports. The University currently contracts out the internal audit function to Mazars LLP.