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Statement of the Council's Primary Responsibilities

In accordance with the University's Charter of Incorporation, the Council is responsible for the management and administration of the University’s affairs, including ensuring an effective system of internal control, and is required to present audited financial statements for each financial year.

The Council is responsible for keeping proper accounting records which disclose with reasonable accuracy the financial position of the University and to enable it to ensure that the financial statements are prepared in accordance with the University’s Charter, the Statement of Recommended Practice on Accounting in Further and Higher Education Institutions and other relevant accounting standards.

In addition, within the terms and conditions of a Financial Memorandum agreed between the Higher Education Funding Council for England (HEFCE) and the Council of the University, the Council, through its designated office holder, is required to prepare financial statements for each financial year which give a true and fair view of the University’s state of affairs and of the surplus or deficit and cash flows for that year.

In causing the financial statements to be prepared, the Council will ensure that:

  • suitable accounting policies are selected and applied consistently;

  •  judgements and estimates are made that are reasonable and prudent; 

  • applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements; 

  • financial statements are prepared on the going concern basis unless it is inappropriate to presume that the University will continue in operation. The Council is satisfied that the University has adequate resources to continue in operation for the foreseeable future: for this reason the going concern basis continues to be adopted in the preparation of the financial statements.

The Council will take reasonable steps to:

  • ensure that funds from the HEFCE are used only for the purposes for which they have been given and in accordance with the Financial Memorandum with the HEFCE and any other conditions which the HEFCE may from time to time prescribe; 

  • ensure that there are appropriate financial and management controls in place to safeguard public funds and funds from other sources; 

  • safeguard the assets of the University and prevent and detect fraud; 

  • secure the economical, efficient and effective management of the University's resources and expenditure.

The key elements of the University's system of internal control, which is designed to discharge the responsibilities set out above, include the following:

  • appropriate procedures for the appointment of the Vice-Chancellor and other senior officers and for monitoring their performance, including a Remuneration Committee for senior staff;

  • clear definitions of the responsibilities of, and the authority delegated to, heads of academic and administrative departments;

  • a comprehensive medium and short-term planning process, supplemented by detailed annual income, expenditure, capital and cash flow budgets;

  • regular reviews of key performance indicators and business risks and quarterly review/s 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 formal detailed appraisal and review according to approval levels set by the Council;

  • comprehensive Financial Regulations, detailing financial controls and procedures, and processes for risk management and the management of conflicts of interest. The Financial Regulations are approved by Council and subject to regular review; 

  • comprehensive Personnel Policies including all phases of employment, all aspects of equal opportunities, harassment, grievances and whistle-blowing; 

  • a professional Internal Audit team whose annual programme is approved by the Audit Committee and Council and whose head provides the Council with a report on internal audit activity within the University and an opinion on the adequacy and effectiveness of internal control, including internal financial control.

Any system of internal control can, however, only provide reasonable, but not absolute assurance against material misstatement or loss.