2006 Annual Report - University of Salford

Annual Report &
Financial Statements
Statement of the Council’s Responsibilities and Internal Control
Statement of the Council’s Responsibilities
and Internal Control
1. As the Council of University of Salford, we have
responsibility for maintaining a sound system of internal
control that supports the achievement of policies, aims and
objectives, while safeguarding the public and other funds
and assets for which we are responsible, in accordance with
the responsibilities assigned to the Council in the Charter
and Statutes and the Financial Memorandum with the
Higher Education Funding Council for England.
2. The Council is responsible for keeping proper accounting
records which disclose with reasonable accuracy at any time
the financial position of the Group and to enable it to
ensure that the Financial Statements are prepared in
accordance with the University’s Charter of Incorporation,
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 the Financial Memorandum agreed between
the Higher Education Funding Council for England and the
Council of the University, the Council, through its
designated officer, the Vice-Chancellor, is required to
prepare Financial Statements for each financial year which
give a true and fair view of the state of affairs of the
University and Group and of the surplus or deficit, and cash
flows for that year.
3. In causing the Financial Statements to be prepared the
Council ensures that:-
(a) suitable accounting policies have been selected and applied
consistently;
(b) judgements and estimates have been made that are
reasonable and prudent;
(c) applicable Accounting Standards have been followed,
subject to any material departures disclosed and explained
in the Financial Statements;
(d) Financial Statements have been prepared on the going
concern basis, unless it is inappropriate to presume that the
Group will continue in operation. The Council is satisfied
that it 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.
4. The Council takes reasonable steps to:-
(a) ensure that funds from the Higher Education Funding
Council for England are used only for the purposes for
which they have been given and in accordance with the
Financial Memorandum with the Higher Education Funding
Council for England and any other conditions which the
Higher Education Funding Council for England may from
time to time prescribe;
(b) ensure that there are appropriate financial and
management controls in place to safeguard public funds
and funds from other sources;
(c) safeguard the assets of the Group and prevent and
detect fraud;
(d) secure the economical, efficient and effective management
of the University’s resources and expenditure.
5. The key elements of the Group’s system of internal financial
controls, which is designed to discharge the responsibilities
set out above include the following:
(a) clear definitions of the responsibilities of, and the authority
delegated to, heads of academic and administrative
departments;
(b) a medium or short term planning process supplemented by
annual budgets;
(c) regular reviews of academic and support service
performance;
(d) clearly defined and formalised requirements for approval
and control of expenditure, with capital expenditure being
subject to formal detailed appraisal and review according
to approval levels set by the University Council;
(e) comprehensive Financial Regulations, detailing financial
controls and procedures, approved by the Finance
Committee;
6. The system of internal control is designed to manage rather
than eliminate the risk of failure to achieve policies, aims
and objectives. It can therefore only provide reasonable and
not absolute assurance of effectiveness.
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