5 Visitor and Officers of the University7 History of the University9 Land and property10 Associations and mergers12 The governance of the UniversityIndex15 The powers and duties of the Officers of the University17 Finance21 Academic organisation23 Teaching, research and learning services28 Student residence, welfare and services32 Societies33 PublicationsAppendix 1Appendix 2Appendix 3Appendix 4Appendix 5Appendix 6Appendix 7Appendix 8Appendix 9The Council – Charter and StatutesCouncil Standing OrdersDelegation of Powers by the CouncilMembers of the Council: Biographical detailsStrategy and Finance Committee – Terms of ReferenceAppointments Committee – Terms of ReferenceSupport Services Policy Committee – Terms of ReferenceThe Senate – Statute XVII, Powers of the SenateSenior Management Board – Terms of ReferenceAppendix 10 Committee reporting structureAppendix 11 Financial RegulationsAppendix 12 Public Interest Disclosure (‘Whistleblowing’)Policy and ProceduresAppendix 13 Fraud Policy and Fraud Response PlanAppendix 14 Model Financial Memorandum between HEFCE andinstitutions (August 2010/19) including Mandatoryrequirements and Audit Code of Practice (Annexes A and B)Appendix 15 Previous Officers of the UniversityAppendix 16 Some statisticsA guide for Members of Higher Education Governing Bodies in the UK hasbeen prepared by the Committee of University Chairmen in associationwith the Higher Education Funding Council. Copies of the Guide (2009/02)have been circulated to all members of the Council.The guide is also available from:www.hefce.ac.uk/pubs/hefce/2009/09_02/09_02.pdf
Visitor and Officersof the UniversityVisitorHer Majesty the QueenChancellorSir John Madejski, OBE, DL,Hon DLitt (Reading)Vice-chancellorSir David Bell,KCB; MA, MEd, DipEd,Glasgow; PGCE, JordanhillCollege of Education; HonDUniv, Strathclyde,HonEdD, De Montfort (from 1 January 2012)Acting Vice-ChancellorProfessor T.A. Downes,BA, BCL, Oxford (until 31 December 2011)President of the CouncilChristopher Fisher, BA (Reading),MPP (Harvard)Vice-Presidents of the CouncilJudith Scott, BSc (St Andrews), CEng,CITP, FBCSBob Dwyer, BSc, London; FCIPDDEPutY Vice-ChancellorProfessor Tony Downes, BA, BCL (Oxford)Pro-Vice-ChancellorsProfessor G. Brooks, BPharm, PhD, London;MRPharmS, FAHA (from 1 January 2012)Professor S.J. Mithen, BA, Sheffield;MSc, York; PhD, Cambridge; FSA, FSA (Scot), FBAProfessor R.L. Robson, BA, York; PhD, Wales(until 31 December 2011)Professor C.M. Williams, BSc, PhD, LondonDeans of the FacultiesArts and HumanitiesProfessor G.H. Tucker,MA, PhD, CambridgeHenley Business SchoolProfessor John Board,BA, PhD (Newcastle-upon-Tyne)Life SciencesProfessor Richard Ellis,BSc (Wales), PhD (Reading), CBiol,FIBiol (Crop Production)ScienceProfessor George Marston,MA, DPhil, Oxford; CChem, MRSCUniversity Secretary andDirector of governanceKeith Hodgson, BA (Leicester)Director of External AffairsShaun Horan, LLB (Southampton),Barrister at LawDirector of estates andFacilities ManagementColin Robbins, BSc (Portsmouth), FRICSDirector of Financeand Corporate ServicesDavid Savage, BA (London), FCCADirector of Student andcademic Services:Richard Messer, BA, Oxford; PhD, BirminghamAuditorsKPMG5
History of the UniversityIn 1892 Christ Church, Oxford, commissioned Mr (later the Rt HonSir) Halford Mackinder to develop a College in Reading. Mackinder,famous for making the first ascent of Mount Kenya, was responsiblefor establishing the study of Geography as a new discipline inuniversities, and had a distinguished career as Director of the LondonSchool of Economics, a Member of Parliament and a Commonwealthstatesman. He became the first Principal of the Extension Collegeof the University of Oxford which was established as a result of theChrist Church initiative. Two existing institutions in Reading, aSchool of Art founded in 1860 and a School of Science dating from1870, were incorporated into the Extension College. In 1902 theCollege, then in Valpy Street, qualified for inclusion in the list ofinstitutions receiving a Treasury grant and in 1904, through thegenerosity of Mr Alfred Palmer, it moved to a larger site in LondonRoad. Large sums were raised to provide laboratories, classrooms,studios, the Great Hall and other buildings, and the Rt Hon GeorgeWilliam Palmer presented an endowment fund of £50,000. In 1926University College, Reading was incorporated as the University ofReading, able to award its own degrees. Dr W M Childs, who hadsucceeded Mr Mackinder as Principal of the College in 1903, thusbecame the first Vice-Chancellor of the University, which was theonly University to be granted a Royal Charter between the two WorldWars. The armorial shield of the University incorporates in its upperhalf three shells, representing the shield of Reading Abbey; theengraved cross below represents the arms of Christ Church, Oxford,with a Lancastrian rose (which forms part of the arms of the RoyalCounty of Berkshire) superimposed. The shell was in former timesthe symbol of a pilgrim. Another name for a pilgrim was “palmer”;thus the generosity of the Palmer family is neatly commemorated inthe University arms.In 1947 Whiteknights, a 300-acre park which is the remnant ofthe medieval manorial estate of Earley or Erleigh Whiteknights,was bought for the University. Landscaped in the 18th century, itwas ornamented considerably between 1798 and 1819 under theownership of the Marquis of Blandford (who became Duke of Marlborough).Later, the original manor house having gone, the estatewas divided into six leaseholds containing Victorian family houseswhich were lived in until some 40 years ago. Today the site accommo-7
History of the Universitydates most of the University’s academic departments including thoseat Earley Gate, the eastern extremity of Whiteknights. In April 1989Bulmershe College of Higher Education merged with the Universityand the University acquired the 42 acres of land and buildings. TheBulmershe College site, now known as Bulmershe Court, about oneand a half miles from Whiteknights became the University’s thirdcampus but will be vacated for academic purposes during 2011.In 1989 a large portion of the nine-acre site at London Road wassold to what became Witan International College, an internationalJapanese foundation; the University always retained ownership ofpart of the site and of buildings there, including the University’s WarMemorial, and the Great Hall which is used for degree congregationsand other ceremonial occasions, as well as for concerts and operaperformances. In 2004 it re-acquired the entire site and the Instituteof Education will re-locate there during 2011.In 2008 the University merged with Henley Management College(based at Greenlands, the former estate of the stationer W.H.Smith inHenley-on-Thames) to create a world-class Business School with thestatus of a Faculty of the University.In 2011, the University announced the first phase of the developmentof a Reading presence in the Malaysian city of Johor Bahru, whereit will be delivering English Language and Executive Educationprogrammes from January 2012. This initiative is part of wider plansto deliver degree programmes in the region from 2014 as part of theEduPark development.8
Land and propertyAs well as the parkland at Whiteknights and the land at BulmersheCourt, the University has farms for agricultural and horticulturalteaching and research at Sonning and Shinfield, and a site at LondonRoad. We also operate the Henley Business School at Greenlands inHenley-on-Thames, the home of the former Henley ManagementCollege.From the late 1950s the University has been engaged in a continuousdevelopment of the estate. Early notable landmarks were the Facultyof Letters building, opened by Her Majesty The Queen in 1957, andthe Library, opened by the Chancellor Lord Bridges in 1964; henceQueens Drive and Chancellors Way.Many more buildings were added during the closing decades of thetwentieth century and the pace has continued in recent years.The University is fully committed to its major investment and redevelopmentprogramme, and replacing many of its older halls ofresidence. The first two new blocks of accommodation (Mackinderand Stenton Halls) opened in October 2010. A further phase of accommodationis due to be completed by the summer of 2012.The new Hopkins Building, the extension to the ICMA Centre andthe new Business School are fully operational and represent aninvestment of over £50 million.Work is now complete on the construction of a new Film, Theatreand Television building in the centre of Whiteknights. This has beennamed the Minghella Building.‘The new EnterpriseBuilding at EarleyGate was opened inthe spring of 2011.’Further work is also in full swing on the London Road campus tofacilitate the relocation of the Institute of Education to their newhome which is due for completion by the end of 2011.The new Enterprise Building at Earley Gate was opened in the springof 2011.Clearly the management and development of the estate continuesas we endeavour to enhance the experience of all who are fortunateenough to share this magnificent setting.9
Associations and mergersOver the last 85 years the University has developed close links with anumber of other institutes and colleges.College of EstateManagementNational College of FoodTechnologyInstitute of EducationThe College of Estate Management was founded in 1919 to teachcourses by correspondence for professional examinations and forthe new London external degree of BSc (Estate Management). In 1938the College was recognised by the University of London as an institutionproviding tuition for its internal degree. In 1967 the Collegebecame associated with the University of Reading, and the Faculty ofUrban and Regional Studies was founded. The College moved fromKensington to Whiteknights in 1972. The University took responsibilityfor teaching for Reading internal degrees, but the Collegecontinues to operate under its own Royal Charter to provide distancelearning, conferences and research for the land and constructionindustry. The University validates the College’s BSc programmes inBuilding Surveying, Construction Management, Estate Management,Property Management and Quantity Surveying, its MBA programmein Construction and Real Estate and its MSc programmes in Conservationof the Historic Environment, Facilities Management, PropertyInvestment, Real Estate, and Surveying.During 2010 the University and the College agreed to pursue independentfutures and a Working Party has been established to overseethe transition.The National College of Food Technology at Weybridge became partof the University in 1966 and in 1982 moved to Whiteknights to sharea purpose-built Food Studies building with the University’s Departmentof Food Science. A combined Department of Food Science andTechnology was established in 1986 and this became the School ofFood Biosciences in 1999 which, in turn, became part of an integratedSchool of Chemistry, Food and Pharmacy in 2006.Bulmershe College, Earley, which was for many years associatedwith the University’s School of Education, merged with the Universityin 1989 leading to the creation of the Faculty of Education andCommunity Studies, now incorporated as an Institute within theFaculty of Arts, Humanities and Social Science.10
Handbook for members of CouncilHenley ManagementCollegeAssociated InstitutionsThe University merged with Henley Management College in 2008,resulting in a full-function, triple-accredited Business School withthe status of a Faculty of the University.In 1967 a category of Associated Institutions was established in recognitionof the associations which had been developed with a numberof specialist institutions. There are formal associations with theBerkshire Health Promotion Service; Berkshire Public Health Department;CABI Bioscience; Cerebrus Ltd; East Malling Research; EdenProject; Forest Research; Institute for Animal Health; Institute ofGrassland and Environmental Research; Lord Zuckerman ResearchCentre (Reading Scientific Services Ltd); MRC Radiation and GenomeStability Unit; Natural History Museum; NERC Centre for Ecologyand Hydrology; PIRA International; Randolph College; RothamstedResearch; Royal Berkshire NHS Foundation Trust; Royal BotanicGardens, Kew; Royal Horticultural Society; Summer Institute ofLinguistics; and Syngenta Jealott’s Hill International Research Centre.The Heads of several of these institutions are designated VisitingProfessors in the University and those staff who contribute toteaching and research in the University have been given the status ofVisiting Member of the Academic Staff.Science & TechnologyCentreInternational andEuropean linksLocated on the University campus, the Science and TechnologyCentre and Reading Enterprise Centre offer prime business accommodationto entrepreneurial and innovative companies seeking aUniversity based location.The Science and Technology Centre, is home to around 25 companiesmainly in the biomedical, environmental and food sectors whilethe recently completed Enterprise Centre – opened in April 2011 – isalready home to a community of 25 companies mainly in the IT anddigital sectors.Interactions between the companies in the centres and the Universityis encouraged for collaborative projects and to offer interestingwork based learning placements and job opportunities for graduates.Under European Union funding of the Lifelong Learning Programme,the University currently has 195 Erasmus staff and student exchangeagreements with 116 European institutions in 21 countries. In2010-11, 99 University of Reading students studied or worked abroadin 8 of the participating European countries. Through the ERASMUSStaff Mobility programme 47 teaching and training placements werefunded, hosted by 36 institutions in 14 European countries – nearlyhalf of the participants were new to the programme. The Universitywelcomed 53 non-European study abroad students studyingfor one, two or three terms, from Australia, Brunei Darussalam,China, Japan, Thailand and the United States of America, and hadan increased number of Reading students studying at non-Europeandestinations (23). The Reading International Office (RIO) is responsiblefor the recruitment, admission and care of all these students.11
Associations and mergersThe governanceof the UniversityCharter and StatutesCourtThe Charter and Statutes of the University date from 17 March 1926when the University received its Royal Charter, and embody thearrangements under which the University is governed. Some amendmentsto the Charter and Statutes have been made since 1926 toreflect developments and changes within the University; but theseamendments (which have to be approved by, respectively, HM theQueen or the Privy Council) have not affected the basic organisationalstructure.The Court (Chairman: the Chancellor) meets annually in the SpringTerm and includes in membership all members of the Council andthe Senate. It is the body through which the University maintainsinfluential contact with the wider community but has no formalgovernance role. The Court typically hears presentations on the workof the University.CouncilAppendix 1: Council Charterand StatutesAppendix 2: Council StandingOrdersThe Council (Chairman: the President) has provision for 30 members,comprising 11 academic and one non-academic staff members, twostudents, and 16 external members.The Council, which meets four times each academic year, is theExecutive Governing Body of the University with responsibilityfor the government of the University, managing the University’sresources (including finance, land, property, investments, contracts,and other business affairs), approving changes to the Charter,Statutes and Ordinances, appointing Officers of the University,reviewing and promoting teaching and research in the University,and acting as the ultimate body to deal with grievances by staff orstudents.The Council has delegated powers to a number of sub-committees,including the Strategy and Finance Committee, an AppointmentsCommittee, a Support Services Policy Committee, an Audit Committeeand a Remuneration Committee. These are formally constitutedas committees of the Council with written terms of reference andspecified membership, including a majority of lay members.12
Appendix 4: Biographical detailsof membersThe lay members of Council play a role similar to that of nonexecutivedirectors and bring to the University diverse professionalskills, and broad experience of the community at large. They alsoform a useful sounding board for the Vice-Chancellor and othersenior Officers of the University and give valuable advice and help inthe development and management of the University. By becominga member of the Council whether in an ex officio, lay or academiccapacity, the individual concerned agrees to play as full a part aspossible in its affairs, including membership of its sub-committees,and to accept the corporate responsibility for the Council’s decisionswhich membership involves.Under the University’s Financial Regulations a member of Councilhaving a material, personal, financial or other beneficial interestin any transaction between the University and a third party shalldisclose his or her interest in writing in advance in any discussion ordecision regarding that transaction. The disclosure shall be made tothe University Secretary.In July 1996 the Council agreed, in the light of the recommendationsof the Nolan Report on Standards in Public Life that in additionto the requirement to disclose interests there also be a Register ofCouncil Members’ interests. In 2001 this was extended to includesenior staff who were not members of the Council and, morerecently, to include lay members of all University committees.The University is insured, via brokers Marsh, with Zurich MunicipalInsurance. Cover for Directors and Officers Indemnity is in place. Thelimit of indemnity is £2,000,000 any one event and in the aggregate.Strategy and Finance CommitteeThe Strategy and Finance Committee (Chairman: the President) meetsfour times a year and in many respects functions as an executive ofthe Council. Its membership provides for a lay majority in recognitionof its pivotal role in acting for and advising the Council.SenateThe Senate (Chairman: the Vice-Chancellor) has about 100 members,including the Deans; Heads of School; elected representatives ofSchools, of the professoriate, and of non-professorial staff; andstudents. It meets at least four times a year and is the principalacademic administrative body of the University. Statute XVII sets outthe powers of the Senate.The Senate reports to the Council and its recommendations onpurely academic matters are in practice normally accepted.13
The governance of the UniversitySenior ManagementBoardThe Senior Management Board (Chairman: the Vice-Chancellor)consists of the Vice-Chancellor, the Deputy Vice-Chancellor, the Pro-Vice-Chancellors, the four Deans and the five Heads of Directorate.The Academic Services Manager is in attendance. It meets fortnightlyduring term-time and in many respects its relationship with theSenate corresponds to that of the Strategy and Finance Committeewith the Council. It deals with all aspects of academic management,including finance, and virtually all matters of detail are referred toit by the Senate for decision. It also advises the Strategy and FinanceCommittee on the allocation of resources.The Senior Management Board reports to the Senate and to theStrategy and Finance Committee.University and FacultyBoardsWithin the University and in accordance with a published strategy,teaching and learning is developed, regulated and co-ordinated bythe University Board for Teaching and Learning, chaired by therelevant Pro-Vice-Chancellor, and by Faculty Boards for Teaching andLearning chaired by the appropriate Faculty Director of Teachingand Learning. In parallel with this and similarly in accordancewith a published strategy, research is developed and co-ordinatedby a University Board for Research and Innovation, chaired by therelevant Pro-Vice-Chancellor and by Faculty Boards for Researchchaired by the appropriate Faculty Director of Research. TheUniversity Boards for Teaching and Learning and for Research andInnovation report to the Senate.Issues of overarching policy and resource are considered at Facultylevel by the four Faculty Management Boards, which have formalcommunication with the relevant Faculty Boards for Teaching andLearning and for Research. Faculty Management Boards report to theSenate.There are some sixty or so other committees and boards, on certainof which members of the Council are invited to serve, normally forperiods of three years at a time.14
Handbook for members of CouncilThe powers and duties ofthe Officers of the UniversityVisitorChancellorVice-ChancellorPresident and Vice-Presidents of the CouncilDeputy Vice-ChancellorHer Majesty The Queen, normally acting through the Lord President ofthe Privy Council, has the power to direct an inspection of the University.The Chancellor is the Chief Officer of the University. He presides at theyearly meeting of the University Court and formally confers degrees buthas no other statutory duties. However, he plays an important part inrepresenting the interests of the University in general.The Vice-Chancellor has ‘a general responsibility to the Council for maintainingand promoting the efficiency and good order of the University’(Statute V). He acts both as its academic leader and in many respects as itsChief Executive; and is its principal disciplinary officer. He is Chairmanof the Senate and the Senior Management Board and is an ex-officiomember of all major committees in the University, many of which hechairs. He represents the University on Universities UK, the body representingall higher education institutions and is the principal channel ofcommunication with the Higher Education Funding Council for England,other universities, outside bodies and the general public.The President of the Council is Chairman of the Council and of theStrategy and Finance Committee. He is concerned, both formallyand informally, with all the major financial and policy-makingdecisions of the University and works closely with the Vice-Chancelloron broad issues of strategy and development.The Vice-Presidents of the Council act as the President’s deputies andserve on many of the major University committees.The President and Vice-Presidents (who are all ‘lay’ officers) areappointed by the Council from among its members and hold officefor three years, being then eligible for reappointment for a secondterm and, exceptionally, for a third and final consecutive term.The Deputy Vice-Chancellor is appointed by the Council from among themembers of the Senate, the professoriate, or former Deans. He holds officefor four years and is eligible for reappointment. He deputises for the Vice-Chancellor when necessary and relieves him of a number of day-to-dayresponsibilities, and is consulted by him on a wide variety of issues.15
Pro-Vice-ChancellorsDeans of the FacultiesUniversity Secretary andDirector of GovernanceDirector of Student andAcademic ServicesDirector of Estates andFacilities ManagementDirector of Finance andCorporate ServicesDirector of ExternalAffairsThe three Pro-Vice-Chancellors are each appointed by the Councilfrom among the members of the Senate, the professoriate, or formerDeans. They hold office for four years and are eligible for reappointment.They deputise for the Vice-Chancellor when necessaryand relieve him of a number of day-to-day responsibilities, and areconsulted by him on a wide variety of issues.The Deans of the Faculties are elected by their respective FacultyManagement Boards augmented for this purpose by the relevantSchool Directors of Teaching and Learning and of Research. Theyserve for four years and chair their Faculty Management Boards.They serve on the Senior Management Board and advise the Vice-Chancellor on all matters, both academic and financial, concerningtheir Faculty in particular and the University as a whole.The University Secretary is responsible for conduct of Councilbusiness and as such has direct access to the President.He also acts as Secretary to the Senate, Strategy and FinanceCommittee, Appointments Committee, Audit Committee, RemunerationCommittee and all the Joint Standing Committees of theCouncil and the Senate, and has oversight of a number of statutoryand compliance functions. He is also Secretary to the Trustees of theUniversity’s two pension funds for non-academic staff.The responsibilities of the Director of Student and Academic Servicesinclude the Enhancement of Learning and Teaching Support; IT Services;the University Library, Museum and Collections; Planning Support; admissions;and a range of student services including pastoral provision.The responsibilities of the Director of Estates and FacilitiesManagement include all property and estates matters, and other nonacademicservices such as catering and halls administration, sportsfacilities and security services.The Director of Finance and Corporate Services is responsible for allfinancial matters of the University, including presentation of finalaccounts and estimates, HEFCE grants, banking, audit and privateconsultancies, purchasing, research support, industrial liaison andall financial matters relating to the Strategy and Finance Committeeand the Senior Management Board, and to the InvestmentsCommittee. He is also responsible for human resources.The Director of External Affairs is responsible for development,alumni relations, communications, marketing and recruitment.16
FinanceIn 2009–10 the University’s revenue income was made up as follows:£K %HEFCE/TTA recurrent block grant 55,623 24.6Other specific HEFCE/TTA grants 9,712 4.3Fees and support grants 70,455 31.1Endowments and donations 2,321 1.0Residences and catering 20,551 9.1Other general income 19,971 8.8Research grants and contracts 31,720 14.0Other services 16,065 7.1221,821 100.0Over the years the University has been under increasing pressureto derive more of its income from sources other than the mainfunding body. The combined revenue income from HEFCE and homefull-time student fees has diminished from 63.7% in 1984-85 to 42.6%in 2009-10.SubsidiariesThe University is the sole member of The University of ReadingScience & Technology Centre Ltd. This company is limited byguarantee.The University is the sole member of The Reading Real Estate FoundationThis is a company limited by guarantee and is a registeredcharity.The University owns all the shares of the following:Witan College Ltd (ceased trading)Whiteknights Farming Ltd (ceased trading)Whiteknights Energy Ltd (ceased trading)University of Reading (Greenlands) Ltd (ceased trading)Henley Business School LtdHenley Business School (New Zealand) LtdHenley Business School Ltd – Hong KongHenley Business School – South AfricaHenley Management College (1945) Ltd – charityRREF Ltd (ceased trading)Henley Management College – South AfricaRUMAL Reading Malaysia (not yet trading)Henley Business School – Germany (not yet trading)All taxable profits generated by UK non-charitable subsidiaries aredonated to the University under deed of covenant.ExpenditureExpenditure in 2009–10 was as follows£K %Academic departments 105,982 46.9Academic services 14,561 6.5Administrative and central services 27,841 12.318
Handbook for members of CouncilPremises 35,982 15.9Residences and catering operations 12,963 5.7Research grants and contracts 22,377 9.9Other services rendered 6,323 2.8226,029 100.0Decisions on the internal allocation of University funds are madeby the Council on the recommendation of the Strategy and FinanceCommittee. The process of allocating funds begins at School level,with Heads of School submitting proposed income and expenditureagainst each of the budget heads for the following financial year(which runs from 1 August, although the ‘academic year’ begins on1 October). They are considered in detail by the Senior ManagementBoard which then forwards its recommendations to the Strategy andFinance Committee which in turn, and after further examination,submits them to the Council. The allocation of consumables votes ismade initially in the form of global sums for each Faculty. IndividualDeans then settle the allocations within that sum for each School intheir Faculty, in consultation with the Deputy Vice-Chancellor.Incentive additions to consumables votes are made to departments(which are thereby encouraged to increase the earning capacity ofthe University) as follows:Research Council grantsOther grants and contractsOn projects which commenced before full economic costing(fEC) was implemented, overheads or recoveries of indirect costs,(normally 46% of staff costs) are shared equally between central andschool funds.For newer research projects, costed using the fEC methodology, thedifference between the price and the direct costs of the project issplit as follows:-25% to the school, 65% to central funds and 10% to the researchincentive fund.On projects which commenced prior to the implementation of fEC,a share (usually 50%) of overheads negotiated on the contract goes tothe school, subject to a minimum 15% for central funds.For newer grants and contracts, costed using the fEC methodology,the difference between the price and the direct costs of the project issplit as follows:-25% to the school, 65% to central funds and 10% to the researchincentive fund.Self-financing coursesConsultancyThe balance of fee income, after payment to central funds of direct costsplus 20% (25% if the course results in the award of a diploma or certificate).A share of overheads negotiated on the contract.19
FinanceEndowment fundsThe University has received gifts and bequests from various benefactors.These monies were given to fund either specific scholarships,prizes or are available for specified purposes. The funds are investedand the dividends and interest received are used by the University tosponsor scholarships, prizes and general University purposes in linewith the terms of the original gift or bequest.Other fundsThe University is sole Trustee of a number of Trusts:-Research Endowment TrustNational Institute for Research in Dairying TrustHugh Sinclair Trust, andBeckett International FoundationGreenlands TrustThe Research Endowment Trust is the most significant Trust infinancial terms with reserves of £54m at 31 July 2010. The Trustholds land, buildings and investments. The proceeds of sales of landowned by the Trust have been re-invested by the Trust.The National Institute for Research in Dairying Trust held reserves of£17m at 31 July 2010, and its objectives are to promote and carry onresearch into agriculture or food.The Hugh Sinclair Trust was formed in 1995 to support research intohuman nutrition. The Trust’s reserves stood at £5m as at 31 July 2010.The Trust makes annual donations to the University to fund theHugh Sinclair Chair and contribute to staff working in the area ofhuman nutrition.The Beckett International Foundation has reserves of £54K and worksto promote research and provide education in connection with theworks of Samuel Beckett.The Greenlands Trust was set up following the merger with HenleyManagement College to hold the associated land and buildings forthe benefit of the Henley Business School.Timetable for financialstatementsAnnual accountsProvisional estimatesBudget monitoring reportsThe normal timetable for financial statements is as follows:For the Annual Accounts the Audit Committee receives and considersdraft accounts of the previous year during the Autumn Term; theaudited version of the accounts is submitted to the Council in November.The Senior Management Board receives the provisional budget of therevenue account for the following financial year and reports on theseto the Strategy and Finance Committee in April. The Council receivesthe provisional budget in June/July.The Strategy and Finance Committee (or the Senior ManagementBoard in any month when there is no meeting of the Strategy andFinance Committee) receives regular management accounts whichgive the latest projected figures for budget heads.20
Academic organisationHistorically the University has grouped its academic departmentsinto Faculties of related disciplines. At present there are fourFaculties (Arts, Humanities and Social Science; Life Sciences; Scienceand Henley Business School) each comprising between three and fiveacademically related Schools. All academic departments have beenaggregated into Schools. Some Schools are monolithic (e.g. Schoolof Systems Engineering); others have retained constituent departments(e.g the School of Humanities with constituent departments ofClassics, of History and of Philosophy).‘The Faculty ofScience includesa wide range ofstrong and activedepartments,including theDepartment ofMeteorology whichis at the forefrontof its discipline.’The University offers undergraduate and postgraduate courses, andundertakes research, in all the main subject areas with the singleexception that it has no undergraduate Medical School. It has particularstrength in subjects which concern the land, its Faculty of LifeSciences (including Agriculture) has an exceptionally strong interestin Food Security. The department of Real Estate and Planning isa constituent of the Henley Business School. Departments in theFaculty of Arts, Humanities and Social Science include a departmentof Typography & Graphic Communication, unique in the country.The Faculty of Science includes a wide range of strong and activedepartments, including a department of Meteorology which is at theforefront of its discipline and benefits from fruitful collaborationwith national and international weather centres (the MeteorologicalOffice and the European Centre for Medium-Range WeatherForecasts). Following the recent establishment of a School ofPharmacy, the University began to offer undergraduate programmesin that subject in 2005.In 2010-11 the total number of active students was 17,667 of whom12,613 were full-time. Of all students there were proportionatelymore women (52.8%) than men (47.2%). Of our UK-based students,some 19% (2,846) were paying overseas fees.Undergraduate students follow programmes lasting three (or in somecases four) years. There is a wide range of postgraduate programmes,including three-year research programmes leading to the degreeof PhD, one-year Masters programmes, and courses leading to theaward of a diploma or certificate. There is a range of short coursesfor professional or mid-career training and development and theUniversity is actively seeking to widen access to all its courses byencouraging the entry of those in mid-career or without the tradi-21
Academic organisationtional qualifications of the school-leaver. A range of part-time degreecourses are offered within the Faculty of Arts, Humanities and SocialScience and executive education is a particular specialism of theHenley Business School.In addition to the recognition of the need to develop and encourageapplications from a wider range of potential students, the Universityis also seeking to increase the collaboration that already exists withindustrial and commercial organisations, by offering, for example,consultancy by its staff, use of its equipment, jointly sponsoredresearch, and services such as analysis, testing or pilot processing.22
Teaching, researchand learning servicesUniversity Library and University Museums and Special Collections ServicesThe Library supports University research, teaching and learning byproviding access to, and the skills to exploit, the world of information.The Library provides access to electronic sources of information suchas remote datasets and over 22,000 electronic journals. Training andguides are offered to help users make the most of these and otherresources. The Library holds well over 1.1 million printed books,journals, pamphlets, maps and multimedia materials. At the heartof the Whiteknights campus, the University Library is a popular hubfor students. The ground floor has a variety of group and informalstudy spaces, a limited-loan Course Collection area and a café to suitcontemporary student needs. There are more study rooms on the 5thFloor. Well used printed material is shelved on the 2nd, 3rd and 4thsubject floors. From 2011 lower-use research material was relegatedto a University-leased store as part of our 2009-2013 CollectionsProject. This Project also rationalised and reorganised both study andcollections space following the closure of the former site library atBulmershe Court in July 2011.The Library hosts PCs in the S@iL (Student Access to IndependentLearning) Facilities on the 1st Floor. This includes group study, disabledand presentation practice equipment, open access PCs and several PCclassrooms, the Study Advice and Mathematics Support Team and anIT Services Help Counter.Further information is on the Library’s website at:www.reading.ac.uk/libraryUniversity rare book and archive collections are available throughthe Special Collections Services:www.reading.ac.uk/special-collectionsUniversity Museums andCollectionsThe University of Reading is recognised for the exceptional diversityand quality of its museums and collections, including three Designatedcollections of national and international importance.23
Teaching, research and learning servicesThese include outstanding departmental research and teachingcollections (such as those of the Department of Typography and GraphicCommunication, and the Herbarium), as well as smaller teaching setssuch as a fine representative collection of sixteenth to twentieth centurydrawings by European artists in the Department of Art.Larger museums, accessible to the public, are detailed below: theMuseum of English Rural Life (MERL) and departmental museums(Ure Museum, Cole Museum)The Museum of English Rural LifeThe Museum of English Rural Life was founded by the University in1951 to record and interpret change in farming and the countrysideover the centuries. Its collections are the most comprehensive oftheir kind and comprise extensive holdings relating to agriculturaltechnology and rural life; an archive of technical, business andinstitutional records connected to the countryside; photographic,film and sound records; an outstanding specialist library of booksand journals. The Museum is accessible to all and offers extensiveprogrammes of activity for schools, the general public and specialistaudiences, as well as providing study facilities for academics andothers wishing to use the collections for research purposes.Financial revenue support is currently provided by the HEFCE HigherEducation Museums, Galleries and Collections Fund and fundinghas been agreed for a further year. In 2005, the Museum moved to anew home, the former St Andrew’s Hall site in Redlands Road. Thebuildings have been converted to provide high quality accommodationfor the library and archive while a new exhibition building atthe rear now houses the object collections. This substantial capitaldevelopment, costing in excess of £11 million, was supported by agrant of £5.17 million from the Heritage Lottery Fund and the proceedsof a major fund raising campaign. The Museum has been successfulin a variety of funding projects in the last year including grants fromthe Foyle Foundation to support a project to digitise photographs fromthe collection, a Big Lottery grant for a community gardening projectinvolving volunteers and funding from the Esmee Fairbairn/MuseumsAssociation Effective Collections scheme to develop the accessibilityand use of the museum catalogues, building on recent advances inour cataloguing system. We are continuing to deliver undergraduatemodules in collections-based learning at MERL.Telephone: +44 (0)118 378 8660 www.reading.ac.uk/merlThe Cole Museum of ZoologyAssembled principally during the period 1907 to 1939 by the firstProfessor of Zoology at Reading, Francis Cole, the collection reflectsthe diversity of animal life. Around 95% of the specimens are innine phyla called the ‘big nine’ which reflects the fact that 95% of allanimals are members of one of these phyla (Annelida, Arthropoda,Chordata, Cnidaria, Echinodermata, Mollusca, Nematoda, Platyhelminthaand Porifera). Unlike similar collections at other UKUniversities, the Cole Collection remains intact. Many specimens24
Handbook for members of Councilwere donated by famous scientists or governments. The collectionalso has a nearly complete and unique collection of expert teachingdissections which have attracted both international and nationalattention. Recent HEFCE funding through CETL-AURS has led to thefurther integration of the collection into undergraduate teaching,including the production of a CD-ROM based on the museum tosupport teaching of Animal Diversity. Financial support from theArts and Humanities Research Council has supported the redisplayof the collection in taxonomic order (in 2003) and to much-neededconservation work (in 2007).The Museum (in the School of Biological Sciences building) is openweekdays 9.00 am – 4.30 pm, excluding public holidays.‘The Ure Museumis an internationalscholarly resource,which attractsgroups from localschools and otheruniversities, inaddition to its use byUniversity of Readingstudents.’Special CollectionsThe Ure Museum of Greek ArchaeologyThe fourth most important collection of Greek ceramics in Britain,it was named for Professor P.N. Ure, the first Professor of Classicsat Reading (1911 to 1946), and his wife and former pupil Annie D.Ure, curator of the Museum until her death in 1976. In 1922 theUres formally established a departmental museum, as an aid to theteaching of Ancient History and Greek Archaeology. In this museum,Percy and Annie Ure consolidated the University’s holdings of Greekand Egyptian antiquities (Petrie bequest ; British School ofArchaeology in Egypt ; Barry bequest ; British Museum), added some small purchases and eventually gifts from theFriends of the University, members of the academic staff, and otherinterested persons.The Ure Museum is an international scholarly resource, whichattracts groups from local schools and other universities, in additionto use by University of Reading students. Teaching and learning inthe museum comprises seminars and project work, including dissertations.An extensive volunteer programme involves students andothers in the work of the museum—research, curation, outreach,marketing. Since 2001, the Museum’s holdings—photographs andother archives, as well as artifacts—have undergone a digitizationprocess, culminating in its online database: http://lkws1.rdg.ac.uk/cgi-bin/ure/uredb.cgiThe Ure Museum is housed in Room 38 HumSS (in the Department ofClassics), and is open to the public from 9am to 4:30 pm weekdays.Telephone: +44 (0)118 378 6990 Fax: +44 (0)118 378 8919www.reading.ac.uk/ureUniversity rare books and archives – available at the Special CollectionsServices, Redlands Road adjacent to the Museum of EnglishRural Life – benefit all levels of the University, as well as scholarsfrom around the world. Printed materials include the OverstoneLibrary, largely collected by the nineteenth-century politicaleconomist J.R. McCulloch; the Cole Library of Early Medicine andZoology; the library of the historians Sir Frank Stenton and Doris,Lady Stenton; the literature collection of the composer Gerald Finzi;the Children’s Collection; the Robert Gibbings Collection. Twoarchive collections – detailed below – hold MLA ‘Designated’ status,25
Handbook for members of CouncilNetworked computers in the University have access to ActiveDirectoryand DNS services, NFS/SMB fileserving, electronic mail serverssupporting MAPI, SMTP, POP and IMAP, UNIX hosts, WWW serversand a pair of 1 Gb/s connections via SuperJANET, the nationaleducation network, to the Internet. Wireless networking is availablein communal areas on all campuses. IT Services provides technicalsupport for the University’s central World Wide Web servers andVirtual Learning Environment.IT Services also supports 18 rooms containing clusters of PCs (about400 in total) distributed throughout the University, which are usedfor teaching and private study. The University’s central administrativecomputing is carried out on Windows-based SQL Server systems.Around 60 people work for IT Services. The department is organisedinto groups: Systems and Communications, Administration, InfrastructureOperations, Corporate Information Systems Support andDirectorates and Schools Liaison. Much of the department’s work isproject-based, with members of several groups typically involved inthe delivery of each new or enhanced service.27
Student residence,welfare and servicesHalls of residenceFrom its beginning Reading has been a residential University:Wantage Hall, opened in 1908 through the generosity of LadyWantage, was the prototype of many foundations elsewhere. TheUniversity currently owns nine Halls of Residence together withHillside and Martindale Court student housing (about 3,500 rooms inall in 2011-12) all offering accommodation to both men and women.Accommodation ranges from self-catered rooms without handbasins(and with shared kitchens and bathrooms) at Sibly Hall, tofully-catered en suite rooms at Mackinder Hall. The Halls have beengrouped into four Groups for administrative purposes. Care has beentaken to ensure that each Hall retains its individual character andethos. Management of the Halls is carried out by a team of GroupResidence Managers and their deputies. Each Hall has a Warden whohas responsibility for welfare and disciplinary issues.Benyon Hall (formerly known as the Student Village) providing 390en suite self-catered rooms on a site next to Sherfield Hall, is operatedby a third party provider of student accommodation, University PartnershipProgrammes (UPP). Management staff at Benyon Hall areappointed by UPP, but the majority of the rooms in 2011-12 have beenallocated to new students by the University Accommodation Team.A second UPP Hall, St George’s, offers 426 self-catered rooms. Thisaccommodation is managed by University staff.Childs and Bridges Halls closed in July 2010 to be replaced by twonew Halls – Mackinder and Stenton (Phase I) which opened inSeptember 2010. Together with Windsor Hall these now form thePark Group clustered around a central catering/social hub. The newaccommodation at Mackinder and Stenton comprises 965 premiumen-suite rooms which have proved very popular so far with applicants.Construction of the new Childs Hall is well under way,comprising premium en-suite rooms as well as a development of“town houses”. This accommodation is due to open in time for the2012-13 intake, replacing Bulmershe and Sibly Halls which are due toclose in July 2012.Hillside Court provides purpose-built accommodation where 109mainly postgraduate students live in a small estate of 15 houses. AtCreighton Court there are 24 purpose-built flats suitable for one ortwo-child families. In addition, the University owns a number of28
Handbook for members of Councilhouses close to the Whiteknights campus which are converted intoaccommodation suitable for around 100 families, couples and singlemature students.At the time of going to press the University was in the final stages ofnegotiations with UPP regarding the transfer of the majority of theresidential estate. It is intended that operational handover will takeplace in early January 2012. The University will retain responsibilityfor welfare and pastoral provision within Halls.Operation of Hillside and Martindale Courts and part of the OffsiteHousing portfolio will be retained by the University’s Estates ManagementDepartment.UniversityDental CentreThe University Dental Centre is situated in Northcourt Avenue.University CounsellingServiceStudents’ UnionThe University Counselling Service is available to all registeredstudents. There is a charge for staff counselling, although referralsmay be made via HR or Occupational Health. For further informationcontact reception on 0118 9751823.The Students’ Union provides representation, support and adviceto the University’s student population. Leading the way nationally,the Students’ Union has changed its governance structure to makethe distinction between representation and political issues, andissues of a trustee nature more clearly defined in the democraticprocess. The organisation is governed by a Board of Trustees andlead by the President with the support of four Vice Presidents whocollectively act as both trustees and political representatives. TheStudent Officers represent students within the University, the localcommunity and nationally.Reading University Students’ Union is the centre for student lifeon Whiteknights campus, with shops, bars, membership services,executive offices and the nursery. In addition at Bulmershe Court theUnion operates a shop.Recent years have seen the Union develop the media skills ofstudents, with the re-launch of the www.rusu.co.uk website,the fortnightly publication of Spark* with its 3000 printing runand the student radio station – Junction11 broadcasted onlineat http://junction11.rusu.co.uk and a Student Television SocietyRU:ON found at www.ruon.tv.In terms of support to students, the Union offers independent advicein its Membership Services Centre named the Hub. Here studentsare able to get free, confidential, student-centred advice, alongsideinformation and support for sports clubs and societies, guidance anddirection for volunteers, and the development of course reps and theReading Experience and Development (RED) Award.The Students’ Union boasts a number of social spaces and services forits members including a spacious club named 3sixty where a large29
Student residence, welfare and servicesvariety of entertainment is provided for students, a continental stylecoffee shop serving breakfast and light lunches named Café Mondialand a traditional student pub named Mojos. The Hub offers facilitiesfor student volunteers, access to independent advice and representation,and puts student development at the heart of the Union’s work.More recently, the newly built Students’ Union nursery has drasticallyincreased the numbers of both staff and students who are ableto have their children looked after on campus. The old nursery isnow named “The Lounge”, and is used by the Union as a non-licensedsocial space which will house the new television and radio centreand serves as a meeting space for a number of the Union’s societiesin addition to offering social space to students wishing to meet in anon-licenced environment.Constitutionally the Students’ Union is required to hold a referendumof its members regarding its on-going affiliation to theNational Union of Students every 3 years. This referendum is due totake place in the academic year 2011/12.Reading University Students’ Union continues to be regarded highlyand is considered one of the leading students unions in the UK,contributing significantly to the National Union of Students andengaging extensively with local and national government. In recentyears RUSU has gained the highly accredited Silver Standard in theStudents’ Union Evaluation Initiative amongst other awards. RUSUremains a not-for-profit organisation, led by students for students.Sport and recreationStudent Employment,Experience and CareersCentreThe University Director of Sport and Recreation works closely withthe Students’ Union to deliver the Sports Strategy 2007-12. Key aimsof the strategy are to encourage participation as well as developingexcellence in a small number of focus sports such as rowing, rugbyand basketball.Reading has a thriving sports scholarship scheme; after the successof the Beijing Olympics when Reading students/alumni won twosilver medals and one bronze a number of students are hoping to beselected for the London Olympics in 2012.The Sports Strategy identifies the need for on-going investment infacilities and the important part sport plays in the recruitment ofstudents. The SoccerPark was opened in September 2009 and a caféopened in February 2011. The Sports Management Committee isconsidering closure of indoor sports facilities at Bulmershe and theimpact this will have on the SportsPark and the refurbishment orreplacement of the Athletics Pavilion, which is needed within thenext two years.The newly established Student Employment, Experience and CareersCentre (SEECC) was launched on 1 August 2011 and is based in theCarrington Building, Whiteknights. SEECC has been set with theexplicit aim of ensuring Reading students get the best possible access to30
Handbook for members of Council‘real world’ opportunities to help them build their transferable skills,career confidence and improve their employability. SEECC will help tosource and develop placement opportunities from helping identify andrecruit employers through to the welfare of students while on placements.‘The University alsoprovides studentswith the opportunityto participate ina range of extracurricular placementand employabilityschemes.’Career Learning and guidanceStudents on undergraduate programmes already benefit from havinga programme of career management skills embedded in their degree,the only such degree-accredited scheme in the UK. SEECC willcontinue to offer support and guidance for students via a focussedcoaching process that helps them improve their employability,identify relevant career choices and then ensure they prepare highquality applications and CVs to access placements and graduate levelrecruitment.Student employment skill development recognized through REDIn addition to this, SEECC will also be responsible for the ReadingExperience and Development (RED) Award, a new award whichallows Reading students to gain additional skills to ensure they standout from the crowd with prospective employers. www.reading.ac.uk/internal/readingexperienceanddevelopmentaward/reda-home.aspxEnhancing placement opportunitiesWith the University formalising placement opportunities into allundergraduate degree programmes for the start of the 2011-12session, there will be further enhancements to the commitmentto students’ experiential learning as part of their academic studies,which is guaranteed to give them the competitive edge in accessinggraduate level jobs. Students may be recruited by employers directlyas a result of their placement or through the added skills, confidenceand career readiness they have gained on top of their degree.The University also provides students with the opportunity toparticipate in a range of extra curricular placement and employabilityschemes, including the Summer Employment Experienceand Discovery (SEED) internship scheme and UROP and the UndergraduateResearch Opportunities Programme. SEED internships willtypically last for eight weeks over the summer with local employers.Students work on real world projects within their area of interestmaking the most of their key skills and capabilities. UROP is afunded scheme and is a 6 week programme available for 55 studentsin the summer of 2011-20012, based on research projects that ouracademics are involved in, and gives students who are interestedin research as a career, a real insight into the skills and experiencerequired as well as valuable work experience.31
SocietiesConvocationThe Friends of theUniversity of ReadingThis is a formal body which exists under the Charter and Statutes ofthe University and includes all members of academic staff, Graduates,Diploma and Certificate holders. Twelve members are appointedto serve as members of the University Court and one member isappointed to serve on the University Council.The administration of Convocation is undertaken by the Developmentand Alumni Relations Office in conjunction with its otheralumni activities.The Friends of the University came into existence at a public meetingheld at the University on 15 March 1927, one year after the Universitywas granted its Royal Charter, with the object of bringing friendsand supporters into contact with the University and of enablingthem to promote its interests and welfare. The association’s income,derived from subscriptions and donations received from members, isused to assist the University in concrete ways.Over the years The Friends have funded numerous projects anditems of equipment, including a bridge across the Upper Lake inWhiteknights; lecterns for the Great Hall and refurbishment of itsorgan; a cricket strip and covers for the SportsPark; paintings forthe Agriculture Building; coin preservation and display boards forSilchester, and various plantings.Recently The Friends have contributed towards furniture for the Schoolof Psychology; a stained glass window for the Museum of English RuralLife; a top of the range, smaller, lightweight boat for 8, which can beused by either gender; a safety launch and a range of other equipmentfor the University Boat Club; instruments and a podium for music@reading and furniture for several other Schools and Departments.Twice a year the University provides venues for The Friends to meetfor tea and hear a talk from an eminent member of the AcademicStaff. The association’s active annual programme includes a range ofother events, eg concerts, visits to gardens, and heritage trails.Membership is over 530 and is open to all individuals. Detailscan be obtained from The Secretary, Development and AlumniRelations Office, Blandford Lodge, 1st Floor, University of Reading,Whiteknights, Reading RG6 6AH, Tel. 0118 378 8006, email:email@example.com or www.reading.ac.uk/thefriends32
PublicationsCalendarBooksThe University Calendar is published annually and is the officialhandbook of the University. It includes the Charter, Statutes, Ordinancesand Regulations of the University as well as a complete list ofstaff, membership of committees and the dates of all meetings.The following books, all available in the University Library, aresuggested for further reading about the foundation and developmentof the University:Blouet, B W, Halford Mackinder: A Biography, Texas, 1987.(see especially Chapter 4, Founding Reading University)Brown, C.C. Four Score and more, Reading 2006Childs, W M, Making a University, London, 1933Holt, J C, The University of Reading: the first fifty years, Reading, 1977Smith, E A, History of Whiteknights, Reading, 1957Smith, S. and Bott, M., One Hundred Years of University Educationin Reading: A Pictorial History, Reading, 199233
Appendix 1The Council – Charter and Statutes
Charan Aujla LocalSection nameAppendix 1University Council1. The position of the Council in the University’s governance, its powers and its duties aredefined in the University’s Charter, Statutes and Ordinances.The University’s Charter, Statutes and Ordinances are published in the University Calendarwhich is available from the Communications Office, Tel: 0118 378 8408.2. Article IX of the Charter establishes the Council and defines its powers.CHARTER, Article IX The Councili. There shall be an Executive Governing Body of the University which shall be calledthe Council of the University and subject to this Our Charter and to the Statutes ofthe University shall have the custody and use of the Common Seal of the Universitythe government and control of the finances of the University the management andadministration of the whole revenue and property of the University and the conductof all the affairs of the University and all such other powers and duties as may beconferred upon it by Statute or Ordinance.ii. The Council shall have power to establish and maintain and to administer andgovern whether through the agency of special committees or otherwise institutionsfor the residence of students of the University whether Colleges Halls Hostels orHouses and to license and supervise such institutions.iii. The Council may at any time alter amend or add to these Presents and theirprovisions by a Special Resolution in that behalf and such alteration amendment oraddition shall when allowed by Us Our Heirs or Successors by and with the advice ofOur Privy Council become effectual so that these Presents shall thenceforwardcontinue to operate as though they had been originally granted and made as soaltered amended or added to in a manner aforesaid. This Article of these Presentsshall apply to this Our Charter as altered amended or added to in manner aforesaid.A Special Resolution means a Resolution passed at one Meeting of the Council andconfirmed at a subsequent Meeting held not less than one calendar month nor morethan five calendar months after the former provided that the Resolution be passed ateach Meeting by a majority of not less than three-fourths of those present andvoting.iv. The first Members of the Council of the University shall be the persons named in thesecond part of the First Schedule to these Presents.3. Statute XIV defines the membership of the Council.Statute XIV: The Councili. The Council shall consist of the following persons:Class 1.The Vice-ChancellorThe Deputy Vice-ChancellorThe Pro-Vice-Chancellors.©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the Council Appendix 1Class 2.Class 3.Class 4.Class 5.Class 6.Class 7.Class 8.Fifteen persons not being employees or registeredstudents of the University to be appointed by the Council.The Deans of the Faculties.One member of the Senate not being a registered student of theUniversity to be appointed by the Senate.One member of the Academic Staff of the Universityelected fromamong their own number in such manner and under such conditionsas are prescribed by the Council for the election of members of theAcademic Staff to the Senate under Statute XVI.One member of the staff of the University not being amember of theAcademic Staff elected in such a manner as the Council shall fromtime to time determine.One member of Convocation not being an employee or registeredstudent of the University to be appointed as provided in Ordinances.Two officers of the Students’ Union and two alternates as determinedfrom time to time by the Council after consultation with the Students’Union.ii. The Vice-ChancellorThe Deputy Vice-ChancellorThe Pro-Vice-ChancellorsThe Deans of the Facultiesshall be members of the Council for the time during which they hold theirrespective offices.iii. Persons included in Classes 2 4 5 6 and 7 shall be members of the Council for threeyears from their respective dates of appointment.iv. All casual vacancies shall be filled by the body which appointed the representativewhose place has become vacant. Any person appointed to fill the casual vacancy shallbe appointed only for the remainder of the period for which the person whose placehas become vacant was appointed.v. All appointed members of the Council shall be eligible for reappointment.vi. Any appointed member of the Council may resign by writing addressed to theUniversity Secretary.vii. No person shall be capable of being a member of the Council in more than onecapacity.viii. Student members of the University shall be required to withdraw from a meetingwhen it is declared by the Chairman of the meeting that the meeting is about todiscuss a reserved area of business and shall not return to the meeting until thediscussion on the reserved area of business is concluded. Minutes and other recordswhich relate to the discussion of reserved areas of business shall not at any time bemade available to student members. Reserved areas of business include mattersaffecting the appointment promotion and personal affairs of individual members ofthe staff of the University and matters affecting the admission and academicassessment of individual students. Subject to the above the Chairman may decide in©University of Reading 2011 Monday, 14 November 2011 Page 2
Handbook for members of the Council Appendix 1any case of doubt whether a matter is a reserved area of business or not and hisdecision shall be final.4. Statute XV further defines the powers of the Council and incorporates most of thereferences found elsewhere in the Charter and Statutes.STATUTE XV: Powers of the CouncilSubject to the Charter and the Statutes and any Ordinances and Regulations made inpursuance thereof the Council shall in addition to all other powers vested in them havethe following powers:i. To appoint the Vice-Chancellor after consultation with the Senate.ii. To appoint the Deputy Vice-Chancellor and the Pro-Vice-Chancellors afterconsultation with the Senate.iii. To elect their own President and Vice-Presidents who shall act at meetings of theCouncil as Chairman and Vice-Chairmen respectively.iv. To elect and appoint after report from the Senate and in accordance with aprocedure prescribed by Ordinance the Professors and Readers of the University.v. To elect and appoint after report from the Senate all academic officers of theUniversity other than Professors and Readers and to elect and appoint the Wardensof Colleges Halls of Residence and Hostels owned and controlled by the University.vi. To elect and appoint after report from the Senate the Curators of the Library and theLibrarian.vii. To elect and appoint a secretary to the Council and other officials of the University.viii. To confer after report from the Senate and subject to conditions prescribed byOrdinance the title of Emeritus Professor or Honorary Professor.ix. To appoint on the recommendation of the Senate the External Examiners of theUniversity.x. To draft Statutes as and when they see fit provided that no Statute shall be submittedwithout giving the Senate the opportunity of reporting thereon.xi. To make Ordinances for any matters in respect of which Ordinances are or may beauthorised to be made provided that any Ordinances relating to courses of studydegrees or diplomas and affiliation of Colleges or recognition of Teachers or anysimilar academic matters shall not be made without giving the Senate theopportunity of reporting thereon.xii. To make Regulations for any purposes for which Regulations are or may beauthorised to be made.xiii. To institute after report from the Senate Professorships Readerships Lectureshipsother teaching offices Fellowships Scholarships and Exhibitions.xiv. To abolish or hold in abeyance after report from the Senate any ProfessorshipReadership or other academic office in the University.xv. To review the instruction and teaching of the University.xvi. To promote research within the University and to require reports from time to timeon such research.xvii. To review refer back control amend or disallow any act of the Senate and givedirections to the Senate provided that any act of the Senate which is amended by theCouncil shall be referred again to the Senate for consideration and report beforebeing carried into effect and provided that no new degree or diploma be establishedin the University without the concurrence of the Senate.©University of Reading 2011 Monday, 14 November 2011 Page 3
Handbook for members of the Council Appendix 1xviii.xix.xx.xxi.xxii.xxiii.xxiv.xxv.xxvi.xxvii.xxviii.To propose to the Senate the names of recipients of honorary degrees and to approveor disapprove the names of persons proposed by the Senate as recipients of suchdegrees. No person shall be admitted by the University to an honorary degree whosename has not been approved for that purpose both by the Council and by the Senate.To govern manage and regulate the finances accounts investments property businessand all affairs whatsoever of the University and for that purpose to appoint Bankersand any other officers or agents whom it may deem expedient to appoint.To invest any moneys belonging to the University including any unapplied income insuch stocks funds fully paid shares or securities as the Council shall from time totime think fit whether authorised by the general law for the investment of trustmoneys or not and whether within the United Kingdom of Great Britain andNorthern Ireland or not or in the purchase of freehold or leasehold hereditaments inthe United Kingdom including rents with the like power of varying such investmentsfrom time to time provided that the Council may in its discretion retain as long as itshall think fit any investment given or bequeathed to the University although notcoming within the description of investments authorised as aforesaid.To borrow money on behalf of the University and for the purpose (if theCouncil think fit) to mortgage all or any part of the property of the Universitywhether real or personal or give such other security whether upon such real orpersonal property or otherwise as the Council think fit.To sell buy exchange lease and accept leases of real and personal property on behalfof the University.To enter into vary carry out and cancel contracts on behalf of the University. Anycontract entered into on behalf of the University may be made in any mannerauthorised by law for the making of contracts by or on behalf of the Companiesincorporated under the Companies Consolidation Act 1908.To provide land buildings furniture equipment apparatus and other means neededfor the work and welfare of the University.To entertain adjudicate upon and if thought fit redress any grievances of the Officersof the University the Professors Readers Lecturers Teachers Fellows and othermembers of the Academic Staff the Graduates and students of the University and theUniversity servants who may for any reason feel aggrieved.To select a Seal Arms and a Mace for the University and have the sole custody anduse of the Seal.To exercise all such powers as are or may be conferred on the Council by the CharterStatutes and Ordinances and to carry the Charter Statutes Ordinances andRegulations into effect.To delegate powers in accordance with Statute XXVIII and with proceduresprescribed by Ordinance save that(a)the ultimate accountability of the Council and its corporateresponsibility for actions taken under delegated powers may notitself be delegated.b) the Council may not delegate its powers to reach a decision under10 (2) of Statute XXXIII.©University of Reading 2011 Monday, 14 November 2011 Page 4
Handbook for members of the Council Appendix 15. The following references amplify or add to the provisions of Article IX of the Charter andof Statute XV:Charter XV (2) provides for the Council to make or amend Ordinances.Charter XXIII provides for the Council to determine University fees.Statute VI (5) provides for the Council to appoint the Treasurer.Statute X provides for the Council to appoint the Auditors.Statute XXIII confirms the validity of acts or resolutions of the Council notwithstandingvacancies in membership or invalidity in the election or appointment of any de factomember.Statute XXXII (5) defines the arrangements by which Council may permit staff andofficers of the University to remain in post beyond the normal retirement age of 65 years.Statute XXXIII concerns academic staff, their employment, redundancy, discipline,dismissal and removal from office, including for incapacity on medical grounds, appealsand grievance procedures, and defines the role of the Council in all these procedures.6. The following Ordinances define the role of the Council in the area to which each relates:XIXIVXVIXVIIXXIIIXXIVXXVXXIXXXXIVXXXVXXXVIIElection and appointment to Professorships or Readerships or SeniorLectureshipsThe LibraryHalls of ResidenceConduct and Discipline, Neglect of Work and Unsatisfactory Progress,Academic Misconduct and Performance in ExaminationsConferment of the Personal Title of Professor, Reader or Senior LecturerEmeritus and other titlesMuseum of English Rural LifeAppointment of Wardens/Senior Resident Tutors of University HallsRemoval of OfficersThe Students’ UnionHeadships of SchoolsXXXVIII Termination of appointment of Academic Staff by reason of redundancy forfinancial exigency7. In addition the University’s Financial Regulations and its Code of Practice on Freedom ofSpeech impose requirements on the Council. The Council has adopted therecommendations of the Nolan Report and instituted a Register of Interests of members.©University of Reading 2010 Thursday, 21 October 2010 Page 5
Appendix 2Council Standing Orders
Charan Aujla LocalSection nameAppendix 2Council Standing Orders1. Notice of Meetingsi. At least 14 days' notice shall be given of each regular meeting of the Councilnormally through the annually published calendar of meetings.ii. A special meeting of the Council may be called by the President with the agreementof not less than four other members of the Council.iii. A special meeting of the Council shall be called by the President if so requested inwriting by not less than seven members of the Council but the request shall includea general statement of the business to be transacted at the meeting.iv. At least 14 days' notice of any special meeting of the Council shall be given inwriting to all members with a general statement of the nature of the business to betransacted and any such meeting shall not be competent to transact any businessother than the matter in the notice or arising directly therefrom.v. An Agenda for any regular or special meeting of the Council shall be sent to allmembers at least five days before the date of the relevant meeting.vi. For the purpose of (i), (iv) and (v) above notice shall be deemed to have been given oran Agenda sent on the day of dispatch by the University Secretary.2. QuorumThe quorum for meetings of the Council is ten members of whom six must be lay.In the event of a meeting being non-quoratei. No business shall be transacted with the exception of any item judged by theChairman to be urgent and so agreed by all those presentii. unless there is a regular meeting of the Council within four weeks a special meetingof the Council shall be called to transact business deferred from the non-quoratemeeting.3. PersonaliaThe President of the Council shall be Chairman. In the event of the President not beingpresent a Vice-President shall be Chairman and in the event of neither the President noreither Vice-President being present the Council shall elect a Chairman from amongthose persons present who are neither staff nor students of the University.The Chairman shall have a deliberative vote and a casting vote in the case of equality.The Council shall appoint a secretary to the Council, currently the University Secretary.In the event of the University Secretary being unable to act the President shall appoint asubstitute Secretary for such period as he or she may specify.©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the Council Appendix 24. Notice of Businessi. Members of the Council wishing to bring forward any item of business at anOrdinary Meeting shall give written notice of such business to the UniversitySecretary at least 14 days before the date of the meeting.ii. The Chairman shall rule on whether any items of `Any Other Business' be taken. Itwill be expected that normally at least two days' notice will have been given to theChairman or to the University Secretary of any such matter.5. Categorisation of BusinessReserved Business shall be as defined by Statute.6. Resolutionsi. Formal Resolutions to give effect to business transacted by the Council shall beproposed by the Chairman.ii. Other Resolutions may be proposed by any member of the Council provided that theproposal is seconded. Notice of such Resolutions shall normally be given to theSecretary not less than ten days before the relevant meeting.iii. Amendments to Resolutionsa) may be proposed without previous noticeb) shall be required to be secondedc) shall not take the form of a direct negative of a Resolutiond) shall be put before the Resolution to which they refere) in the case of two or more amendments shall be put in an order to bedetermined by the Chairmaniv. Resolutions shall be passed or otherwise by a show of hands unless three or moremembers require a secret ballot in which case ballot papers shall be issued.7. Conduct of BusinessThe Chairman shall rule on any matter relating to the conduct of business at a meeting.8. Register of InterestsAny member having a personal interest in any matter (whether or not recorded in theRegister of Interests) shall declare that interest and such declaration shall be recorded.The member shall withdraw from the meeting in question unless this requirement iswaived by the Chairman.9. Periods of ServiceBeyond the initial period of service, the renewal of any appointment to the Council shallnot be automatic, but be recommended by the Appointments Committee acting asNominations Committee as part of its report on filling vacancies and be subject tosatisfactory performance. Continuous service beyond three terms of three years is notdesirable (although exceptions, such as retention of a particular skill or expertise, maybe permitted). After this point members will normally retire and be replaced by newmembers. There is no bar to a particularly valued member returning to office if avacancy occurs in future years.10. MinutesMinutes shall be prepared by the University Secretary and shall be circulated tomembers with the Agenda for the meeting at which they are to be confirmed.©University of Reading 2011 Monday, 14 November 2011 Page 2
Handbook for members of the Council Appendix 211. DelegationThe Council may delegate powers under Statute XXVIII and may from time to timedelegate powers to Officers for a specified period. In both cases delegation shall be madeby Resolution.12. Suspension of Standing OrdersWith the exception of (b) above (Quorum) a Standing Order may be suspended for anyspecific item of business if a motion to that effect has been passed by two-thirds of thosepresent and voting.October 2011K N HodgsonUniversity Secretary©University of Reading 2011 Monday, 14 November 2011 Page 3
Appendix 3Delegation of powers by the Council
Charan Aujla LocalSection nameAppendix 3Delegation of powers by the CouncilThe Council is authorised to delegate powers under the terms of Statute XV (28), StatuteXXVIII and Ordinance XXXVIII.Record of Delegated Powers1. Standing delegations authorised by Statute and OrdinanceVarious powers relating to the removal of Staff (Statute XXXIII)Elections and Appointments to Professor, Reader and Senior Lecturer (Ordinance XI)Appointment of Librarian (Ordinance XIV)Disciplinary Appeals (Ordinance XVII)Conferment of Personal Title of Professor, Reader or Senior Lecturer (Ordinance XXIII)Appointment of Wardens/Senior Resident Tutors (Ordinance XXIX)2. Standing delegations by Resolutioni. to the Strategy and Finance Committee as embodied in the Terms of Reference of theStrategy and Finance Committee (see Appendix 5) (Minute 04/83)ii. to the Appointments Committee as embodied in the Terms of Reference of theAppointments Committee (see Appendix 6) (Minute 04/83)iii. to the Support Services Policy Committee as embodied in the Terms of Reference ofthe Support Services Policy Committee (see Appendix 7) (Minute 04/83)iv. other delegations confirmed by the Councila) The appointment of Senior Officers (other than the Vice-Chancellor) to therelevant Committee of Selection (Minute 99/36)b) Appointment of External Examiners to Faculty Boards (Minute 99/36)c) Establishment and abolition of posts to the Senior Management Board (at thattime the Committee of Deans) (Minute 99/36)d) Acquisitions outside the current acquisitions policy of the Museum of EnglishRural Life to the Advisory Committee for the Museum of English Rural Life (atthat time the Rural History Centre) (Minute 99/57).3. Annually authorised delegationIt is the Council's practice to make the following delegation to Officers before eachSummer Vacation:-‘That authority be given to the President, either Vice-President and the Vice-Chancellor toact collectively on behalf of the Council during the Long Vacation and that a report onthe exercise of that authority be submitted to the next meeting.’October 2011K N HodgsonUniversity Secretary©University of Reading 2011 Tuesday 15 November 2011 Page 1
Appendix 4Biographical details of members of the Counciland chief officersMr Tom BARTLAM graduated with an honours degree in law fromCambridge University and qualified as a Chartered Accountant. Hehas spent his working career in the financial services sector, initiallyin investment banking. In 1989 he co-founded and subsequently ranIntermediate Capital Group plc, which grew to become the leadingMezzanine Finance business in Europe. He now sits on the boardsof a number of publicly quoted companies in the financial servicessector as non-executive chairman or director. He is a Trustee andChairman of the finance committee of Leonard Cheshire Disability,a leading global charity for the disabled. He is also on the Thamesand Solent Regional Committee of the National Trust. His interestsinclude farming and gardening.Sir David BELL has been appointed as Vice-Chancellor with effectfrom 1 January 2012. Sir David was born in Glasgow in March1959. He studied history and philosophy at Glasgow University andobtained his PGCE from Jordanhill College of Education. He also hasa Master of Education degree in management and administrationfrom Glasgow University. He began his career in teaching and helda number of posts before becoming Assistant Director of Educationat Newcastle City Council in 1990 and subsequently Director. Duringthis time he spent a year as a Harkness Fellow at Georgia StateUniversity, Atlanta, studying education and local government reformacross the United States of America.Sir David trained as an Ofsted team inspector in 1993 and became aRegistered Inspector the following year. He became Chief Executiveof Bedfordshire County Council in 2000. Sir David took up the post asHer Majesty’s Chief Inspector of Schools in England in 2002 and wasappointed Permanent Secretary to the Department for Education andSkills, now Department for Education, in 2006. He was knighted inthe Queen’s Birthday Honours 2011.Sir David is married with two adult daughters. His hobbies includereading, particularly anything to do with American politics, keepingfit and, occasionally, Scottish country dancing. He was also a seasonticket holder at Rushden and Diamonds Football Club before itwent into liquidation in 2011. He hopes therefore that his arrival inReading might provide him with a new footballing passion.
Professor John BOARD is Dean of the Henley Business School andProfessor of Finance. His research and consulting activities havefocussed on the operation of financial markets and their regulationand he has acted as advisor or consultant to many markets, agenciesand regulatory authorities in the UK and abroad. Before taking theposition of Dean, John was Director of the ICMA Centre. He has taughtfinance and related topics in some 20 countries. Before joining theUniversity, John spent a number of years on the faculty of the LSE.Professor Gavin BROOKS becomes Pro-Vice-Chancellor with particularoversight of Teaching and Learning on 1 January 2012. He graduatedwith a first class honours degree in Pharmacy (1984) and obtained aPhD in the areas of organic chemistry and pharmacology (1988) fromThe School of Pharmacy, University of London. He registered as aPharmacist with the Royal Pharmaceutical Society of Great Britainin 1985 and has remained an active member since that date. In 1988,he joined the Imperial Cancer Research Fund Laboratories in Londonas a post-doctoral research fellow before being recruited (1992) as aGroup Leader to the 5*-rated Department of Cardiovascular Research,The Rayne Institute, St. Thomas’ Hospital, London where he beganfocusing on the mechanisms that control physiological and pathophysiologicalcardiovascular cell growth. In 1997, he joined ProlifixLtd. as head of their cardiovascular programme and in 1999 returnedto academia as a Lecturer at the University of Reading, becomingProfessor of Cardiovascular Research in 2002. In 2001, he was electeda Fellow of the American Heart Association and in January 2004, hebecame founding Head of the new Reading School of Pharmacy. In2008, he was a founding member of the highly successful Institutefor Cardiovascular and Metabolic Research (ICMR) that is based atthe University and from August 2008 – July 2010 he served as Head ofthe School of Biological Sciences. He was elected Dean of Science inAugust 2010. Amongst a number of academic external appointments,he has served as Chairman of the International PharmaceuticalFederation (FIP) Special Interest Group on Pharmaceutical Biotechnologyand currently is Chairman of the South East UniversitiesConsortium for Biopharma Skills.Mr Richard BULLER was formerly Head of Intellectual PropertyServices for Shell International and has been involved in mostaspects of intellectual property such as patents, trade marks,copyright and technology transfer. He was educated at BanburyGrammar School and following a period of teaching in Sierra Leone,obtained a degree in Chemistry and Physiology at the LanchesterCollege of Technology in Coventry. After working for a brief periodat the UK Patent Office he joined Shell in 1969 and qualified as aUK and European Patent Attorney. He is particularly interested insustainable development, corporate governance and the role of intellectualproperty systems in the economic development of developingcountries.
Professor Tony DOWNES became Acting Vice-Chancellor on 1 August2011. He is Professor of Law, specialising in commercial law, and hasworked at the University since 1990. Professor Downes has, for the pastfour years, held the post of Deputy Vice-Chancellor, with responsibilityfor planning and operational issues throughout the University. Thishas included the successful merger negotiations to create the HenleyBusiness School which is now one of Europe’s leading full-servicebusiness schools and the exploration of opportunities for the Universityto establish an overseas campus. Professor Downes was educatedat the Universities of Oxford and Aix-en-Provence. He began his careeras a Lecturer in Law at the University of Durham and as VisitingProfessor at the University of Iowa before joining the University ofReading as Reader in European Community Law in 1990. Subsequentlyhe has held a number of senior posts within the University, includingDean of Faculty and Pro-Vice-Chancellor.Mr Bob DWYER Vice-President of the Council from August 2011, wasGroup HR Director for a number of UK public companies prior to hisretirement from a full-time career in 2005. He holds an economicsdegree from the University of London and is a Chartered Fellowof the Chartered Institute of Personnel and Development and aqualified business coach. He has travelled extensively during hiscareer and has worked in most European countries as well as theUSA, the Far East and Australasia. He has worked with a numberof internationally based business schools and has handled boardlevel appointments and sat on plc Remuneration and NominationsCommittees. He was also Chairman and Trustee of various CompanyPensions Trustee Boards. Since 2006 he has been a Trustee ofa number of charities. He is a keen rugby follower, golfer, recordcollector and amateur historian.Mrs Breanna EDWARDS graduated from the University of Reading in2005 with a Masters Degree in History. Prior to her studies at Readingshe completed her Bachelors degree from the University of Texas.She began her employment at the University of Reading in the Internationaloffice and is now a member of the Henley Business SchoolFaculty Office working to support Teaching and Learning activities.Before her employment at Reading she worked for the State of Texasprocessing applications for assistance from Hurricane Rita victimsand was employed in the real estate industry. Breanna is marriedwith one young daughter.
Professor Richard ELLIS is Dean of the Faculty of Life Sciences, havingpreviously been Head of the Department of Agriculture and Headof the School of Agriculture, Policy and Development. He read Agricultureat UCNW Wales and completed his PhD on plant geneticresources conservation (now known as biodiversity conservation)by long-term seed storage at Reading. After an initial period as aResearch Fellow in Biology at Stirling, he joined the staff at Readingin 1977 as Research Fellow and progressed to Senior Research Fellowto Lecturer (under the national “New Blood” scheme) to Reader toProfessor of Crop Production. He has 332 research outputs, two thirdsof which are international refereed journal papers. His researchcovers reproductive plant biology and the effect of environment onseeds, plants and crops. His seed research has been widely appliedin over a thousand gene banks worldwide, both for crops and wildspecies. Research on flowering has been concerned with global cropadaptation across tropical to temperate regions. The related climatechange impacts research began in the 1980s. It highlighted thevulnerability of crop production to extreme climate events duringseed set and seed and grain development.He is married with two children and is a Fellow of the Society ofBiology.Dr Peter ERSKINE’s current business roles are as Chairman ofLadbrokes PLC, a Non Executive Director of Telefonica, and somelimited involvement with Apax Private Equity. Having beenMarketeer with such as Colgate, Palmolive and Mars, he then becameCEO of O2, the European Mobile Company when it demerged fromBT in 2001, retiring as Chief Executive in January 2008, leading itsintegration into Telefonica when they bought the company in 2006.Peter lives in Henley, has four children, and enjoys his role on theStrategy Advisory Board of Henley Business School, where he becameChairman of that Board in Autumn 2010.Mr Robin EVANS graduated from the University of Reading in 1975with a degree in Estate Management. He spent the early part ofhis career as a Land Agent for the National Trust and then becameChief Executive of the Landmark Trust for 8 years. In 1995 he wasappointed Palaces Director at Historic Royal Palaces who manage the5 unoccupied Royal Palaces in London including The Tower of Londonand Hampton Court. In 1999 he became Commercial Director ofBritish Waterways and in 2002 was appointed Chief Executive. BritishWaterways (newly rebranded as the Canal & River Trust) manages2,200 miles of navigable canals and rivers in England, Scotland andWales. Robin Evans is a Fellow of the Royal Institution of CharteredSurveyors and a Companion of the Chartered Institute of Management.
Mr Dudley FISHBURN has recently retired as a director of HSBCBank. He has been a member of Harvard University’s Board ofOverseers and is Chairman of Cambridge University Library’s VisitingCommittee. He was Chairman of the Open University’s Foundationand Treasurer of the National Trust. Dudley has been ExecutiveEditor of The Economist and Member of Parliament for Kensington.Mr Christopher FISHER became President of the Council in 2009having previously served as a member of Council for a number ofyears. Since 2006 he has been a partner in Penfida Partners, a firmproviding independent financial advice to pension fund trustees. Healso serves as non-executive member of the UK Board of the Bankof Ireland. He has spent most of his career in investment banking,principally at Lazard, where he was a managing director until 2003,and subsequently at KPMG, where he was vice chairman, corporatefinance until 2006.He is a graduate of the Kennedy School of Government, HarvardUniversity, which he attended as a Kennedy Scholar, and of ReadingUniversity, where he served as President of the Students’ Union.Professor Stephen HAWKER CB, MA, FIET, FICPEM was educated atWorksop College and Pembroke College, Oxford, where he studiedEngineering Science and Economics. After postgraduate training asa teacher he taught mathematics and economics at Henley GrammarSchool during its transition to a Sixth Form College. In 1978 heentered government service and worked in a number of governmentdepartments including the Cabinet Office, Northern Ireland Officeand Ministry of Defence. He retired from the Civil Service in 2006.He now runs a small consultancy business providing strategic adviceand insight to government and industry in the UK and overseas ondefence and security policy, counter-terrorism and resilience issues.He is a member of the Advisory Board of BAE Systems Detica, a nonexecutiveDirector of FCO Services and a member of the FCO Auditand Risk Committee. As a Visiting Professor at Cranfield Universityhe works closely with the Defence Academy at Shrivenham. He isa member of the Lord Chancellor’s Advisory Council on NationalRecords and Archives. He is a Fellow of the Institute of Engineeringand Technology and of the Institute of Civil Protection andEmergency Management, and was appointed CB in 2005. Stephen’swife is a teacher and he has two children.
Mr Karl HOBLEY, is President of the Students’ Union. Having graduatedin July 2011 with a BA in Politics and International Relations, Karlhas spent four years at Reading, including a term spent abroad atthe University of Ottawa, Canada. While his academic interest nowlies firmly in the field of politics Karl attended Roehampton Universityfor one and half years in 2004-2006 reading Drama, Theatreand Performance, eventually leaving to pursue the study of politicselsewhere. He currently sits on the National Union of Studentstrustee board having previously served as an elected student trusteeof RUSU in his second year at Reading. While at university he hasalso served as Vice-President of the mature students’ representationgroup, secretary of Sherfield Hall JCR and as treasurer of the LiberalDemocrat society in addition to taking part in numerous dramasociety productions. He intends to maintain the good relationshipbetween the University and the Union and continue the good workof previous RUSU officers by engaging, empowering and representingthe students of the University of Reading.Professor Alison HODGE, studied for both her BSc and PhD in physicsat the University of Reading. She has recently been appointedAssociate Dean in the School of Engineering and Applied Science atAston University in Birmingham. Prior to joining Aston, Alison wasQinetiQ’s University Partnerships Director. Her professional careerhas encompassed pioneering research, management of appliedresearch and strategic direction of specific programmes. Her initialemployment was in the UK Scientific Civil Service; later as a DepartmentHead at QinetiQ, she transitioned teams in the former Ministryof Defence research laboratories into Agency status then profit drivencommercial company. She is recognized nationally as a leadingexponent of knowledge exploitation between businesses and universities.She is an enthusiastic ambassador for women in science andengineering, and the need for these STEM skills.Alison is highly networked; she has been an industry adviser tomany university groups and is a Visiting Fellow in the Faculty ofEngineering at Bristol University. She has been a member of Councilof the Institute of Physics and is currently a member of the Councilof the Institution of Engineering and Technology. She was InterimChair of the EPSRC User Panel and Chaired the CBI Inter-CompanyAcademic Relations Group. Alison has been appointed as a memberof the HEFCE Research Excellence Framework 2014 Sub-panel 13:Electrical and Electronic Engineering, Metallurgy and Materials. HerMBE, awarded in the Queen’s Birthday Honours 2002, is for Servicesto the Institute of Physics.
Mr Keith HODGSON, a graduate in English of the University ofLeicester, began his administrative career at University CollegeLondon following a period of postgraduate study there. He joinedthe University of Reading in 1978 and, having performed a varietyof roles within the then Registrar’s Division including two separateperiods as Sub-Dean of a Faculty, was appointed Academic Secretaryin 1998, Director of Academic Services in 2003, and UniversitySecretary and Director of Governance in 2008. In this capacity he isSecretary to the Council, only the eighth holder of that office since1892. Keith lives in Finchampstead and is married with two grown-upchildren. A member of MCC and of many other cricketing clubs andsocieties, his abiding passion is for cricket and he has an extensivelibrary related to the game.Mr Shaun HORAN is Director of External Affairs, which coversCommunications and Events, Marketing, Student Recruitment, Developmentand Alumni Relations and Design and Print. He read law atthe University of Southampton and qualified as a Barrister at Gray’sInn. His career began in the city working for Simmons & Simmonsand then as a Criminal Barrister. He left the law to go into thevoluntary sector, and worked for a decade in International Developmentin the areas of fundraising, marketing and public relations. In2004 he joined Reading to establish a central Development functionwhich has raised nearly £27m since it began, and which is nowpart of the External Affairs Directorate. He is a certified memberof the Institute of Fundraising (MinstF(Dip)) and the Ross Group ofDevelopment Directors, and speaks regularly across the sector onadvancement issues, including being Conference Chair for CASEEurope. He is a trustee for CASE Europe, and for the Phyllis TuckwellHospice. He has three small children and enjoys all sports, althoughthe excuse of the former tends to cancel out time for the latter.Professor George MARSTON was educated at Newcastle RoyalGrammar School and the University of Oxford. He graduated with aBA in Chemistry in 1984 and a DPhil in 1987. He spent two years asa National Academy of Science Resident Research Associate at NASAGoddard Space Flight Centre before returning to Oxford where hecarried out further post-doctoral research and spent periods as aTeaching Lecturer at Christ Church and St Hilda’s College. In 1994 hetook up a lectureship in Chemistry and Earth Observation Science atthe University of Leicester, moving to Reading as a lecturer in 1995,where he was subsequently promoted to Senior Lecturer in 2002and Professor in 2009. In 2011 he was elected Dean of the Faculty ofScience.His main field of research is in atmospheric chemistry, focussingon the use of laboratory and theoretical methods to understand keyprocesses in Earth’s atmosphere. He sits on the Natural EnvironmentResearch Council’s Peer Review College, the Advisory Board ofthe journal Chemical Society Reviews and is a member of the RoyalSociety of Chemistry’s Gas Kinetics Discussion Group. He is marriedwith two teenage children.
Dr Richard MESSER read Philosophy and Theology at Oriel College,Oxford, before completing a PhD in Philosophy of Religion atBirmingham University. He joined the University of Reading in1991 in the Urban and Regional Studies Faculty Office, followedby a five year period as the University’s Examinations Officer.He became Director of Planning Support in 1998, Director ofAcademic Services in 2008 and Director of Student and AcademicServices in 2011. He is heavily involved in the 1994 Group, and is amember of the 1994 Group Registrars Forum. He is married withtwo children.Professor Steven MITHEN is Pro-Vice Chancellor with particularoversight of International and External Engagement. Having originallystudied Fine Art at the Slade School, he took a BA in Prehistory& Archaeology at Sheffield University, an MSc in Biological Computationfrom York University and a PhD in Archaeology at CambridgeUniversity, where he taught prior to moving to a Lectureship at theUniversity of Reading in 1992. Prior to his appointment as Pro-ViceChancellor, Steven served as Head of the School of Human & EnvironmentalSciences (2003-2008) and Dean of the Faculty of Science(2008-2010). Steven’s research interests concern early prehistoriccommunities and the evolution of human intelligence, language andmusic, with long-term field projects in Western Scotland (Mesolithic)and Southern Jordan (early Neolithic). His recent books include Afterthe Ice (2003), The Singing Neanderthals (2005), The Early Prehistory of WadiFaynan (2007), To The Islands… (2010), and Water, Life & Civilisation (2011).He was elected as a Fellow of the British Academy in 2003.Dr Irene MUELLER-HARVEY is a Principal Research Fellow in theSchool of Agriculture, Policy and Development. She studiedchemistry at the universities of Freiburg, Southampton and Hamburgand soil chemistry at Reading. Between 1983 and 1993 she worked atBBSRC and NERC Institutes. She also spent some time as a ResearchFellow at the International Institute of Tropical Agriculture, Ibadan,Nigeria, and as a consultant to the International Livestock Centre forAfrica in Addis Ababa, Ethiopia between 1979 and 1987. She came toReading because of the University’s reputation for agriculture andrelated subjects and its close links with overseas institutions. Herresearch covers the role of natural plant products, especially tannins,in nutrition and health. She is currently the co-ordinator of a largeEU project (‘LegumePlus’).
Mr Howard PALMER graduated from Oxford University in 1976 witha BA in Law and was called to the Bar in 1977. He taught law atKing’s College, London from 1977 to 1978 and then joined Barristers’Chambers at 2 Temple Gardens, where he has remained ever since. Hewas appointed a Q.C. in 1999 and a Recorder of the Crown Court in2005.His practice is in civil litigation, including cases on personal injury,medical negligence, professional negligence, construction disputes andinsurance policy interpretation. He has served on the Bar Council’sProfessional Conduct and Complaints Committee, as well as runningthe 2 Temple Gardens pupillage committee for many years.Through historical family links he has a strong affinity with theUniversity. His interests include cricket, golf and preservation of thecountryside.Dr Paul PRESTON graduated with a PhD in Physiology from UniversityCollege Cardiff prior to undertaking a post-doctoral fellowship withHoffman-La Roche in Basle, Switzerland. He has extensive experiencein the healthcare sector that includes pharmaceutical research, drugdevelopment in an international environment, sales and marketing ofdrugs and medical consumable products and hospital management.He completed a successful career lasting almost twenty years at BMIHealthcare, the country’s largest independent hospital group, wherehe became Managing Director. During this time he helped to sourcetwo university based research programmes, working with leadingacademics to form successful independent commercial companies.He went on to work with 3i, a leading venture capital firm, where hecontributed sector knowledge in support of the investment teams. Hehas subsequently worked with a number of private equity companiesin the buy-out and management of healthcare businesses. He iscurrently Chairman of a company providing specialist neurorehabilitationfor individuals with acquired brain injury. He is a Fellow of TheRoyal Society of Medicine and a Fellow of the Institute of Directors.Dr Allyson REED Director of Strategy and Communications at the TechnologyStrategy Board, is a commercial business leader with a scientificacademic background. She was previously Director of Innovation Partnershipsat QinetiQ plc and prior to that Commercial Director of a nationalresearch laboratory where she headed technology transfer, developinga substantial commercial collaboration programme including licensingand setting up CLIK, the technology transfer company, the RainbowSeed Fund, a portfolio of spin-outs, and a joint venture science park andincubator with an RDA. Following early research as Rosalind FranklinFellow at Cambridge University, Allyson has held senior managementroles in a number of international healthcare, engineering and communicationsbusinesses. Until recently she was CEO of 3CResearch, a companycommercialising research in new digital media. She has extensive experienceof public and private sector innovation, of the business and peopleskills needed to accelerate sustainable new business and of engaging largeand small organisations in enterprise.
Mr Colin ROBBINS, Director of Estates and Facilities Management, waseducated at Midsomer Norton Grammar School, near Bath and subsequentlyat Portsmouth University. He originally trained as a quantitysurveyor and is a Fellow of the Royal Institution of CharteredSurveyors. He has a wide experience of working in private practiceand in the public sector. Following a period as Head of Property inthe Estates and Facilities Division at UCL he then became a directorin an international firm of construction consultants. He joined theUniversity of Reading in February 2005.When he manages to extract himself from Estates matters he enjoyshurtling down ski slopes and attempts the odd golf course or spot ofsailing.Professor Rob ROBSON read Biology at York and completed his PhDin Microbiology at The University College of Wales, Aberystwyth.After a short period of research in industry with Glaxo, he workedfor 10 years in the AFRC Unit of Nitrogen Fixation at Sussex. Hemoved to the University of Georgia, U.S.A. spending 7 years asAssociate Professor of Biochemistry where he was a founder memberof the NSF Centre for Metallo-Enzyme Studies. He was appointedto the Chair of Microbiology at Reading in 1994 and later becameHead of Research in the School of Animal and Microbial Sciences.His research has always focussed on what we can learn about somefundamental microbiological processes which could be applicableto sustainable technologies. They include: fermentations to producesolvents and other products; how biological nitrogen fixationworks so that we can obviate the need for expensive oil-dependentchemical industrial processes; how microbes can both generate anduse hydrogen as an energy source, how a number of commerciallyimportant and chemically stable phosphorous compounds are biodegradedand used; and what can we learn and exploit from thoseremarkable microbes that thrive in extreme environments. For 5years from 2001 he served as Dean of Life Sciences and became Pro-Vice-Chancellor with particular oversight of Teaching and Learningin August 2006.Mr David SAVAGE was educated at Bristol Grammar School andUniversity College London. He is a qualified accountant and for 20years worked for the United Kingdom Atomic Energy Authority(UKAEA) holding various financial and commercial posts, initially atUKAEA’s London Headquarters, and from 1992 at their site at Harwellin Oxfordshire. He came to the University on his appointment asDirector of Finance in October 1999. He is an enthusiastic followerof most sports and a keen boater with a narrowboat moored on theKennet and Avon Canal near Newbury.
Mrs JUDITH SCOTT, Vice-President of the Council from August 2007,obtained a BSc in Mathematics from St Andrews University, and apostgraduate Diploma in Computer Science from Cambridge University.She worked in Canada in the IT sector from the mid 1960s to thelate 1980s, returning to the UK as Managing Director of the UK-basedsubsidiary of Gandalf Technologies Inc. a Canadian designer andmanufacturer of data communications equipment. She was involvedin international network standards development for data, as anindustry adviser on IT policy to the Canadian Government and an ITskills adviser to the UK Government. From 1995 to 2002 she was ChiefExecutive of the British Computer Society, involved in evolving professionalstandards of practice in IT, and education requirements for ITusers and professionals, including accreditation of post secondaryacademic qualifications leading to professional registration. Shewas appointed to the Council of the Particle Physics and AstronomyResearch Council from 2001 to 2006. She was awarded an honorarydegree from the University of Staffordshire in 2002. She has served asa Governor of Ranelagh School, and was Chairman of the ManagementCommittee of the Wokingham District Citizens Advice Bureau from2003-2009. She is also a Trustee of a number of small charities.Mr Stephen P SHERMAN is a Fellow of the Institute of CharteredAccountants in England & Wales and an alumnus of the LondonBusiness School. He joined Peat Marwick Mitchell (now KPMG) in 1978and over the course of his professional career with the firm gaineda wide range of business consulting experience across a number ofindustries. He was seconded to National Westminster Bank for twoyears to work alongside banking teams appraising companies seekingfinancial assistance and, with KPMG, worked on a number of significantprojects, most notably the development of London City Airportand a series of cost reduction and business efficiency reviews withinmajor financial institutions and utilities companies.Stephen was made an equity partner in 1990 and, in addition to hisclient work, he held a number of senior positions within the firm,including Head of Consulting for KPMG’s Media, Entertainmentand Technology Business Unit and Head of Consulting for KPMG’sFinancial Services Practice. Stephen also sat on the ManagementConsulting Executive where he was Head of Sales for the UK and wasthe Global Lead Partner responsible for co-ordinating all KPMG activitieswith the Royal Bank of Scotland Group.Stephen retired from the KPMG Partnership in 2009 and now splitshis time between London and Wiltshire. He is married with threegrown-up children and is currently completing a Humanities degreewith the Open University. He is interested in all aspects of the Arts,as well as being a keen sportsman.
Mr Alex SLATER is the current Vice President (Academic Affairs)at RUSU. Alex graduated in July 2011 with a Bachelors degree inManagement and Business Administration. Throughout his time atReading University Alex has focused on improving the student experienceboth academically and socially. Having served for one year asthe RUSU faculty rep. for the Henley Business School Alex decided tostand for office in order to further his passion for a quality studentexperience on a larger scale. Following his sabbatical year as VicePresident Alex hopes to enter the city working in finance and investmentbanking.Sir John SUNDERLAND was appointed Chairman of CadburySchweppes in May 2003 and retired in July 2008 having joinedCadbury Limited in 1968. Over the years he worked on both theconfectionery and soft drinks sides of the business, on the boardsof Cadbury Ireland, Cadbury Schweppes South Africa, as a foundingDirector of the Coca-Cola Schweppes UK joint venture in 1987 andthen as Managing Director of Trebor Bassett. In 1993 he becameManaging Director of the Confectionery Stream and a member ofthe Cadbury Schweppes Board. In September 1996 he was appointedChief Executive.He is a non-executive Director of Barclays plc, a Director of theFinancial Reporting Council, an Adviser to CVC Capital Partners,an Association Member of BUPA and Chancellor of Aston University.He is also a Fellow of the Royal Society for Arts, Manufacture& Commerce and a Fellow of the Institute of Grocery Distribution.He was President of the Chartered Management Institute 2007-08,President of the UK Food and Drink Federation 2002-04, Presidentof ISBA, the Incorporated Society of British Advertisers, 2002-05 andPresident of the Confederation of British Industry 2004-06, then CBIDeputy President 2006-08. He served as a Task Force Member onAccounting for People, as a Leadership Council member of YoungEnterprise and on the Tomorrow’s Company Inquiry into WealthCreation. He was a non-executive Director of the Rank Group plc1998-2006. He was knighted in the Queen’s Birthday Honours in June2006.Professor Hugo TUCKER (B.A., M.A., PhD Cambridge) has, since August2011, been Dean of the new Faculty of Arts, Humanities and SocialScience, and, since 1996, Professor of French Studies at the Universityof Reading. He has been Head of the Department of FrenchStudies (2003-04), of the School of Modern Languages & EuropeanStudies (2004-08) and of the School of Literature & Languages (2010-11). Before joining the University he was Research Fellow at St John’sCollege, Cambridge (1984-88), British Academy Post-doctoral Fellowat The Warburg Institute, University of London, (1988-89), and Fellowin French & Director of Studies in Modern Languages at DowningCollege, Cambridge (1989-96). He has been Visiting Fellow at theUniversity of Virginia (1992), and the Katholieke Universiteit Leuven(1996), and (since 1996) Fellow of the European Humanities ResearchCentre, University of Oxford, as well as Visiting Professor, Ecole
Pratique des Hautes Etudes – Sorbonne, Paris (2007), and LeverhulmeTrust Major Research Fellow (2008-10). He is a membre étranger ofthe équipe “Rome et ses Renaissances” of the Centre de rechercheGuillaume Budé, Paris IV-Sorbonne, and Associate Editor of HumanisticaLovaniensa (Belgium), and Compar(a)ison (Switzerland). He haspublished on vernacular and neo-Latin humanist culture, includingThe Poet’s Odyssey (Oxford, 1990) and Les Regrets (Paris, 2000) on DuBellay, Forms of the “Medieval” in the “Renaissance” (Charlottesville,2001), and Homo Viator (Geneva, 2003), as well as studies of the 16thand17th-century cento, and on the 19th-c. French poet Rimbaud(including a critical edition of his Latin compositions (Paris, 2007).Professor Christine WILLIAMS is Pro-Vice Chancellor with particularoversight of Research and Innovation. Christine Williams wasappointed the first Hugh Sinclair Professor of Nutrition in 1995. Sheserved as the Head of the School of Food Biosciences between 2003and 2006 and in August 2006 was elected to the Dean of Life Sciences.She was awarded her PhD from Guy’s Hospital Medical School in1979 and held a Readership in Human Nutrition at the University ofSurrey before taking up her chair at Reading in 1995. Her research isprimarily concerned with understanding the impact of dietary fatson human health, particularly in relation to cardiovascular diseaseand insulin resistance. She is frequently involved in providing adviceto government and industry on matters relating to dietary policyand actively engages in dissemination of nutritional science to thepublic. In 1999 she was awarded the Royal Society of Medicine GoldMedal in Nutrition for her contribution to scholarship and educationin nutrition. Between 1998-2001 she was the President of the UKNutrition Society, she chaired the BBSRC Agri-Food Committee,2003-2006 and is a Governor and Vice-President of Council of theBritish Nutrition Foundation. In 2010 she was appointed as a memberof Sir John Beddington’s high level committee on Food Security.Ms Sue WOODMAN, a graduate in French of the University of Reading,is a solicitor and General Counsel at Barclays Private Equity. Prior tojoining Barclays, Sue was Partnership Counsel at Alchemy PartnersLLP, a mid market private equity fund having been a partner inprivate practice before joining Alchemy. She was Chairman ofthe British Private Equity and Venture Capital Association’s Legaland Technical Committee for five years until last summer and is aregular speaker at legal conferences. She is a governor of La RetraiteSchool in south west London.
Appendix 5Strategy and Finance Committee –Terms of reference
Charan Aujla LocalSection nameAppendix 5Strategy and Finance CommitteeTerms of reference1. The Strategy and Finance Committee shall consist of the following voting members:Ex OfficioThe President of the CouncilThe Vice-Presidents of the CouncilThe Vice-ChancellorThe Deputy Vice-ChancellorThe Pro-Vice-ChancellorsElected Members Four members of the Council, not being employees or registeredstudents of the University, elected by the Council, each to serve forthree years. These members shall be eligible to serve for twoconsecutive terms but not more.2. The University Secretary shall be Secretary of the Committee; the Deans of the Facultiesand the Heads of Directorate shall have the right of attendance.3. The Committee shall report to the Council and, where appropriate, to the Senate.4. It shall normally meet four times a year, at least once in each term.5. The quorum for meetings of the Strategy and Finance Committee (which has twelvemembers of whom seven are lay) shall be six members of whom four must be lay.6. The functions of the Strategy and Finance Committee shall be as follows:-i. FinanceIt shall be responsible for:a) preparing forward financial plans supporting the University CorporatePlan for approval by the Council;b) recommending to the Council and implementing general financial Policy,including the Treasury policy;c) controlling the overall distribution of financial and other resources;d) recommending annual budgets to the Council;e) having oversight of annual income and expenditure, self-financing units andcash flow;f) having oversight of, and authorising significant financial dealings with outsidebodies, including any fundraising appeals;g) receiving the Annual Financial Statements for the University, subsidiarycompanies and Trusts and presenting them to the Council for approval;h) taking such actions as are required by the Council or authorised by the Councilin connection with the Financial Statements whether on the recommendation ofthe Audit Committee or otherwise;©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the Council Appendix 5i) financial considerations relating to staff employment (including pensionarrangements and promotions) except where the Council has explicitly directedotherwise;j) subsidiary companies and other shareholdings either by the University or asubsidiary company;k) Trusts, save where the Council has appointed another Committee to haveresponsibility;l) Authorising and monitoring the acquisition and disposal of land and property;m) Recommending to Council policy on loan capital or other debt and authorisingcommitments within any limits specified by Council.ii. EstatesIt shall be responsible for:a) recommending to the Council and implementing an Estates Strategy;b) within the framework of the Estates Strategy, authorising and monitoringbuilding programmes;c) bringing forward to the Senate and Council such other proposals as it maydeem fit.iii. Academic and Institutional PlanIt shall be responsible for recommending to the Council each year the University'sStrategic Plan following appropriate consultation.iv. ServicesIt shall have responsibility for:a) the Halls Corporation;b) Safety and occupational health within the Universityv. RiskIt shall have responsibility for the overall risk profile of the University and formonitoring such specific risks as shall be assigned to it within the University’s RiskRegister.vi. Other MattersIt shall be responsible for such other matters as are referred to it by the Council.Unless instructed otherwise by the Council the Committee may delegate businessand, where appropriate, power of decision to its Sub-Committees and to the SeniorManagement Board.The Committee shall at all times operate within the guidelines of policy agreed bythe Council.©University of Reading 2011 Monday, 14 November 2011 Page 2
Appendix 6Appointments Committee –Terms of reference
Charan Aujla LocalSection nameAppendix 6Appointments CommitteeTerms of reference1. The Appointments Committee shall consist of the following voting members:Ex OfficioThe President of the CouncilThe Vice-ChancellorElected Members One Pro-Vice-Chancellor appointed by the CouncilOne Dean appointed by the CouncilFive members of the Council, not being employees or registeredstudents of the University, appointed by the Council, each to serve forthree years. These members shall be eligible to serve for twoconsecutive terms but not more.2. The University Secretary shall be Secretary of the Committee.3. The Committee shall report to the Council and, where appropriate, to the Senate and tothe Strategy and Finance Committee.4. It shall normally meet at least once in each term.5. The quorum for meetings of the Appointments Committee (which has nine members ofwhom six are lay) shall be five members of whom three must be lay.6. The functions of the Appointments Committee shall be as follows:-i. Non-financial aspects of staffing mattersThe Committee shall discharge the Council’s responsibilities in respect ofa) Committees of Selectionb) The Joint Standing Committee on Personal Titles to which it shall appoint twomembers from among its lay membershipc) Panels appointed to hear Appeals against decisions of the Faculty PromotionsGroups of the Personal Titles Committee or of the Personal Titles Committeed) The Joint University/Trades’ Union Committees to each of which it shall appointone member from among its lay membership.ii. Honorary DegreesThe Committee shall discharge the Council’s responsibilities in respect of the JointStanding Committee on Honorary Degrees and shall appoint four members fromamong its lay membership.iii. Nominations CommitteeThe Committee shall take to itself, as a discrete element within its meetings, thefunctions of the Nominations Committee.iv. RiskThe Committee shall monitor such risks as may be assigned to it within theUniversity’s Risk Register.©University of Reading 2011 Monday 14 November 2011 Page 1
Appendix 7Support Services Policy Committee –Terms of reference
Charan Aujla LocalSection nameAppendix 7Support Services Policy CommitteeTerms of reference1. The Support Services Policy Committee shall consist of the following voting members:Ex Officio A Vice-President of the CouncilThe President of the Students’ Union (or nominated alternate)Elected Members One Pro-Vice-Chancellor appointed by the CouncilOne Dean appointed by the CouncilFour members of the Council, not being employees or registeredstudents of the University, appointed by the Council, each to serve forthree years. These members shall be eligible to serve for twoconsecutive terms but not more.2. The Director of Student Learning and Teaching Services shall be Secretary of theCommittee.3. The quorum for meetings of the Support Services Policy Committee (which has eightmembers of whom five are lay) shall be four members of whom three must be lay.4. The Committee shall report to the Council and, where appropriate, to the Senate and tothe Strategy and Finance Committee.5. It shall normally meet at least once in each term.6. On behalf of the Council, the Support Services Policy Committee shall have oversight ofnon-academic services policy and have advisory oversight of student services generally.i. ServicesThe Committee shall discharge the Council’s responsibilities by:Advising the University on strategic developments in respect of those aspects ofprovision which contribute to the non-academic experience of a studentMonitoring the implementation of the strategy which the University has adoptedfor its provision of non-academic services for students in order to ensure thedelivery of the University’s Corporate PlanProviding advice and information on the possible impact of proposed changes inUniversity policy to other Council committees. The Strategy and FinanceCommittee should wherever possible seek the views of the Support Services PolicyCommittee before making decisions which could be expected to have asubstantial impact on the quality of the non-academic life of student at theUniversityIn discharging its functions, the Committee will have oversight of the activities ofthe support services which contribute to the non-academic experience of a student.This will include:a) Cultural activities and facilities including, but not limited to, Music and theMuseums©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the council Appendix 7ii.b) Careers and employmentc) Health and wellbeing of studentsd) Student accommodation and cateringe) Sporting activities and facilitiesf) Student organisations including, but not limited to, Reading UniversityStudents’ Uniong) Academic Support activities including, but not limited to, the Library, IT Servicesand personal tutoringh) Such other student-centred non-academic activities as the Council may fromtime to time decideAppointments to other committeesa) The Committee shall appoint a lay member of the Council or Court to theStanding Committee on the Artsb) The Committee shall appoint two members to the University Student/StaffForum from among its lay membership (the President, alternate Vice-President,being a member ex officio). The Forum is currently in abeyance.Complaints, Conduct and DisciplineThe Committee shall discharge the Council’s responsibility in respect of thefollowing:a) The Complaints Committee to which it shall appoint a lay member of theCouncil as Chairb) The Standing Disciplinary Committee to which it shall appoint one member andone alternatec) The standing Disciplinary Appeals Committee to which it shall appoint two laymembers, at least one to be a member of the Council, and a panel of four layCouncil members as substitutes.©University of Reading 2011 Monday, 14 November 2011 Page 2
Appendix 8The Senate – Statute XVII, Powers of the Senate
Charan Aujla LocalSection nameAppendix 8Statute XVII Powers of the SenateSubject to the Statutes and Ordinances the Senate shall have the following powers:1. To direct and generally to regulate subject to the control of the Council the instructionand education within the University and the Examinations held by the University.2. To appoint Internal Examiners after report from the Boards of the Faculties or theCommittees for the Schools of the University concerned.3. To recommend External Examiners for appointment by the Council after report from theBoards of the Faculties of the University concerned.* They shall be elected in such a manner under such conditions and according to suchRegulations as shall be prescribed and made from time to time by the Council afterreceiving the recommendations of the Senate thereon.4. To report to the Council after report from the Boards of the Faculties of the Universityconcerned on all Ordinances and Regulations relating to courses of study or to degreesdiplomas or other academic distinctions or honours.5. To report to the Council on Statutes or Ordinances or proposed changes of Statutes orOrdinances referred to them by the Council.6. To report to the Council on any academic matter.7. To report on any matter referred to them by the Council.8. To discuss any matter whatsoever relating to the University.9. To make recommendations to the Council in accordance with a procedure prescribed byOrdinance as to the election of Professors and Readers of the University.10. To make recommendations to the Council as to the appointment of members of theAcademic Staff other than Professors and Readers and as to the reappointment ofmembers of the Academic Staff other than Professors and Readers.11. To formulate modify or revise schemes for the organisation of Faculties and to assign tosuch Faculties their respective subjects and to formulate modify or revise schemes for theorganisation of Schools and also to report to the Council as to the expediency ofestablishing at any time Faculties or Schools of the University or of abolishing orsubdividing any such Faculties or Schools.12. To fix subject to any conditions made by the founders which are accepted by theCouncil and after report from the Faculty or School of the University concerned the timesmode and conditions of competition for Fellowships Scholarships Exhibitions and Prizesand to examine for and award the same or to delegate to the Faculty or School concernedpower to examine for and award the same.13. To regulate subject to the Ordinances the admission of persons to courses of study inthe University.14. To make Regulations subject to the approval of the Council for the discipline of thestudents of the University.15. To promote research within the University and to require reports from time to time onsuch research.©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the CouncilCharan Aujla Local Appendix 816. To suspend or remove Examiners for negligence or misconduct during their term ofoffice and in the case of the death illness or resignation of an Examiner or in the case ofhis suspension or removal to appoint a substitute who shall have authority to act duringthe Examination then in progress or next ensuing. The Senate may make a Regulationdelegating all or any of such powers of suspension removal and appointment of asubstitute to the Vice-Chancellor.17. To propose to the Council the names of recipients of honorary degrees and to approveor disapprove the names of persons proposed by the Council as recipients of such degrees.No person shall be admitted by the University to an honorary degree whose name has notbeen approved for that purpose both by the Council and by the Senate.18. To do such other acts and things as the Council shall authorise.©University of Reading 2011 Monday, 14 November 2011 Page 2
Appendix 9Senior Management Board – Terms of reference
Charan Aujla LocalSection nameAppendix 9Senior Management BoardMembershipEx officioThe Vice-ChancellorThe Deputy Vice-ChancellorThe Pro-Vice-ChancellorsThe DeansThe Heads of DirectorateTerms of referenceSubject to the Statutes and Ordinances and subject to such direction as it may from timeto time receive from the Council or the Strategy and Finance Committee, the SeniorManagement Board shall be responsible for:1. The consideration of, and the framing of recommendation on, such policy matters as itmay itself determine or as may be referred to it by the Council, Senate or Strategy andFinance Committee;2. The consideration and framing of recommendations on all matters relating to academicand institutional planning;3. Through the Committee on Strategy for Student Recruitment and Academic Provisionwhich shall report to it, the determination of student numbers and their distribution;4. The oversight of research, teaching and learning, and enterprise in the University;5. The receipt of, and the co-ordination of responses to, all communication from the HEFCEand similar bodies other than those exclusively relevant to the Strategy and FinanceCommittee or other body or to a specific office or officers;6. The confirmation of probationary appointments for Academic Staff and for Research andAnalogous Staff;7. The award of additional and discretionary increments and lump sum payments;8. The recommendation to the Council through the Senate of appointments to VisitingProfessorships and the conferment of such other visiting and courtesy titles as do notrequire Council or Senate approval.9. The monitoring of such risks as may be assigned to it within the University’s RiskRegister.The Board will report to the Senate and to the Strategy and Finance Committee asappropriate.©University of Reading 2011 Monday 14 November 2011 Page 1
Appendix 10Committee reporting structure
Council CourtSenateStrategyand FinanceCommitteeSeniorManagementBoardRemunerationCommitteeSupportServices PolicyCommitteeAuditCommitteeAppointmentsCommitteeUniversity Board for Researchand InnovationUniversity Board for Teachingand LearningFaculty Management BoardsDevelopment BoardInformation FrameworkStrategy for StudentRecruitment and AcademicProvision (STRAP)Catering and HospitalityEmployees Pension Fund Boardof TrusteesFacilities ManagementHealth and SafetyInvestmentsUniversity of Reading Scienceand Technology Centre LtdProject CommitteesResidences ManagementArtsCareers and Employability BoardCatering and HospitalityComplaintsMuseum of English Rural LifeResidences ManagementSports ManagementStanding DisciplinaryStanding Disciplinary AppealsAppeals CommitteesJoint Council/SenateCommittees•Honorary Degrees•Personal TitlesCommittees of SelectionJoint University/Trades UnionCommitteesUniversity Farms
Appendix 11Financial Regulations
FINANCIAL REGULATIONSCONTENTSAGeneral Provisions1. Background2. Status of Financial RegulationsBCorporate Governance3. The Court4. Council5. Senate6. Committee Structure6.1. Strategy and Finance Committee6.2. Senior Management Board6.3. Audit Committee6.4. Remuneration Committee6.5. Other Committees7. University Members and Officers with Financial Responsibility7.1. Treasurer7.2. Vice-Chancellor7.3. Director of Finance and Corporate Services7.4. Head of Internal Audit Services7.5. Director of Estates and Facilities Management7.6. Budget Holders7.7. All Members of Staff8. Risk Management9. Code of Conduct9.1 Commitment and Conduct9.2 Disclosure of Interests9.3 Signatory to a University Contract and Disclosure of Interests9.4 Receiving Gifts or HospitalityCFinancial Management and Control10. Financial Planning and Budgetary Control11. Accounting Arrangements11.1. Financial Year End11.2. Basis of Accounting11.3. Format of Financial statements11.4. Provision of Financial Statements and financial management information11.5. Accounting Systems and Records11.6. Retention of Accounting Records
11.7. Public Access11.8. Taxation12. Audit Requirements12.1 General12.2 External Audit12.3 Internal Audit12.4 Value for Money12.5 Other Auditors13. Treasury Management13.1. Treasury Management Policy13.2. Banking Arrangements13.3. Borrowing13.4. Investments14. Income14.1. General14.2. Receipts of Cash, Cheques and Other Negotiable Instruments14.3. Receipts by Credit or Debit Card14.4. Sales invoicing and the collection of debts14.5. Student Fees14.6. Write offs14.7. Credit Notes15. Research Grants and Contracts15.1. Acceptance of Research Grants and Contracts15.2. Grant and Contract Conditions16. Other Income Generating Activity16.1. Short Courses and Services Rendered16.2. New Income generating or trading activity16.3. Private Consultancies and Other Private Work17. Intellectual Property Rights and Patents17.1. General17.2. Patents17.3. Intellectual Property Rights17.4. Commercial exploitation of intellectual property17.5. Disposals of intellectual property18. Expenditure and Purchasing18.1. General18.2. Scheme of Delegation/Financial Authorities18.3. Purchasing18.4. Capital Expenditure18.5. Purchasing Cards18.6. Payment of Invoices18.7. Staff Reimbursement18.8. Advances18.9. Giving Hospitality19. Pay Expenditure
19.1. Remuneration Policy19.2. Appointment of Staff19.3. Superannuation Schemes20. Assets20.1. Land and Buildings20.2. Fixed Asset Register20.3. Inventories20.4. Stocks and Stores20.5. Safeguarding Assets20.6. Personal Use20.7. Asset Disposal20.8. All Other Assets21. Funds Held on Trust21.1. Gifts, Benefactions and Donations21.2. Student Welfare and Access Funds21.3. Trust Funds22. Other22.1. Insurance22.2. Establishing new companies, branches and associates.22.3. Appointment to the Boards of subsidiary and associated companies22.4. Memoranda of Understanding with subsidiary companies22.5. Subsidiary and Associated company reporting requirements22.6. Security over Data and Information22.7. Safeguarding Funds Against Misuse22.8. Fraud Policy and Response Plan22.9. Safekeeping of Legal Documents22.10. Students’ Union22.11. Signing of Official Documents22.12. Use of the University Seal22.13. Provision of Indemnities22.14. Disclosure of Interests22.15. Disclosure of outside directorships and partnerships
FINANCIAL REGULATIONSAGENERAL PROVISIONS1 Background1.1 The University is a chartered corporation. Its structure of governance is laid down in the Charter andStatutes. The Charter and Statutes can only be amended by the Privy Council. The University isaccountable through its Council which has ultimate responsibility for the University’s management andadministration.1.2 The University is an exempt charity by virtue of the Charities Act 1993.1.3 The Financial Memorandum between the Higher Education Funding Council for England (HEFCE) andthe University sets out the terms and conditions on which grant is made. The Council is responsible forensuring that the conditions of grant are met. As part of this process, the University must adhere toHEFCE’s Code of Practice for Audit and Accountability, which requires it to have sound systems offinancial and management control. The financial regulations of the University form part of this overallsystem of accountability.2 Status of Financial Regulations2.1 This document sets out the University’s financial regulations. It translates into practical guidance theUniversity’s broad policies relating to financial control. This document was approved by Council on 5July 2010. It applies to the University, its subsidiary undertakings, branches and other entities wherethe University has management control.2.2 These financial regulations are subordinate to the University’s Charter and Statutes and toany restrictions contained within the University’s Financial Memorandum with HEFCE and HEFCE’s Codeof Practice for Audit and Accountability.2.3 The purpose of these financial regulations is to provide control over the totality of the University’sresources and provide management with assurances that the resources are being properly applied forthe achievement of the University’s strategic plan and business objectives:• financial viability• achieving value for money• fulfilling its responsibility for the provision of effective financial controls over the use of publicfunds• ensuring that the University complies with all relevant legislation• safeguarding the assets of the University.2.4 The Director of Finance and Corporate Services shall ensure that updated copies of the financialregulations are available to all members of Council, Budget Holders and all persons connected with thefinances of the University.2.5 Compliance with the financial regulations is compulsory for all officers, staff and students connectedwith the University. Refusal to comply with the financial regulations will be grounds for disciplinaryaction under the University’s disciplinary procedures. The Council will be notified of any such breachthrough the Audit Committee. It is the responsibility of Deans, Heads of School and Heads ofDirectorate to ensure that their staff are made aware of the existence and content of the University’s
Financial Regulations and supporting financial procedures.2.6 The Strategy and Finance Committee is responsible for maintaining a continuous review of the financialregulations for internal management and for advising the Council of any additions or changesnecessary.2.7 In exceptional circumstances the Strategy and Finance Committee may authorise a departure from thedetailed provisions herein; such departure to be reported to the Council at the earliest opportunity.2.8 The University’s detailed financial procedures set out precisely how these regulations will beimplemented. They are contained in the Financial Manual (incorporating Financial Policies andProcedures) and Finance Practical Guides, which are maintained by the Director of Finance andCorporate Services and made available to all staff via the Finance website.
BCORPORATE GOVERNANCE3 The Court3.1 The Court has no direct responsibility for the University’s financial administration, but the Court’smembers at its meetings are entitled to ask questions on the Annual Accounts or any other financialmatter.4 Council4.1 The Council of the University is the governing body of the University. It has its powers and dutiesconferred upon it by the Statutes and is responsible for the management and administration of therevenue and property of the University and has general control over the conduct of all the affairs of theUniversity. Its financial duties are to:• ensure the solvency of the University• safeguard the University’s assets• ensure the effective and efficient use of resources• ensure that the funds provided by the Funding Council are used in accordance with the termsand conditions specified in the University’s financial memorandum with the Funding Council• ensure that financial control systems are in place and are working effectively• ensure that the University complies with the Funding Council’s Code of Practice for Audit andAccountability• approve the University’s strategic plan• approve annual budgets and the annual financial statements• appoint the external auditors to the University4.2 The Council is empowered to:• appoint bankers, and to cause proper books of account to be kept in respect of money receivedand expended by the University, and for the assets and liabilities of the University, provided thatbefore determining any question of finance which affects the academic policy of the University,the Council shall take into consideration any recommendation by the Senate• invest any monies belonging to or held by the University• acquire and dispose of real and personal property on behalf of the University, whether freeholdor leasehold• enter into, vary, carry out and cancel contracts on behalf of the University• determine all University fees• appoint members to the Audit CommitteeThe full powers of the Council are given at Statute XV.4.3 The Council discharges its financial responsibilities by delegating duties to Committees, particularly theStrategy and Finance Committee and the Senior Management Board and senior officers and bymaintaining an overview of general financial policy with adequate reporting structures to ensure thatthe agreed policies are being implemented.4.4 All members of Council must be aware that they have a responsibility for the University’s finances andmust ensure that they have sufficient information made available to them to fulfill their responsibilities.
5 Senate5.1 The Senate has no direct responsibility for finance, but receives in advance of Council meetings reportsfrom the Strategy and Finance Committee and the Senior Management Board and is able to commenton these to Council.6 Committee Structure6.1 Strategy and Finance CommitteeThe Strategy and Finance Committee is responsible to Council for the financial management of theUniversity. The Committee will examine and recommend approval to the Council of budgets in linewith agreed plans and ensure that those budgets are followed. It will also consider other mattersrelevant to the financial duties of the Council and make recommendations thereon. In addition tobeing responsible for all other aspects of financial management, the Committee must ensure thatsufficient information is given to the Council for it to be satisfied that it is discharging its financialresponsibilities.6.2 Senior Management BoardThe Senior Management Board, which is chaired by the Vice-Chancellor, is responsible to the Strategyand Finance Committee for academic and administrative resource allocation. The Board will examineand recommend approval to the Strategy and Finance Committee of annual budgets in line with agreedplans and will monitor performance against these budgets during the year. During the year it will alsoauthorise projects involving any revenue expenditure or capital expenditure less than £1.0m when asuitable business plan has also been presented and approved.6.3 Audit CommitteeThe Audit Committee is independent of Strategy and Finance Committee and the Senior ManagementBoard and reports directly to the Council. It is responsible for maintaining an overview of the internaland external audit functions, the internal control system, the risk management strategy and thearrangements for ensuring economy, efficiency and effectiveness. It has the right of access to obtain allthe information it considers necessary and to consult directly with the internal and external auditors,and may require information, either written or oral from any University member or officer. The auditrequirements of the University are set out in the HEFCE’s Code of Practice on Audit and Accountability.6.4 Remuneration CommitteeThe Remuneration Committee is responsible for the determination of pay and conditions for theUniversity’s senior executive management, the Professoriate and equivalent non-academic staff. It hasthe power to make recommendations to Council on their remuneration, including pay and otherbenefits, as well as contractual arrangements.6.5 Other CommitteesAll other Committees which have been allocated a budget for any purpose are responsible ultimately tothe Strategy and Finance Committee for all income and expenditure within those budgets.
7 University Members and Officers with Financial Responsibility7.1 TreasurerThe Treasurer, who is a lay member of the Council, is responsible to the Council for maintaining anoverview of the University’s financial policies and resources7.2 Vice-ChancellorThe Vice-Chancellor is the chief academic and administrative officer of the University and is answerableto the University Council for the financial administration of the University’s affairs. He is alsoaccountable, as the Designated Officer under the Financial Memorandum with the Higher EducationFunding Council for England (HEFCE) and the Training and Development Agency for Schools (TDA), forthe use of public funds received by the University.In his capacity as the Designated Officer, the Vice-Chancellor must advise the Council if, at any time, anyaction or policy under consideration by them appears to the Vice-Chancellor to be incompatible withthe Financial Memorandum. If the Council decides nevertheless to proceed, the Vice-Chancellor mustimmediately inform the Chief Executive of the Funding Council in writing. As the Designated Officer,the Vice-Chancellor may be required to justify any of the University’s financial matters to the PublicAccounts Committee at the House of Commons.7.3 Director of Finance and Corporate ServicesDay-to-day financial matters are the responsibility of the Director of Finance and Corporate Services,who is responsible to the Vice-Chancellor for:• preparing annual capital and revenue budgets and financial plans• preparing accounts, management information, monitoring and control of expenditure againstbudgets and all financial operations• preparing the University’s annual accounts and other financial statements and accounts whichthe University is required to submit to other authorities• ensuring the University has satisfactory systems of financial control and administration• providing professional advice on all matters relating to financial policies and procedures• day-to-day liaison with internal and external auditors, bankers and other financial advisers7.4 Head of Internal Audit ServicesThe Head of Internal Audit Services is responsible for providing the Council, the Vice-Chancellor andother senior managers with reasonable assurance on the adequacy and effectiveness of riskmanagement, control and governance arrangements. The Head of Internal Audit Services has directaccess to the Chair of the Audit Committee, the Vice-Chancellor and senior officers where required.The Head of Internal Audit Services reports to the Secretary to the Council on a day-to-day basis.7.5 Director of Estates and Facilities ManagementThe Director of Estates and Facilities Management is responsible for the buildings and estates functionswithin the University, which will include accountability and control of staff, the security, custody andcontrol of all University buildings and other resources, such as materials, cash and stores relating to thisfunction. The Director of Estates and Facilities Management has the right of access to any part of theUniversity.7.6 Budget HoldersHeads of School, Heads of Directorate, and other Budget Holders are responsible to the Vice-Chancellor, through the Senior Management Board, for financial control and management in their areasof responsibility. They are advised by the Director of Finance and Corporate Services in executing theirfinancial duties, and must ensure the proper use of funds in accordance with these financial regulations
and any procedural notes issued to Budget Holders.Heads of School and Directorate are responsible for establishing and maintaining clear lines ofresponsibility for all financial matters within their School or Directorate. Where resources are devolvedto Budget Holders, they are accountable to their Head of School or Directorate for their own budget.7.7 All members of StaffAll members of staff should be aware of and have a general responsibility for the security of theUniversity’s property, for avoiding loss and for due economy in the use of resources.They should ensure that they are aware of the University’s financial authority limits and the values ofpurchases for which quotations and tenders are required.They shall make available any relevant records or information to the Director of Finance and CorporateServices or his or her authorised representative in connection with the implementation of theUniversity’s financial policies, these financial regulations and the system of financial control.They shall provide the Director of Finance and Corporate Services with such financial and otherinformation as he or she may deem necessary, from time to time, to carry out the requirements of theCouncil.All members of the University staff or students must notify immediately the Secretary to the Council orthe Head of Internal Audit Services of any financial irregularity, or any circumstance suggesting thepossibility of irregularity, affecting the financial procedures, cash, stores or other property of theUniversity. Due respect will be given for the confidentiality of those raising such concerns.It is a disciplinary matter if anyone knowingly makes a false or malicious allegation against anothermember of the University.Further information about ‚whistleblowing‛ and the duty of employees and students under the PublicInterest Disclosure Act 1998 can be found on the University’s website.8 Risk Management8.1 The University acknowledges the risks inherent in its business, and is committed to managing thoserisks that pose a significant threat to the achievement of its business objectives and financial health.8.2 The Council, through the Strategy and Finance Committee, has overall responsibility for ensuring thereis a risk management strategy and a common approach to the management of risk throughout theUniversity through the development, implementation and embedment within the organisation of aformal, structured risk management policy. The Council requires an annual review of theimplementation of risk management arrangements.8.3 The University, through the Risk Management Group, a sub-committee of the Senior ManagementBoard, has developed a corporate risk register to identify key corporate risks. Responsibility formonitoring each risk has been assigned to senior officers of the University. The Director of Finance andCorporate Services has day-to-day responsibility for risk management within the University.8.4 Schools and Directorates are also required to maintain risk management registers for their ownactivities and are required to report on their risk management arrangements to the Risk ManagementGroup.
9 Code of Conduct9.1 The institution is committed to the highest standards of openness, integrity and accountability. It seeksto conduct its affairs in a responsible manner, having regard to the principles established by theCommittee on Standards in Public Life, which members of staff at all levels are expected to observe.These principles cover:• integrity and accountability• selflessness, objectivity and honesty• openness and leadership9.2 Additionally, members of the Council, senior members of staff or those involved in procurement arerequired to disclose interests in the University’s register of interests maintained by the Secretary to theCouncil. They will also be responsible for ensuring that entries in the register relating to them are keptup to date regularly and promptly.9.3 In particular, no person shall be a signatory to a University contract where he or she also has an interestin the activities of the other party.9.4 Receiving gifts or hospitalityIt is an offence under the Prevention of Corruption Act 1906 for members of staff to accept corruptlyany gift or consideration as an inducement or reward for doing, or refraining from doing, anything in anofficial capacity or showing favour or disfavour to any person in an official capacity. The guidingprinciples to be followed by all members of staff must be:• the conduct of individuals should not create suspicion of any conflict between their official dutyand their private interest• the action of individuals acting in an official capacity should not give the impression (to anymember of the public, to any organisation with whom they deal or to their colleagues) that theyhave been (or may have been) influenced by a benefit to show favour or disfavour to any personor organisation.Thus, members of staff should not accept any gifts, rewards or hospitality (or have them given tomembers of their families) from any organisation or individual with whom they have contact in thecourse of their work that would cause them to reach a position whereby they might be, or might bedeemed by others to have been, influenced in making a business decision as a consequence ofaccepting such hospitality. The frequency and scale of hospitality accepted should not be significantlygreater than the University would be likely to provide in return.Guidance on acceptable hospitality is contained in the University’s Expenses and Hospitality Policy,which is available on the University’s website.
CFINANCIAL MANAGEMENT AND CONTROL10 Financial Planning and Budgetary Control10.1 The Director of Finance and Corporate Services is responsible for preparing a five year rolling FinancialStrategy.10.2 The Financial Strategy is published on the Finance website and addresses:• how the financial strategy is developed and integrated within the University’s corporate plan• how the corporate plan is translated into an operating plan and annual budget• how the University’s resources are managed, controlled and protected• how the University’s assets are identified, safeguarded and utilised• how the University ensures that all liabilities are identified and properly managed10.3 The Strategy and Finance Committee is responsible for preparing plans for resource allocation and forlong-term financial forecasts for submission to the Council.10.4 The Director of Finance and Corporate Services is responsible for ensuring proper procedures exist forthe control of income and expenditure against approved budgets. Regular information will beprovided to Budget Holders, the Senior Management Board, the Strategy and Finance Committee andthe Council.10.5 The Director of Finance and Corporate Services is responsible for preparing each year an annual budget,incorporating income and expenditure account, balance sheet and cash flows, and capital programmefor consideration by the Strategy and Finance Committee, before submission to the Council.10.6 Deans, Heads of School and Heads of Directorate are responsible for the economic, efficient andeffective use of resources allocated to them.10.7 No capital expenditure on land and buildings, information technology infrastructure, or majorcorporate systems can be incurred unless a scheme has been approved by the Strategy and FinanceCommittee (or by committees, boards or other officers authorised by the Strategy and FinanceCommittee) and the source of funds has been agreed. The Director of Finance and Corporate Servicesshall maintain detailed records of those with the authority to incur expenditure on behalf of theUniversity.The Strategy and Finance Committee is responsible for seeing that a Project Committee is appointed foreach major capital project (those with an estimated cost in excess of £1 million) and that a budget isduly prepared for their approval.The Director of Finance and Corporate Services is responsible for approving capital expenditure onplant and equipment.11 Accounting arrangements11.1 Financial yearThe University’s financial year will run from 1 August until 31 July the following year.11.2 Basis of accounting
The consolidated financial statements are prepared on the historical cost basis of accounting and inaccordance with applicable accounting standards.11.3 Format of the financial statementsThe financial statements are prepared in accordance with the Statement of Recommended PracticeAccounting for Further and Higher Education, subject to any specific requirements of the Funding Council,and in accordance with the provisions of the Companies Act 2006, if that is appropriate.11.4 Provision of Financial Statements and financial management informationThe Director of Finance and Corporate Services is responsible for providing to the Strategy and FinanceCommittee as soon as is practicable at the end of the year Financial Statements for that year and in-yearreports at intervals and in a format to be determined by the Strategy and Finance Committee.11.5 Accounting Systems and RecordsAll accounting systems and records within the University shall be in accordance with the requirementsof the Director of Finance and Corporate Services. Schools and Directorates should avoid setting upduplicate financial systems and records where the main accounting system meets their requirements.11.6 Retention of accounting recordsThe Director of Finance and Corporate Services is responsible for the retention of financial and relateddocuments. These should be kept in a form that is acceptable to the relevant authorities.The University is required by law to retain prime documents for six years. These include:• purchase orders• paid invoices• paid cheques• payroll records, including part-time lecturers’ and sessional contracts• sales invoices• receipts• banking recordsMembers of staff should also ensure that retention arrangements comply with any specificrequirements of funding organisations.11.7 Public accessUnder the terms of the Charities Act 1993, the Council is required to supply any person with a copy ofthe University’s most recent financial statements within two months of a request and the Freedom ofInformation Act requires any request to be dealt with within 20 working days. These Acts enable theCouncil to levy a reasonable fee and this will be charged at the discretion of the Director of Finance andCorporate Services. The University will make a copy of the accounts available to the public on theUniversity’s website once they have been approved by Council.11.8 TaxationThe Director of Finance and Corporate Services is responsible for providing advice, in the light ofguidance issued by the appropriate bodies and relevant legislation as it applies, on all taxation issues,to the University. The Director of Finance and Corporate Services will issue instructions and guidanceon compliance with statutory requirements including those concerning VAT, PAYE, national insurance,corporation tax and import duty.The Director of Finance and Corporate Services is responsible for maintaining the University’s taxrecords, making all tax payments, receiving tax credits and submitting tax returns by their due date asappropriate.
12 Audit Requirements12.1 GeneralExternal auditors and internal auditors shall have authority to:• access University premises at reasonable times• access all assets, records, documents and correspondence relating to any financial and othertransactions of the University• require and receive such explanations as are necessary concerning any matter underexamination• require any employee of the University to account for cash, stores or any other Universityproperty under his or her control• access records belonging to third parties, such as contractors, when required.12.2 External auditThe appointment of external auditors will take place annually and is the responsibility of the Council.The Council will be advised by the Audit Committee.The primary role of external audit is to report on the University’s financial statements and to carry outsuch examination of the statements and underlying records and control systems as are necessary toreach their opinion on the statements and to report on the appropriate use of funds. Their duties will bein accordance with advice set out in the HEFCE’s Code of Practice on Audit and Accountability and theAuditing Practices Board’s statements of auditing standards.12.3 Internal auditThe internal auditor is appointed by the Council on the recommendation of the Audit Committee.The University’s Financial Memorandum with the Funding Council requires that it has an effectiveinternal audit function whose duties and responsibilities are in accordance with advice set out inHEFCE’s Code of Practice for Audit and Accountability. The main responsibility of internal audit is toprovide the Council, the Vice-Chancellor and senior management with assurances on the adequacy andeffectiveness of risk management, control and governance arrangements.The internal audit service remains independent in its planning and operation but has direct access tothe President of the Council, Vice-Chancellor and Chair of the Audit Committee. The Head of theInternal Audit Service reports directly to the Secretary to the Council on a day-to day basis.12.4 Value for moneyIt is a requirement of the Financial Memorandum that the University’s Council is responsible fordelivering value for money from public funds. It should keep under review its arrangements formanaging all the resources under its control, taking into account guidance on good practice issuedfrom time to time by HEFCE, the National Audit Office, the Public Accounts Committee and otherrelevant bodies.To fulfil this responsibility, the Director of Finance and Corporate Services will develop and revise eachyear a plan for value for money work that will provide evidence of compliance with the FundingCouncil’s requirements. It will be used to enable the Audit Committee to report on value for moneyarrangements in their annual report to the Council.12.5 Other AuditorsThe University may, from time to time, be subject to audit or investigation by external bodies such as
HEFCE, the National Audit Office, the European Court of Auditors, and HM Revenue and Customs. Theyhave the same rights of access as external and internal auditors.13 Treasury Management13.1 Treasury management policyThe Strategy and Finance Committee is responsible for approving a Treasury Management Policy settingout a strategy and policies for cash management, long-term investments and borrowings. This willrequire compliance with Funding Council’s rules regarding approval for any secured or unsecured loansthat go beyond the general consent levels set out in the Financial Memorandum. The Strategy andFinance Committee has a responsibility to ensure implementation, monitoring and review of suchpolicies.13.2 Banking arrangementsThe University’s banking arrangements shall be decided by the Council on the advice of the Strategyand Finance Committee from time to time. All arrangements with the University’s bankers concerningthe University’s bank accounts, and those of its subsidiaries, and the issue of cheques shall be made bythe Director of Finance and Corporate Services on behalf of the Strategy and Finance Committee.No other part of the University shall be empowered to operate a bank account in the name of theUniversity or its subsidiaries and branches and all cheques or financial instruments made payable to theUniversity shall be credited to the University’s account.Arrangements for the signature and countersignature on University cheques, the authorisation ofelectronic banking transactions and the arrangements for bank account reconciliations are set out inthe University’s Financial Manual.13.3 BorrowingAll arrangements for exercising the borrowing powers of the Council, as defined in the Charter andStatutes, shall be made by the Strategy and Finance Committee.13.4 InvestmentsThe Strategy and Finance Committee is responsible for the investment of the University’s long-termendowment funds,as advised by the Investments Committee. It may seek such external advice as itconsiders necessary and may employ managers for the University investment funds.14 Income14.1 GeneralThe Director of Finance and Corporate Services is responsible for ensuring that appropriate proceduresare in operation to enable the University to receive all income to which it is entitled.All receipt forms, invoices, tickets or other official documents must have the prior approval of theDirector of Finance and Corporate Services.Arrangements for the prompt collection, security and banking of all funds received shall be made underthe direction of the Director of Finance and Corporate Services.14.2 Receipt of cash, cheques and other negotiable instrumentsAll monies received must be banked promptly, and in accordance with a timetable prescribed by theDirector of Finance and Corporate Services and set out in financial procedures. The custody and transit
of all monies received must comply with the requirements of the University’s insurers.All sums received must be paid in and accounted for in full, and must not be used to meetmiscellaneous expenses or be paid into the petty cash floats. Personal or other cheques must not becashed out of money received on behalf of the University.The University does not accept cash payments for goods when the value of the payment is theequivalent of 15,000 Euros or more for any single transaction.14.3 Receipts by credit or debit cardThe University may only receive payments by debit or credit card using procedures approved by theDirector of Finance and Corporate Services.14.4 Sales invoicing and the collection of debtsThe Director of Finance and Corporate Services should ensure that:• debtors invoices are raised promptly on official invoices, in respect of all income due to theUniversity. The only exception to this regulation is where research council and EU grants aremanaged centrally, as described under 15.1• invoices are prepared with care, recorded in the ledger, show the correct amount due and arecredited to the appropriate income accountprocesses are in place to perform credit checks on customers where appropriate• any credits granted are valid, properly authorised and completely recorded• VAT is correctly charged where appropriate, and accounted for• monies received are posted to the correct debtors account• swift and effective action is taken in collecting overdue debts, in accordance with the protocolsnoted in the financial procedures• outstanding debts are monitored and reports prepared for management• where appropriate and proper, debt collection costs are recovered from the debtorAll credit arrangements must be approved by the Director of Finance and Corporate Services.14.5 Student feesThe procedures for collecting tuition and residence fees must be approved by the Director of Financeand Corporate Services.14.6 Write offsAmounts properly due to the University shall only be written off when all reasonable steps have beentaken to recover the debt and all debt write offs must go through an approval processTuition fee and academic related debt over £1,000 must first be approved by the Director of StudentServices before being referred to the Director of Finance and Corporate Services. All other requests towrite off debts in excess of £1,000 must be referred in writing to the Director of Finance and CorporateServices for consideration. The Director of Finance and Corporate Services will forward proposals forthe write off of accommodation fees and related debt to the Residences Management Committee orthe Catering and Hospitality Committee for approval, as appropriate.Debts below this level may be written off with the prior approval of the Director of Finance andCorporate Services.
All write off proposals over £50,000 will be forwarded to the Strategy and Finance Committee forapproval, and all write offs between £10,000 and £50,000 will be notified to Strategy and FinanceCommittee as memorandum items.14.7 Credit notesAll credit notes over £250 require the prior approval of the Director of Finance and Corporate Services,and all credit notes must first be approved by the Head of School or Directorate.Under delegated authority from the Director of Finance and Corporate Services, the Director of StudentServices approves all tuition fee credits processed via the student record system, and the Director ofResidential and Commercial Services approves all residence fee credits processed via theaccommodation system.15 Research Grants and Contracts15.1 Acceptance of research grants and contractsResearch grants and contracts shall be accepted on behalf of the University by the Director of Financeand Corporate Services or other duly authorised officers. Under no circumstances should applicationsbe submitted without prior approval of the Director of Finance and Corporate Services, throughResearch and Enterprise Services.The Director of Finance and Corporate Services is responsible for examining every formal applicationfor grant and shall ensure that there is adequate provision of resources to meet all commitments. TheDirector of Finance and Corporate Services should ensure that the full cost of research contracts isestablished. The research agreement must be in line with the University’s policy with regard to fulleconomic costing (fEC) taking account of different procedures for the pricing of research projectsdepending on the nature of the funding body.The Director of Finance and Corporate Services shall maintain all financial records relating to researchgrants and contracts and shall initiate all claims for reimbursement from sponsoring bodies by the duedate. These claims may be in the form of cost statements and may not necessarily be recorded as adebtors invoice.15.2 Grant and contract conditionsMany grant-awarding bodies and contracting organisations stipulate conditions under which theirfunding is given. In addition, there are often procedures to be followed regarding the submission ofinterim or final reports or the provision of other relevant information. Failure to respond to theseconditions often means that the University will suffer a significant financial penalty. It is theresponsibility of the named supervisor or grant holder to ensure that conditions of funding are met.Any loss to the University resulting from a failure to meet conditions of funding is the responsibility ofthe budget holder, and will be charged against School funds.16 Other Income-Generating Activity16.1 Short Courses and other services renderedIn this context a short course is any course which does not form part of the award-bearing teaching loadof the School.
The term ‘services rendered’ includes testing and analysis of materials, components, processes andother laboratory services or the use of existing facilities in order to gain additional information. It alsoincludes any University consultancy work performed for external customers.All short courses and other services (including consultancies) rendered must be costed in accordancewith the University’s costing and pricing policy and the financial provisions approved by the Director ofFinance and Corporate Services before any commitments are made.Before any University consultancy is undertaken written permission must be sought from the Head ofSchool. Guidelines are given in the University’s Consultancy Policy.16.2 New income generating or trading activityThe Director of Finance and Corporate Services must be informed, in advance, of any discrete incomegeneratingactivity which would generate income in excess of £20,000.The Director of Finance and Corporate Services may direct that transactions be undertaken through asubsidiary company.16.3 Private consultancies and other private workThe regulations governing private work undertaken by University staff are set out, where necessary, inthe appropriate conditions of service and within the University’s Consultancy Policy.The main provision in the regulations is that staff undertaking private work must ensure that it does notimpair the performance of their University duties. Staff must not hold themselves out as acting onbehalf of the University, or use University headed stationery.The permission of the Head of School or Directorate and of the Vice-Chancellor is required for anyprivate work whether or not it involves the use of University resources. If it does involve the use ofUniversity resources an economic charge will be made for these.The University accepts no responsibility for any work done, advice given or activity undertaken by staffin their private capacity.17 Intellectual Property Rights and Patents17.1 GeneralCertain activities undertaken within the University including research and consultancy may give rise toideas, designs and inventions which may be patentable. These are collectively known as intellectualproperty.17.2 PatentsThe Strategy and Finance Committee is responsible for establishing procedures to deal with any patentsaccruing to the institution from inventions and discoveries made by staff in the course of their research.17.3 Intellectual property rightsIn the event of the University deciding to become involved in the commercial exploitation of inventionsand research, the matter should then proceed in accordance with the intellectual property procedurescontained within the University’s Code of Practice on Intellectual Property.17.4 Commercial exploitation of Intellectual propertyThe Strategy and Finance Committee shall approve procedures to encourage and assist staff to
maximise the commercial exploitation of inventions and procedures resulting from research within theUniversity.17.5 Disposals of Intellectual PropertyAll disposals of intangible assets will require the prior approval of the Strategy and Finance Committee,on the advice of the Director of Finance and Corporate Services and the Technology Transfer AdvisoryGroup (TTAG).18 Expenditure and Purchasing18.1 GeneralThe Director of Finance and Corporate Services is responsible for making payments to suppliers ofgoods and services to the institution.18.2 Scheme of delegation/financial authoritiesThe Head of School or Directorate is responsible for purchases within his or her area of responsibility.The Head of School or Directorate may delegate up to 50% of his or her purchasing authority to namedindividuals within the School or Directorate. In exercising this delegated authority, Budget Holders arerequired to observe the University’s procurement policies and financial procedures.The Director of Finance and Corporate Services shall maintain a register of all staff authorised toapprove purchase orders, receipt goods and services, and certify invoices to payment.Staff are not permitted to authorise any payment to themselves, their spouses, partners or relatives, orany organisation with which they, their family or relatives have a connection or permit any member oftheir staff to do so.18.3 ProcurementThe University requires all Budget Holders, irrespective of the source of funds, to obtain supplies,equipment and services at the lowest possible cost consistent with quality, delivery requirements andsustainability, and in accordance with the University’s Procurement Policy and Procedures.Heads of Schools and Directorates should ensure that Budget Holders are aware of the University’sProcurement Policy, which is available on the Procurement Department’s website.The Head of Procurement shall be responsible for arrangements and procedures for all official ordersissued for supplies of services required by the University.All orders may be placed only if they are in compliance with the requirements of the Head ofProcurement and the tendering procedures have been carried out18.4 Capital ExpenditureAll capital expenditure on land, buildings, furniture, equipment and associated costs must only beincurred if it is part of an approved budget and detailed financial procedures for such financialtransactions are followed.The Director of Finance and Corporate Services shall be responsible for providing regular statementsrelating to all capital expenditure to the Strategy and Finance Committee.18.5 Purchasing Cards
The operation and control of the University’s purchasing cards is the responsibility of the Director ofFinance and Corporate Services.Holders of purchasing cards must use them only for the purposes for which they have been issued andwithin the authorised purchase limits. Cards must not be loaned to another person, nor should they beused for personal or private purchases. Cardholders should obtain approval to purchase from therelevant budget holder and should ensure that there is sufficient budget available to meet the costs.The Director of Finance and Corporate Services shall determine what information is required onpurchases made with purchasing cards from cardholders and deadlines for receipt in Finance to enablefinancial control to be maintained and cardholders must provide that information.Details of the operation of the scheme are set out in the University’s Financial Manual.18.6 Payment of invoicesThe procedures for making all payments shall be in a form specified by the Director of Finance andCorporate Services.Heads of Schools and Directorates are responsible for ensuring that expenditure within their Schoolsand Directorates does not exceed agreed budgets without prior approval from the Director of Financeand Corporate Services.Invoices must be passed to Finance as soon as they have been certified and care must be taken toensure that all available discounts are obtained.Payments will only be made by the Director of Finance and Corporate Services against invoices thathave been certified for payment by those with the appropriate delegated authority.The Director of Finance and Corporate Services will automatically pay invoices that quote a validpurchase order number and have been duly receipted in the purchase to pay system.18.7 Staff reimbursementThe University’s procurement and payments procedures are in place to enable the majority of non-paysupplies to be purchased through the creditors system without staff having to incur any personalexpense. However on occasion, staff may incur expenses, most often in relation to travel, and areentitled to reimbursement.Such expenditure must be claimed using the University’s expense claim form, and the claim must be inaccordance with the University’s Expenses and Hospitability and Procurement policies.All staff using their own vehicles on behalf of the University shall maintain appropriate insurance coverfor business use.18.8 AdvancesCash advances may be given for projects carried out away from the University where cash expendituremay be unavoidable. Other forms of payment will be expected to be used wherever possible, such as anofficial purchase order and subsequent payment, or purchasing card.Advances must be approved by the Head of School or Directorate. Any advances in excess of £2,000must be approved in advance by the Director of Finance and Corporate Services.Receipts or paid invoices must be retained for all sums expended in this way. Within one month ofcompletion of the project to which the advance relates an expense claim form giving a final account
must be prepared to demonstrate how the advance was disbursed and any unspent balance repaid.Under no circumstances will a second advance be approved when the final accounting for an earlieradvance is outstanding.18.9 Giving hospitalityStaff entertaining guests from outside bodies should normally use the University’s catering facilities.Where this is not the case, reasons must be stated when submitting a claim for reimbursement.The limits concerning acceptable expenditure for entertaining guests are set out in the Expenses andHospitality Policy.18.10 Making donationsDonations (in either cash or kind) must not be made without the prior approval of the SeniorManagement Board.19 Pay Expenditure19.1 Remuneration policyAll institution staff will be appointed to the salary scales or spot salary approved by the Council and inaccordance with appropriate conditions of service.All letters of appointment or variations in conditions of service must be issued by the Director ofHuman Resources through the HR Operations Team.All payments of salaries must be made through the HR Operations Team.Salaries and other benefits for senior management will be determined by the RemunerationCommittee. In addition, the Remuneration Committee is responsible for approving all severancepayments for senior staff and those in excess of £50,000. Lay members of Council will have theirreasonable travelling expenses reimbursed by the University.19.2 Appointment of staffAll contracts of service shall be concluded in accordance with the University’s approved personnelpractices and procedures.Budget Holders shall ensure that the Director of Finance and Corporate Services and the Director ofHuman Resources are provided promptly with all information they may require in connection with theappointment, resignation or dismissal of employees.19.3 Superannuation schemesThe eligibility of staff for membership of the Universities Superannuation Scheme (USS) or theUniversity of Reading Employees Pension Scheme (UEPS) will be detailed in individual contracts ofemployment.The Strategy and Finance Committee shall be responsible for undertaking the Council’s role asemployer in relation to all superannuation matters.The Director of Finance and Corporate Services is responsible for day-to-day superannuation matters,including:• paying contributions to various authorised superannuation schemes• preparing the annual return to various superannuation schemes
• administering the University of Reading Employees Pension Scheme.20 Assets20.1 Land and buildingsThe purchase, lease, rental or disposal of land or buildings can only be undertaken with authority fromthe Strategy and Finance Committee or the Investments Committee on behalf of the Council.All such decisions will be recorded in full in the minutes of the relevant committee.20.2 Fixed asset registerThe Director of Finance and Corporate Services is responsible for maintaining the University’s register ofland, buildings, fixed plant and machinery and other assets costing over £10,000. Heads of School andDirectorate will provide the Director of Finance and Corporate Services with any information requiredto maintain the register.20.3 InventoriesHeads of School and Directorate are responsible for maintaining inventories in a form prescribed by theDirector of Finance and Corporate Services for all plant, equipment, furniture and stores in theirdepartments with a value in excess of £500 and any items that are portable and attractive (eg printers,cameras etc). The inventory must include special collections, items donated or held on trust.Inventories must be checked, safeguarded and amended in accordance with the instructions given bythe Director of Finance and Corporate Services or the Head of Procurement.20.4 Stocks and storesHeads of School and Directorate are responsible for establishing adequate arrangements for thecustody and control of stocks and stores within their Schools and Directorates. The systems used forstores accounting must have the approval of the Director of Finance and Corporate Services.Heads of School and Directorate are responsible for ensuring that regular inspections and stock checksare carried out. Stocks and stores of a hazardous nature should be subject to appropriate securitychecks.Those Heads of School and Department whose stocks require valuation in the University’s balancesheet at the financial year end must ensure that the stock-taking procedures in place have the approvalof the Director of Finance and Corporate Services and that instructions to appropriate staff within theirSchools are issued in accordance with advice contained in the University’s detailed financialprocedures.20.5 Safeguarding assetsHeads of School or Directorate are responsible for the care, custody and security of the buildings, stock,stores, furniture, cash, etc under their control. They will consult the Director of Estates and FacilitiesManagement in any case where security is thought to be defective or where it is considered that specialsecurity arrangements may be needed.No property should be removed from University premises without prior permission of the Head ofSchool or Directorate.20.6 Personal useAssets owned or leased by the University shall not be subject to personal use.20.7 Asset disposal
Disposal of inventory items must be in accordance with the procedures issued by the Head ofProcurement.Disposal of fixed assets and their removal from the fixed asset register must be in accordance with theUniversity’s Fixed Asset Accounting Policy, and requires the prior approval of the Director of Financeand Corporate Services.The Investments Committee has delegated authority to dispose of land and buildings from within theinvestment portfolio and is required to report all such disposals to the Strategy and FinanceCommittee. All other disposals of land and buildings must only take place with the authorisation of theStrategy and Finance Committee on behalf of the Council.20.8 All other assetsHeads of School and Directorate are responsible for establishing adequate arrangements for thecustody and control of all other assets owned by the University, whether tangible (such as stocks orinventoried items) or intangible (such as intellectual property), including electronic data.20.9 Loss of assets or damage to propertyHeads of Schools or Directorates must advise the Insurance Officer immediately of any event that maygive rise to an insurance claim. The Insurance Officer will notify the University’s insurers and, ifappropriate, prepare a claim in conjunction with the Head of School or Directorate for transmission tothe insurers.20.10 Leasing propertyAll lease agreements or licenses for third parties to occupy University property shall be signed by theDirector of Finance and Corporate Services21 Funds Held on Trust21.1 Gifts, benefactions and donationsThe Director of Finance and Corporate Services is responsible for maintaining financial records inrespect of gifts, benefactions and donations made to the University and initiating claims for recovery oftax where appropriate.21.2 Student Welfare and Access FundsThe Director of Finance and Corporate Services will prescribe the format for recording the use ofstudent welfare funds.Records of Access Funds will be maintained according to funding body requirements.21.3 Trust fundsThe Strategy and Finance Committee is responsible for ensuring that all the University’s trust funds areoperated within any relevant legislation and the specific requirements for each Trust.The Director of Finance and Corporate Services is responsible for maintaining a record of therequirements for each trust fund and for advising Strategy and Finance Committee on the control andinvestment of fund balances.22 Other22.1 Insurance
The Insurance Officer, through the Director of Finance and Corporate Services, is responsible for theUniversity’s insurance arrangements, including the provision of advice on the types of cover available. Aspart of the overall risk management strategy all risks will have been considered and those mosteffectively dealt with by insurance cover will have been identified. This is likely to include importantpotential liabilities and provide sufficient cover to meet any potential risk to all assets.The Insurance Officer is responsible for effecting such insurances as are determined from time to timeby the Strategy and Finance Committee. He or she is therefore responsible for obtaining quotes,negotiating claims and maintaining the necessary records. The Insurance Officer will keep a register ofall insurances effected by the University and the property and risks covered. He or she will also deal withthe University’s insurers and advisers about specific insurance problems.The Director of Estates and Facilities Management is responsible for keeping suitable records of plantwhich is subject to an inspection by an insurance company and for ensuring that inspection is carriedout in the periods prescribed.Heads of Schools and Directorates must ensure that any agreements negotiated within their School orDirectorate with external bodies cover any legal liabilities to which the University may be exposed. TheInsurance Officer’s advice should be sought to ensure that this is the case.Heads of Schools or Directorates are responsible for ensuring that the Insurance Officer is immediatelynotified of any potential new risks and additional property and equipment that may require insuranceand of any alterations affecting existing risks.22.2 Establishing new companies, branches or associates.No University company, associate or branch shall be formed for any purpose without the specificapproval of the Strategy and Finance Committee.22.3 Appointments to the Boards of subsidiary and associated companiesWhere a University subsidiary company is established or the University takes a shareholding in a thirdparty company, the appointment of directors to these companies is a matter for the Strategy andFinance Committee.22.4 Memoranda of understanding with subsidiary companiesUniversity subsidiary companies shall enter into and keep under review a memorandum ofunderstanding with the University. Each company shall operate in accordance with such memorandumand within the framework provided by these Financial Regulations, and any additional proceduralrequirement imposed by their Boards of Directors.Any permitted departures from these Financial Regulations will be encompassed in the memorandumof undertstanding.22.5 Associated company reporting requirementsThe directors of companies where the University is the majority shareholder must submit, via theStrategy and Finance Committee, an annual report to the Council. They will also submit business plansor budgets as requested to enable the Committee to assess the risk to the University. The University’sinternal and external auditors shall also be appointed to such companies.22.6 Security over data and informationThe Director of Academic Services shall be responsible for maintaining proper security and privacy ofinformation held on the University’s computer network. Appropriate levels of security will be provided,such as passwords for networked PCs, together with restricted physical access for network servers.
Information relating to individuals held on computer will be subject to the provisions of the DataProtection Act 1998. A data protection officer shall be nominated to ensure compliance with the Actand the safety of documents.The Director of Governance shall have responsibility for implementing and monitoring policies for theprotection and management of data.Keys to safes are to be carried on the person of those responsible at all times. The loss of such keysmust be reported immediately to the Insurance Officer.22.7 Safeguarding funds against misuseHeads of School and Directorate are responsible for the proper application of funds at the disposal oftheir School or Directorate. In exercising their responsibility Heads of School and Directorate musthave regard to security measures to safeguard University funds and assets against misuse ormisappropriation. They must consult with the Insurance Officer to see that appropriate insurance isarranged.22.8 Fraud Policy and Response PlanThe University’s Fraud Policy and Fraud Response Plan are contained within the Financial Manual,available on the University’s website.22.9 Safekeeping of legal documentsThe Secretary to the Council has responsibility for the safekeeping of legal documents relating to theUniversity. Details of the University’s property ownership are maintained by the Director of Estates andFacilities Management.22.10 Students’ UnionThe financial responsibilities of the Students’ Union are set out in the Students’ Union Code of Practicein the Calendar.The Students’ Union is a separate legal entity from the University. It shall maintain its own bank accountand financial records and prepare its own annual accounts.Subject to any constraints imposed by the funding body, the Strategy and Finance Committee shalldetermine the level of grant to be paid annually to the Students’ Union. The Committee requires theUnion to provide for information details of its proposed budget to assist in determining the appropriatelevel of grant.The Director of Finance and Corporate Services and the Head of Internal Audit Services have the right ofaccess to the financial records of the Students’ Union in so far as they relate to the payment by theUniversity of the annual Block Grant.22.11 Signing of official documentsThe Council shall approve arrangements for the delegation to senior officers of the University to signofficial documents on its behalf22.12 Use of the University SealAll Deeds and documents requiring to be sealed by the University shall be sealed in the presence of twopersons one of whom shall be a member of the Council and the other an authorised officer.A report shall be submitted to each meeting of the Council recording the Deeds and documents towhich the University Seal has been affixed since the last meeting of the Council.
The Secretary to the Council shall be responsible for the security and use of the University Seal. TheDirector of Finance and Corporate Services shall keep records of the Seal’s use.22.13 Provision of indemnities and guaranteesAny member of staff asked to give an indemnity or guarantee, for whatever purpose, should consult theDirector of Finance and Corporate Services before any such indemnity is given. Any document orcontract committing the University to any indemnities or guarantees can only be signed with theexpress prior approval of the Senior Management Board.22.14 Disclosure of InterestsA member of Council, or a member of staff, having a material, personal, financial or other beneficialinterest in any transaction between the University and third parties shall disclose his or her interest inwriting in advance of any discussion or decision regarding that transaction. In the case of a member ofthe Council the disclosure should be made to the Secretary to the Council and, in the case of a memberof staff, to their Head of School or Directorate.Any member of any Committee, having a personal interest in any matters (whether or not recorded inthe Register of Interests) shall declare that interest, and such declaration shall be recorded. Themember shall withdraw from the meeting in question unless this requirement is waived by theChairman.22.15 Disclosure of outside directorships and partnershipsAny member of Council or member of staff who is about to accept a new directorship or partnershipwhich may result in a conflict of interest, should discuss this in advance with the Secretary to theCouncil.
Appendix 12Public Interest Disclosure (‘Whistleblowing’)Policy and Procedures
Handbook for members of the Council Appendix 12attempts to conceal any of the above.SafeguardsProtection5. This policy is designed to offer protection to those defined in clause 3 who disclose suchconcerns provided the disclosure is made:i. in good faith, and is made in accordance with the procedures outlined below;ii. in the reasonable belief of the individual making the disclosure that it tends to showmalpractice.Confidentiality6. The University will treat all such disclosures in a confidential and sensitive manner. Theidentity of the individual making the allegation may be kept confidential so long as itdoes not hinder or frustrate any investigation. However, the investigation process mayreveal the source of the information and the individual making the disclosure may needto provide a statement as part of the evidence required.Anonymous Allegations7. Only exceptionally will the University consider disclosures made anonymously.Untrue Allegations8. If an individual makes an allegation in good faith, which is not confirmed by subsequentinvestigation, no action will be taken against that individual. If, however, an individualmakes malicious or vexatious allegations, disciplinary action may be taken against theindividual concerned.Procedures for making a disclosureInitial Step9. A person who believes in good faith that they have discovered evidence of malpracticewithin the University should make a disclosure in writing to the University Secretary andDirector of Governance who will, as soon as is practicable, inform the Vice-Chancellorand the President of the Council. The Vice-Chancellor will normally consult with theUniversity’s Internal Audit Services in the event of a matter arising under the UniversityFinancial Regulations. If, however, the disclosure is about the University Secretary andDirector of Governance then the disclosure should be made to the Vice-Chancellor, whowill inform the President of the Council10. If the individual does not wish to raise the matter with either of the University Secretaryand Director of Governance or the Vice-Chancellor then he or she may raise it with theChairman of the Audit Committee.11. In all cases the person making the disclosure will be required to confirm in writing thathe or she is making a disclosure within the terms of this policy and only disclosures soconfirmed will be considered.12. In addition, a ‘Whistleblowing’ hotline is available on 0118 378 6353 within InternalAudit Services.©University of Reading 2011 Monday, 14 November 2011 Page 2
Handbook for members of the Council Appendix 12Process13. The person to whom the disclosure is made under 9 or 10 above (the ‘designated person’)will consider the information made available to him/her and decide if there is a primafacie case to answer. If so:i. the person or persons against whom the disclosure is made will be told of it, and ofthe evidence supporting it, and will be allowed to respond at that stage;ii. the ‘designated person’ shall decide what steps need to be taken. These will dependon the nature of the matter raised and may be either through internal procedures orby referral to the police.14. If the ‘designated person’ decides that there is no prima facie case then, subject to 15.Below, the disclosure shall be struck out.Investigation15. In the case of internal procedures there shall be normally an initial investigation toestablish all relevant facts, conducted by an appropriate member of the University notinvolved in the matter disclosed and selected by the ‘designated person’. A writtenreport of the findings should be made to the ‘designated person’. Using this informationand in the light of any response under 12(a) above the ‘designated person’ will decidewhat further action, if any, is appropriate whether through harassment, complaints orgrievance procedures, or otherwise.Feedback16. The ‘designated person’ will inform the individual making the disclosure of what action,if any, is to be taken. If no action is to be taken then the individual concerned shall beinformed of the reason for this and allowed the opportunity to remake the disclosure tothe Chairman of Audit Committee (if not the ‘designated person’) or to the President ofCouncil. The Chairman or the President shall decide on an appropriate course of actionbased on the information available to them.Reporting of Outcomes17. A report of all disclosures and any subsequent actions taken will be made by the‘designated person’ to the Council, except that in the case of a disclosure where it isdetermined that there is no prima facie case to answer only the fact of the disclosure andnot its content shall be reported. The University Secretary and Director of Governancewill maintain a register of all confirmed Public Interest Disclosure cases which areinvestigated within the University and shall include within that register:the date the disclosure was made;the type of allegation made;the potential risks to the University;the status of the investigation.18. Provided the disclosure has been made lawfully, without malice and in the publicinterest, the University will seek to ensure that the position of the complainant in theUniversity – as a member of staff, a student or a worker – is not disadvantaged as a resultof the making of the allegation. The University will, however, take steps to defend itselfand its members against defamatory statements or actions by any individual or group,and will seek appropriate redress.May 2009Revisions approved by Council 7 July 2009©University of Reading 2011 Monday, 14 November 2011 Page 3
Handbook for members of the Council Appendix 12Key University Contacts under the PolicyDesignation Contact details Telephone number and email1. University Secretary and Directorof GovernanceRoom 214Whiteknights House0118 378 firstname.lastname@example.org. Vice-Chancellor Room 317Whiteknights House3. Chairman of the Audit Committee c/o Room 214Whiteknights House4. President of the Council c/o Room 214Whiteknights House0118 378 62260118 378 email@example.com 378 firstname.lastname@example.orgContacts for concerns not necessarily arising under the PolicyType of concern Contact Telephone number andemailFraud, or other financialirregularity, breaches of financialregulations, or conflicts of interestMisuse of IT equipment or systemsUnsafe working practices orenvironmentHead of Internal Audit ServicesRoom 208Whiteknights HouseDirector of InformationTechnology ServicesRoom 102, Mathematics BuildingWhiteknightsHead of Health and Safety ServicesRoom 110, Physics BuildingWhiteknights0118 378 email@example.com 378 84310118 378 firstname.lastname@example.orgHealth mattersBreaches of data protection andfreedom of information standards,corporate governance or theUniversity’s Charter, Statutes,Ordinances and RegulationsPhysical security issuesGrievance or disciplinary issuesThe Health Management clinic(Occupational Health):Brightwell House, 40 Queens RoadReading. RG1 4AU(contact through HumanResources)Head of Information Managementand Policy Services (IMPS)Room 221, Whiteknights HouseDirector of Facilities ManagementFacilities Management BuildingWhiteknightsDirector of Human ResourcesRoom 121, Whiteknights House0118 378 87510118 378 email@example.com 378 firstname.lastname@example.org 378 email@example.com©University of Reading 2011 Monday, 14 November 2011 Page 4
Appendix 13Fraud Policy and Fraud Response Plan
ltsadminSection nameAppendix 13Fraud Policy and Fraud Response PlanContentsPart A: IntroductionPart B: Fraud policyPart C: Fraud response plan1. Initiating Action2. Prevention of Further Loss3. Establishing and Securing Evidence4. Associated Responsibilities5. Recovery of Losses6. Internal Control Assessment7. Reporting8. Fraud Policy and Fraud Response Plan ReviewAppendix 11.1 Personal Conduct1.2 Systems of Internal ControlAugust 2010©University of Reading 2011 Monday 14 November 2011 Page 1
Part A: IntroductionThe University is, and wishes to be seen by all as being, honest and opposed to fraud in theway it conducts University business. The objective of the Fraud Policy and Response Plan is tosafeguard the proper use of the University’s finances and resources, including the financeand resources of its subsidiary companies, against fraudulent or corrupt acts; and to complywith the law and relevant regulations. This document sets out the University’s policy andprocedures for dealing with the risk of fraud or corruption.In order to minimise the risk and impact of fraud, the University’s objectives are:firstly, to create a culture which deters fraudulent activity, encourages its prevention andpromotes its detection and reporting andsecondly, to ascertain and document its response to cases of fraud and corrupt practices.In order to achieve these objectives, the University has taken the following steps:1. the development and publication of a formal statement of its expectations in this area onstandards of personal conduct, propriety and accountability (App 1 section 1.1);2. the establishment of adequate and effective systems of internal financial and managementcontrol (and a clear requirement to comply with them), an Audit Committee and anindependent Internal Audit Service with an ongoing responsibility to review and report onthese systems (App 1 section 1.2);1. the development and publication of a fraud policy and a fraud response plan whichsets out the University’s procedures to be invoked following the reporting of possiblefraud or the discovery of actual fraud.DefinitionThe Metropolitan Police Fraud Squad defines fraud as: Theft involving the distortion,suppression or falsification of financial record. The Law Commission in its report on Fraud(July 2002) developed a broad definition: Any person who, with intent to make a gain or tocause loss or to expose another to a risk of loss dishonestly:i. makes a false representation; orii. fails to disclose information to another person which:a) he or she is under a legal duty to disclose;b) is of a kind which the other person trusts him or her to disclose, and isinformation which in the circumstances it is reasonable to expect him or her todisclose; oriii. abuses a position in which he or she is expected to safeguard, or not to act against, thefinancial interests of another person or of anyone acting on that person’s behalf.Taken together, these definitions show that fraudulent behaviour could involve eitherinternal disciplinary action, proceedings in the civil courts or prosecution by police.©University of Reading 2011 Monday, 14 November 2011 Page 2
Part B: Policy1. The University will not tolerate fraud, and expects the following standards of conductand behaviour (further detailed at Appendix 1 section 1.1).All staff, students, members of the Council or Committees established by the Council,should behave in a fair and honest way in any dealings related to the University. Thisapplies equally to both internal conduct, and also externally in relation to our suppliers,partners and other business associates.All staff should apply themselves diligently to their work and the execution of theirduties. Specifically they should have due regard to the need to rigorously apply thoseinternal controls, rules and regulations which are designed to prevent, deter and detectfraud.As well as operating within the law and any specific agreements or contracts, allexternal organisations dealing with the University must conduct themselves inaccordance with normal ethical business standards consistent with the University’scharitable status and public-sector funding.Staff, students, members of the Council or Committees established by the Council,should be aware of the University’s Public Interest Disclosure (Whistleblowing) Policyand the right this gives them to raise legitimate concerns about possible fraud, as wellas other problems/irregularities.Any member of staff, students, members of the Council or Committees established bythe Council, supplier, partner or associate should promptly report to the designatedcontact within the University, ie the University Secretary and Director of Governance orthe Head of Internal Audit Services, all legitimate concerns about suspected fraud orirregularity.2. Where any fraud is committed against the University, consideration will always begiven to prosecuting the person/organisation responsible through all criminal and/orcivil means available.3. A major objective in any fraud investigation will be the punishment of theperpetrators, to act as a deterrent to others. The University will follow disciplinaryprocedures against any member of staff or student who has committed fraud. TheUniversity will normally involve the police and pursue the prosecution of any suchindividual.©University of Reading 2011 Monday, 14 November 2011 Page 3
Part C: Fraud response planThe Fraud Response Plan sets out the University’s procedures for ensuring that all allegationsand reports of fraud or dishonesty are properly followed up, are considered in a consistentand fair manner and that prompt and effective action is taken to:assign responsibility for investigating the fraud;minimise the risk of any subsequent losses;reduce any adverse operational effects;specify the degree of confidentiality required;implement damage limitation (to assets and reputation);establish and secure evidence necessary for criminal and disciplinary action;improve the likelihood and scale of recoveries;inform the police and liaise with insurers;review the reasons for the incident and improve defences against future fraud.The main elements of the University’s plan are as follows:1. Initiating actionReporting of any suspicions of fraud or irregularityStaff are encouraged to come forward and give information where they honestly believesomeone may have committed or be about to commit an act of fraud or corruption. A formalPublic Interest Disclosure (Whistleblowing) Policy has been established to provide aframework for this and to afford protection to employees who supply information, providedthis is undertaken in good faith and without malice.All actual or suspected incidents should be reported to the University Secretary and Directorof Governance or the Head of Internal Audit Services as soon as possible. Any reports will betreated in absolute confidence. Notes of any relevant details such as dates, times and namesshould be written and evidence collected together in preparation to hand over to theappropriate investigator.The person reporting the fraud should not:contact the suspect to determine facts or demand restitution;discuss case facts outside of the University;discuss the case with anyone within the University other than those staff mentioned above;attempt to carry out investigations or interviews unless specifically asked to do so by theHead of Internal Audit Services.Fraud Response GroupAs soon as is practicably possible and usually within one working day the UniversitySecretary and Director of Governance will hold a meeting with some or all of the followingstaff to consider the initial response, dependent upon the nature of the report. These staffwill comprise the ‘Fraud Response Group’ (FRG) and the University Secretary and Director ofGovernance will act as Chair of the Group:©University of Reading 2011 Monday, 14 November 2011 Page 4
University Secretary and Director of Governance (or nominee)Head of Internal Audit Services (or nominee)Deputy Vice-Chancellor (or nominee)Director of Finance and Corporate Services (or nominee)The Vice-Chancellor should be informed of any action taken by the FRG (unless the suspectedfraud directly involves the Vice-Chancellor).If any suspected fraud directly involves any of the persons referred to above, then therelevant reference should be replaced by the Vice-Chancellor.The Chair of the Audit Committee will be informed where losses potentially exceed £10,000.The FRG will determine what further investigative action (if any) is necessary. In particularthe following issues will be considered:who to involve in the investigation;whether to appoint an officer to lead the investigation (this would normally be the Headof Internal Audit Services);whether there should be any restrictions on who needs to know about the suspected fraudand level of confidentiality;whether police involvement is necessary, or whether civil action is appropriate;whether more specialist expertise may be required to assist with the investigation;action under the terms of the University’s insurance policy to ensure prompt reporting;action to ensure that, in the short-term, damage to the University is limited, by:iv. isolating the employee from the immediate work environment;v. preventing access to University computers, and the workplace;vi. restricting the movement of assets;vii. ensuring compliance with HR policies;viii. ensuring any interview is timely and has clear objectives.It is essential that any action or gathering of evidence does not prejudice the University’sability to prevent fraudulent activity or recover losses incurred through fraud. Staff reportingfraud should follow advice from the Head of Internal Audit Services or the Chair of the FRG.2. Prevention of further lossix. Where initial investigation provides reasonable grounds for suspecting a member ormembers of staff of fraud, the Fraud Response Group will decide how to preventfurther loss. This may require the suspension, with or without pay, of those undersuspicion.x. It may be necessary to plan the timing of suspension to prevent the destruction orremoval of evidence that may be needed to support disciplinary or criminal action.xi. In these circumstances, the suspect(s) should be approached unannounced by at leasttwo people (one of whom should be part of the FRG) and personal safety of staffshould be considered. The suspect(s) should be supervised at all times before leavingthe University’s premises.©University of Reading 2011 Monday, 14 November 2011 Page 5
xii.xiii.xiv.xv.They should be allowed to collect personal property under supervision, but should notbe able to remove any property belonging to the University. Any security passes andkeys to premises, offices, and furniture should be returned.The Head of Campus Services should advise on the best means of denying access tothe University while suspects remain suspended.The Director of IT Services should be instructed to withdraw the suspect’s accesspermissions to all the University’s computer systems immediately.The Head of Internal Audit Services shall, after approval by the FRG, consider whetherit is necessary to investigate systems other than that which has given rise to suspicion,through which the suspect may have had opportunities to misappropriate theUniversity’s assets.3. Establishing and securing evidenceWhen Internal Audit Services are involved they will:carry out initial fact finding to confirm or dismiss the complaint;ensure any evidence, including IT facilities, is secure;maintain familiarity with the University’s disciplinary procedures and statutory rights, toensure the evidence requirements will be met during any fraud investigation;establish and maintain contact with the police where appropriate;ensure staff involved are compliant with the Police and Criminal Evidence Act wheninterviewing and are familiar with the rule on the admissibility of documentary and otherevidence in criminal proceedings.4. Associated responsibilitiesResponsibility for investigationAll special investigations shall normally be led by the Head of Internal Audit Services underthe direction of the FRG. Some special investigations may require the use of technicalexpertise which the University’s Internal Audit Services does not possess. In thesecircumstances, the FRG may approve the appointment of external specialists to lead orcontribute to the investigation.References for employees disciplined or prosecuted for fraudAny requests for a reference for a member of staff who has been disciplined or prosecuted forfraud shall be referred to the Director of Human Resources (or Deputy). The HR Departmentshould prepare any answer to such a request.5. Recovery of lossRecovering losses is a major objective of any fraud investigation. Internal Audit Services shallensure that in all fraud investigations, the amount of any loss will be quantified. Repaymentof losses should be sought in all cases.Where the loss is substantial, legal advice should be obtained without delay about the needto freeze the suspect’s assets through the court, pending conclusion of the investigation.Legal advice should also be obtained about prospects for recovering losses through the civil©University of Reading 2011 Monday, 14 November 2011 Page 6
court where the perpetrator refuses payment. The University would normally expect torecover costs in addition to losses.The University insurers should be made aware of the pursuit of any such claims.6. Internal control assessmentThe Head of Internal Audit Services will, at an appropriate time, consider the results of theinvestigations and assess whether there is a weakness in the University’s systems of internalcontrol which needs to be addressed urgently, and will report accordingly.7. ReportingOn completion of a special investigation, a written report should be submitted to the Vice-Chancellor and to the Audit Committee and will include the following:a description of the incident, including the value of any loss, the people involved and themeans of perpetrating the fraud;the measures taken to prevent a recurrence;action needed to strengthen future responses to fraud, with a folllow-up report onwhether actions have been taken.This report will be prepared by the Head of Internal Audit Services.Notifying the Funding BodyThe University Secretary and Director of Governance or the Head of Internal Audit Serviceson behalf of the Vice-Chancellor should notify the HEFCE Accounting Officer of any seriousweakness, significant fraud or major accounting breakdown. Significant fraud is usuallywhere one or more of the following apply:the sums of money involved are, or potentially are, in excess of £25,000*;the particulars of the fraud, theft, loss of charity assets or other irregularity may reveal asystemic weakness of concern beyond the institution, or are novel, unusual or complex;there is likely to be public interest because of the nature of the fraud, theft, loss of charityassets or other irregularity or the people involved.*The Model Financial Memorandum between HEFCE and Institutions, Annex B, the AuditCode of Practice (July 2010/19), paragraph 16, refers.8. Fraud policy and fraud response plan reviewThe Head of Internal Audit Services will review the response plan annually, or after each usein an investigation to ensure it is relevant and appropriate. Any need for change will bereported to the Audit Committee for approval.©University of Reading 2011 Monday, 14 November 2011 Page 7
Appendix 11.1 Personal conductThe University aims to promote an organisational culture which encourages the preventionof fraud by raising awareness of the need for high standards of personal conduct. To helpensure that all employees are aware of the University’s expectations regarding standards ofpersonal conduct, appropriate guidance is provided in the following key statements withinthe University Financial Regulations, Guide to Policy and Procedures and Procurement Policy.i. Terms and Conditions of Service state that an appointment is subject to the Charter,Statutes, Ordinances and Regulations of the University and the Rules for Staff as mayfrom time to time be in force.ii. Compliance with the financial regulations is compulsory for all officers, staff andstudents. Refusal to comply with the financial regulations will be grounds fordisciplinary procedures. (Financial Regulation 2.5)iii. Professors, Readers, Senior Lecturers, Lecturers and certain other defined staff aresubject to Statute XXXIII which provides for dismissal for ‘good cause’. As to otherstaff, the Disciplinary Code clearly states that an employee may be summarilydismissed for gross misconduct e.g. theft, fraud, deliberate falsification of records,deliberate contravention of the University’s financial regulations, etc. (DisciplinaryProcedure on the HR website athttp://www.reading.ac.uk/internal/humanresources/policiesandprocedures/ResolvingProblems/humres-disciplinary.aspxiv. A member of Council, or a member of staff, having a material, personal, financial orother beneficial interest in any transaction between the University and third partiesshall disclose his or her interest in writing in advance of any discussion or decisionregarding that transaction. In the case of a member of Council the disclosure shouldbe made to the University Secretary and Director of Governance, and in the case of amember of staff to the Head of School or Directorate. (Financial Regulation 22.14)v. University employees must never use their authority or office for personal gain andmust seek to uphold and enhance the standing of the University of Reading.(Procurement Policy – Section 4 - Ethical Principles p20)vi. Staff are not permitted to authorise any payment to themselves, their spouses,partners, relatives or any organisation with which they, their family or relatives havea connection, or permit a member of their staff to do so. (Financial Regulation 18.2)vii. All members of the University staff or students must notify immediately theUniversity Secretary and Director of Governance or the Head of Internal AuditServices of any financial irregularity, or any circumstance suggesting the possibility ofirregularity, affecting the financial procedures, cash, stores or other property of theUniversity. Due respect will be given to the confidentiality of those raising suchconcerns. (Financial Regulation 7.7)viii. It is a disciplinary matter if anyone knowingly makes a false or malicious allegationagainst another member of the University. (Financial Regulation 7.7)©University of Reading 2011 Monday, 14 November 2011 Page 8
ix. The University has also issued guidelines in respect of matters in connection with thePublic Interest Disclosure Act 1998 (Whistleblowing), to ensure the highest standardsof openness, probity and accountability are achieved and that employees are givenlegal protection against being dismissed or penalised by their employers as a result ofdisclosing a serious concern. The Public Interest Disclosure Policies and Proceedings,is available on the website atwww.reading.ac.uk/internal/staffportal/guidetopolicyandprocedures/sp-guide aspx.x. The Corporate and Social Responsibility Business Conduct Policy athttp://www.reading.ac.uk/finance/rdgonly/policies/manual/B3BusinessConductPolicyAnnex1.pdfxi. further outlines the University’s expected code of behaviour regarding financialregulations and procedures, fraud, conflicts of interest, gifts and hospitality,confidentiality and the Public Interest Disclosure Act 1998.In addition, the Procurement Policy 2010-2011 (p 21) and the Expenses and Hospitality Policy(June 2010) provide guidance concerning gifts and hospitality, confidentiality, competition,declaration of interests and expenses.Taken together, these regulations represent a statement of the framework within whichofficers and employees are expected to conduct themselves.1.2 Systems of internal controlThe next line of defence against fraud is the establishment of operating systems whichincorporate adequate and effective internal controls designed to minimise the incidence offraud, limit its impact and ensure its prompt detection. These controls include high levelmanagement controls such as budgetary control (designed to identify fraud which results inshortfalls in income or overspendings against expenditure) and organisational controls suchas separation of duties, internal check and staff supervision. HR policies are also a key partof setting the culture and deterring fraud. This includes taking appropriate steps during thecourse of the recruitment process to reduce the risk of employing dishonest staff.The general framework of responsibilities for financial management and the policies relatingto the broad control and management of the University are documented in the FinancialRegulations. The Financial Regulations are issued and updated periodically by the Directorof Finance and Corporate Services following approval by the Strategy and Finance Committeeon behalf of the University Council. They are binding on all officers, members of staff,students and constituent parts of the University and are distributed to Deans, Heads ofDirectorate/School/Department/Unit Managers and Financial Administrators. The Director ofFinance and Corporate Services also maintains a Financial Manual which sets out in greaterdetail controls which should operate within the key operational systems.The University has also established an Audit Committee and an independent Internal AuditService which provides advice to management in respect of control matters and whichconducts a cyclical programme of reviews of the adequacy and effectiveness of the systemswhich have been put in place (including those intended to minimise the potential exposureto fraud and corruption). Internal Audit Services also highlight any areas which theyconsider should be documented in greater detail within the Financial Regulations orProcedures and are able to advise on systems of internal financial control.©University of Reading 2011 Monday, 14 November 2011 Page 9
Appendix 14Model Financial Memorandum between HEFCEand institutions (August 2010/19)including Mandatory requirements and Audit Code of Practice (Annexes A and B)
July 2010/19 July 2010/19Core Core funding/operationsJuly Report July 2010/19 July Report 2010/19Core funding/operationsCore Effective Report 1 Report Effective August 2010 1 August 2010Effective 1 Effective 1 August 2010 1 2010 August 2010The Financial The Memorandum, Financial Memorandum, between HEFCE between and HEFCE the and theinstitutions institutions we fund, sets we fund, out the sets terms out the and terms conditions and conditionsforThe Thepayment Financialfor of payment HEFCEThe Financial Memorandum,of grants. HEFCE TheMemorandum, betweengrants. memorandumbetween HEFCEThe memorandumand HEFCE and the theand theshould institutionsbe should readinstitutions we weinfund, fund,be conjunction readsets we setsinfund, out outconjunction withthe sets thePartterms terms2, without the and andthePart terms conditions2, theand conditionsschedule,for for paymentschedule, whichfor of payment ofgives HEFCEwhich conditionsof HEFCE grants.gives conditionsThe Thespecificgrants. memorandumto specific the to theThe memoranduminstitution, should be beinstitution, theshould read readfundsin be in conjunctionavailable the funds to availableread in conjunction with withthe institution,Part Partto2, with 2,thethe theinstitution, and andPart 2, thethe schedule,educational theschedule, which whicheducational provisiongives gives which conditionsthe provision institution thegives conditions specificinstitution has agreedto specific to the thehas in agreed into thereturn institution,for those returninstitution, the thefunds. forfunds fundsthose This the availablefunds. documentfunds to available toThisthe thedocument supersedesinstitution,supersedesto the institution, and and andHEFCEthe the educational2008/19 HEFCE issued 2008/19the educational provisionin August issuedthe provision the institutionin 2008. Augustthe institution has has2008.agreed has in in agreed inreturn return for for those return those funds. for funds. those This This funds. document This document supersedes supersedesHEFCE HEFCE 2008/19 issued 2008/19 issued in in issued August in 2008. 2008. August 2008.July July 2010/19 2010/19July 2010/19 July 2010/19July July 2010/19 2010/19July 2010/19Core funding/operationsReportEffective 1 August 2010Model FinancialModel FinancialMemorandumMemorandumbetween HEFCEbetween HEFCEand and institutionsModel and and institutionsFinancialTermsMemorandumconditions for payment ofTerms and conditions for payment ofHEFCE Terms Terms HEFCE and grants and grants conditions to higher to higher for educationfor payment education payment of of ofbetweenHEFCE HEFCE institutionsgrants grants to to higher to HEFCEhigher educationinstitutionsand institutionsThe Financial Memorandum, between HEFCE and theinstitutions we fund, sets out the terms and conditionsfor payment of HEFCE grants. The memorandumshould be read in conjunction with Part 2, theschedule, which gives conditions specific to theinstitution, the funds available to the institution, andthe educational provision the institution has agreed inreturn for those funds. This document supersedesHEFCE 2008/19 issued in August 2008.FreeFreeFreeFreeFreeJulyJuly2010/192010/19CoreCorefunding/operationsfunding/operationsReportReportJuly 2010/19Core funding/operationsReportTerms and conditions for payment ofEffective 1 August 2010HEFCE Effective 1 August grants 2010 to higher educationshould be read in conjunction with Part 2, theinstitutionsEffective 1 August 2010The Financial Memorandum, between HEFCE and theThe Financial Memorandum, between HEFCE and theinstitutions we fund, sets out the terms and conditionsinstitutions we fund, sets out the terms and conditionsfor payment of HEFCE grants. The memorandumfor payment of HEFCE grants. The memorandumshould be read in conjunction with Part 2, theThe Financial should Memorandum, be read in conjunction between HEFCE with Part and 2, theschedule, which gives conditions specific to theinstitutions schedule, we fund, which sets gives out the conditions terms and specific conditions to theinstitution, the funds available to the institution, andfor payment institution, of HEFCE the funds grants. available The memorandum to the institution, andthe educational provision the institution has agreed inthe educational provision the institution has agreed inreturn for those funds. This document supersedesschedule, return which for gives those conditions funds. This specific document to thesupersedesHEFCE 2008/19 issued in August 2008.institution, HEFCE the funds 2008/19 available issued to in the August institution, 2008. andthe educational provision the institution has agreed in
Alternative formatsThis publication can be downloaded fromthe HEFCE web-site (www.hefce.ac.uk)under Publications. For readers withoutaccess to the internet, we can also supplyit on CD or in large print. For alternativeformat versions please call 0117 931 7431or e-mail firstname.lastname@example.org© HEFCE 2010The copyright for this publication is held by theHigher Education Funding Council for England(HEFCE). The material may be copied orreproduced provided that the source isacknowledged and the material, wholly or in part,is not used for commercial gain. Use of the materialfor commercial gain requires the prior writtenpermission of HEFCE.TMENVIRONMENTALLY FRIENDLY
ContentsPageForeword 3Model Financial Memorandum between HEFCE and institutions 5Purpose of this document 5Our responsibilities to institutions 5Institutions’ responsibilities to HEFCE 6Financial management and sustainability 9Other requirements on institutions 10Accountability and risk assessment 10Revisions to the Financial Memorandum 11Annex A Mandatory requirements of the Financial Memorandum and Audit Code of Practice 12Annex B Audit Code of Practice 14Annex C Allocating and paying funds 25Annex D Institutional engagement and support strategy 26Annex E Model annual assurance return from institutions 32Annex F Consent for financial commitments 34Annex G Exchequer interests 38Annex H Information requirements for HEIs that are exempt charities 40Annex I Summary of responsibilities of members of governing bodies 43Annex J Model letters of appointment for new head of institution and the accountable officer 45Annex K Model letter of appointment for new chair of a governing body 48Definitions and abbreviations 49HEFCE 2010/19 1
2 HEFCE 2010/19
Foreword to the 2010 edition of the ModelFinancial MemorandumHEFCE is a non-departmental public body. Thismeans that while our remit is set by the Secretary ofState for Business, Innovation and Skills, we are notpart of any government department. This enables usto act as a broker between universities, colleges andthe Government ensuring the appropriate institutionalfreedom for teaching and research. The Governmentdecides on the total public funding for highereducation, and we distribute this funding fairly andtransparently, according to agreed criteria.Under the Further and Higher Education Act 1992,which established HEFCE, the Secretary of State isnot entitled to frame his conditions of grant to us byreference to specific institutions, or to particularcourses of study or programmes of research, or to thecriteria for the selection and appointment ofacademic staff or for the admission of students. Thisis designed to safeguard both institutional andacademic autonomy, which are widely regarded askey factors in the success of English higher education.We strongly endorse these principles.However, HEFCE does have a clear regulatory dutyto ensure that universities in receipt of public fundsprovide value for money and are responsible in theiruse of these funds. We also ensure that the fundingwe distribute accurately reflects what is delivered.In addition, we now act as the principal regulator forthose universities and colleges that are exemptcharities, advising the Charity Commission whereappropriate. We aim to reduce the accountabilityburden on institutions by enabling other publicbodies, wherever possible, to rely on our systems ofoversight and assurance.HEFCE is also legally responsible for making surethat the quality of learning and teaching is assessedin each university and college across England. Wealso assess the quality of research, enabling us tofund research selectively by supporting excellencewherever it is found.As accounting officer, the chief executive of HEFCEhas a personal responsibility to safeguard publicfunds and achieve value for money as set out in HMTreasury guidance, ‘Managing Public Money’. Thisincludes responsibility for the public funds allocatedby the Council to higher and further educationinstitutions and other bodies for education, researchand associated purposes.Higher education in England is made up of a diverserange of institutions of varying size and complexity.To give expression to the principle of autonomy,every institution is headed by a governing bodywhich is unambiguously and collectively responsiblefor overseeing the institution’s activities, determiningits future direction, and fostering an environment inwhich the institutional mission is achieved and thepotential of all students is realised. The governingbody ensures compliance with the statutes,ordinances and provisions regulating the institutionand its framework of governance. HEFCE funding isprovided explicitly to the governing body as theinstitution’s ultimate authority.The chair is responsible for the leadership of thegoverning body and the executive head of institution(usually the vice-chancellor or principal) isresponsible for the leadership of academic affairs andmanagement of the institution. The employmentstatus of the head of institution, including his or herappointment (or dismissal), is governed byemployment law and is the responsibility of thegoverning body.This approach draws on the expertise and diligenceof governors and a relationship of trust betweenHEFCE and institutions which serves highereducation well.The principle of institutional autonomy and thesystem of regulation on which it depends relies onclear lines of accountability for the properstewardship of public funds and on being able todemonstrate to Parliament and the public that, in theexceptional circumstance when something goeswrong, there is a clear mechanism to put it right.The purpose of the Financial Memorandum is toprovide this clarity and assurance by defining theformal relationship between HEFCE, governingbodies and heads of institutions.Alan LanglandsChief ExecutiveHigher Education Funding Council for EnglandJuly 2010HEFCE 2010/19 3
4 HEFCE 2010/19
Model Financial Memorandum betweenHEFCE and institutionsTerms and conditions for payment of HEFCE grants tohigher education institutionsPurpose of this document1. This Model Financial Memorandum sets out theformal relationship between HEFCE and thegoverning bodies and accountable officers of thehigher education institutions (HEIs) it funds. Itreflects our responsibility to provide annualassurances to Parliament that:• our funds are being used for the purposes forwhich they were given• risk management, control and governance in thesector are effective• value for money is being achieved.2. The Financial Memorandum is in two parts.Part 1 (this document) sets out the terms andconditions which apply in common to allinstitutions funded by HEFCE. Part 2 (issued eachyear as the ‘grant letter’) gives conditions specific toeach institution, a schedule of funds available in theacademic year, and the educational provision theinstitution has agreed to make in return for thosefunds. References to the memorandum embraceboth Part 1 and Part 2.3. Institutions are bound by the requirements oftheir charter and statutes (or equivalent) and byrules relating to their charitable status. Thisdocument does not supersede those requirementsbut is intended to complement and reinforce them.4. This memorandum, including the Audit Code ofPractice (Annex B), takes effect from 1 August2010. The content of the memorandum which dealswith financial management and sustainability(paragraphs 28-33 and Annex F) will be subject toreview in consultation with the higher education(HE) sector, commencing in 2010-11, to ensure thatour requirements reflect the changing economiccircumstances for institutions and anticipateddevelopments in financial reporting requirements.Our responsibilities to institutions5. HEFCE is the major public sector funder ofHEIs as a whole and has lead public accountabilityfor them. As such we will work with institutionsand the higher education sector to the highstandards of openness, integrity and consistencyexpected of public sector bodies. We recognise thatinstitutions are autonomous bodies and will actreasonably, and acknowledge that institutionsaccept that they are accountable for the publicfunds they receive. We will not ask for informationthat we already have, and as far as possible we willrely on data and information that institutions haveproduced to meet their own needs. We will try tomake regulation efficient and ensure that its benefitsoutweigh the costs to institutions, ourselves andother parties.6. We aim for two-way openness and transparencywith institutions and other stakeholders. Werecognise that this may sometimes conflict with thedesire to protect commercial confidentiality. Incomplying with the Freedom of Information Actand similar legislation we will try to make it clearto institutions what information we regard asconfidential, and where objections to publicationarise we will judge each case on its merits.7. Our grants to institutions are to fund activitiesdefined by the Further and Higher Education Act1992 (‘the 1992 Act’). For HEIs these are:• providing education and undertaking research• providing facilities and undertaking activitiesthat the institution’s governing body thinks arenecessary or desirable for providing education ordoing research.8. Our funding is subject to certain conditions, asset out in the 1992 Act. The Act allows us to addconditions to our funding, including specialconditions for particular HEIs. We will consult thesector on any material changes to generalconditions. These conditions of funding do notapply to any funds that institutions receive fromother sources, although the principles will bereflected in conditions of grant associated withother public sector income to institutions. We wantto encourage institutions to develop other sources ofHEFCE 2010/19 5
income that are consistent with their overall missionand objectives.9. We will review an institution’s annualaccountability returns to us, and give to theaccountable officer and governing body aconfidential risk assessment. We will not make ourrisk assessments public until three years haveelapsed. This period, based on advice from theInformation Commissioner, gives an institution thatis designated ‘at higher risk’ time to address itsproblems. We will make our risk assessmentsavailable within this three-year period, on anexceptional and confidential basis, to:• other public funders to enable those bodies tomake their own assessments of risk, and• to the National Audit Office who mayexceptionally need to discuss those assessmentsat the Public Accounts Committee or disclosethem in a published report.We must do this to minimise the risk to publicfunds distributed by those bodies.10. We may exceptionally make public a riskassessment at any stage if we have strong groundsfor believing that it is in the general public interestto do so. We will only share or publish our riskassessments after having notified the accountableofficer and governing body of the institutionconcerned. When we assess an institution to be athigher risk, we will engage with it in line with ourinstitutional engagement and support strategy (seeAnnex D).11. We define an institution as at higher risk whenin our judgement, on the basis of all availableevidence, it:• faces threats to the sustainability of itsoperations either now or in the medium term• has serious problems relating to value formoney, propriety or regularity (that is, whetherfunds are used for the purpose intended), or• has materially ineffective risk management,control or governance.More detail on how HEFCE assesses institutionalrisk is given at Annex D, Table 2.Institutions’ responsibilities toHEFCE12. Institutions need to provide HEFCE withcertain information about their viability and theway they operate, because we have responsibilityand lead public accountability for HEIs. Ourinformation requirements are set out in thisFinancial Memorandum and in annual guidance onfinancial statements and accountability returns.Institutions also have an obligation to supplyinformation to enable us to fulfil our new role asprincipal regulator of HEIs as charities under theCharities Act. The information required for this issummarised at Annex H, and it largely draws onexisting returns that institutions make to HEFCE.13. Institutions are accountable to all theirstakeholders, not just HEFCE, and thisresponsibility is easier if they operate in an openand transparent way. An institution needs to planand deliver its activities effectively, in line with itsmission and objectives, and to meet its various legalrequirements.Governing bodies14. Governing bodies of HEIs and their membershave a set of legal responsibilities and other duties.These are outlined in Annex I. These responsibilitiesare summarised in this document to reinforce forgovernors what their role requires. Annex I alsoclarifies what issues HEFCE can and cannot becomeinvolved in. It is important for institutionalautonomy that the scope of HEFCE’s role isunderstood, and that HEFCE is not expected toenforce legal or mandatory responsibilities that arenot within its remit.15. Taken together, the responsibilities of membersof a governing body and of the governing body as awhole are considerable, and must be met. Itsmembers are trustees of charitable bodies, and havethe responsibilities and potential liabilities that gowith trustee status. Members who act prudently,lawfully and in accordance with the governinginstrument should not find themselves liable fortheir actions. However, HEFCE will be obliged inexceptional cases to use its powers and consider allrelevant options to ensure that governing body6 HEFCE 2010/19
members discharge their duties under thismemorandum and as trustees. In addition, inrelation to trustee responsibilities, the CharityCommission has the power to take proceedingsagainst trustees who have acted imprudently.Trustees need to be particularly careful to ensurethat the charity has the means to meet itsobligations when the institution is entering intosubstantial contracts or borrowings.16. HEFCE will in exceptional cases considerdesignating an institution as ‘at higher risk’ if it hasfirm grounds for believing that a governing body isnot discharging its duties under this FinancialMemorandum and is unable or unwilling to committo improvement. HEFCE would expect to arrive atsuch a judgement on the basis of an assessment ofthe institution’s governance. Our assessment wouldinclude a dialogue with the governing body aboutour concerns and conclusions. In such a case, andafter the governing body’s views had beenconsidered, HEFCE may make its risk assessmentpublic, in line with paragraph 10. This would be onthe basis that when a publicly funded body issubject to ineffective governance it is of publicinterest. HEFCE may also place conditions of granton an institution that fails to address the risks ofineffective governance where this puts publicfunding at risk.17. Members of governing bodies and accountableofficers should comply with the principles set out bythe Committee on Standards in Public Life, andtheir conduct should always be in the publicinterest. They are accountable for their decisionsand actions, and must submit themselves towhatever scrutiny is appropriate to their office.They should also be as open as possible about allthe decisions and actions that they take. HEFCEwill write to the new chair of each governing body,on appointment, drawing attention to their ownand their governing bodies’ responsibilities underthe Financial Memorandum. A model for this letteris at Annex K.18. The governing body of an institution iscollectively responsible and has ultimate nondelegableresponsibility for overseeing theinstitution’s activities, determining its futuredirection and fostering an environment in which itsmission is achieved. In accordance with theinstitution’s own statutes and constitution, thereshould be effective arrangements for providingassurance to the governing body that the institution:• has a robust and comprehensive system of riskmanagement, control and corporate governance• has regular, reliable, timely and adequateinformation to monitor performance and trackthe use of public funds• plans and manages its activities to remainsustainable and financially viable• informs us of any change in its circumstanceswhich – in the judgement of the accountableofficer and in agreement with the governingbody – is a material adverse change, as well asany significant developments that could impacton the mutual interests of the institution andHEFCE• uses public funds for proper purposes andstrives to achieve good value for money frompublic funds• complies with the mandatory requirementsrelating to audit, set out in our Audit Code ofPractice and our annual accounts direction• sends us:−−−−the annual accountability returnsother information we may reasonablyrequest to understand the institution’s riskstatusany data requested on our behalf by theHigher Education Statistics Agency(HESA)information needed to enable us to act asprincipal charity regulator for the HEI• has effective arrangements for the managementand quality assurance of data submitted toHESA, HEFCE and other funding bodies (wereserve the right to use our own estimates ofdata where we have reason to believeinstitutional data are not fit for purpose).Responsibility for the quality of data used forinternal decision making and externalreporting, which must be fit for purpose, restsHEFCE 2010/19 7
with the institution itself. Data submitted forfunding purposes must comply with directionspublished by HEFCE; if in doubt institutionsshould ask their HEFCE regional consultant toprovide an authoritative, written ruling• has an effective framework – overseen by itssenate, academic board or equivalent – tomanage the quality of learning and teachingand to maintain academic standards• considers our assessment of its risk status,engages with us during the risk assessmentprocess, and takes action to manage or mitigatethe risks we agree upon.Head of institution and accountable officer19. Each governing body will appoint a head ofinstitution. It will delegate to that personresponsibility for the executive management of theinstitution and its policies.20. Under this Financial Memorandum, thegoverning body is responsible for the use of funds.To assist and enable it to discharge thisresponsibility and to provide clear accountability,the governing body will designate a senior officer,normally the head of the institution, as the‘accountable officer’: that is, the officer who reportsto HEFCE on behalf of the institution. On beingnotified by, or on behalf of, the governing body of anew accountable officer, HEFCE will write to thatindividual explaining what the responsibilities of anaccountable officer involve. A model for this letteris shown at Annex J.21. The accountable officer is personallyresponsible to the governing body for ensuringcompliance with the terms of this FinancialMemorandum and for providing HEFCE with clearassurances to this effect.22. The head of institution is first and foremostresponsible for leadership of the academic affairsand executive management of the institution. Theappointment (or dismissal) of the head of institutionis governed by employment law, and this is clearlythe responsibility of the governing body. HEFCEhas no role, rights or responsibilities in relation tothe appointment (or dismissal) of the head ofinstitution and has no wish to change this position.We presume that in a case where a head ofinstitution does not discharge his/her duties or actsimproperly the governing body will takeappropriate action.23. The head of institution as the accountableofficer is also required to report to HEFCE onbehalf of the institution in relation to therequirements set out in paragraph 18. Inexceptional circumstances HEFCE may take theview that the accountable officer is failing to meetthese responsibilities. Faced with this positionHEFCE would be obliged to respond and in a fair,reasonable and proportionate way.24. If, in the judgement of the HEFCE chiefexecutive, there is evidence of serious failure inrelation to the oversight and management of publicfunds, he will raise this as appropriate with theaccountable officer concerned and/or the chair ofthe governing body; provide the relevant evidence;and seek and consider a response. Experiencesuggests that most difficulties can be resolvedthrough this process.25. In extremis, and after all due process has beenexhausted, the HEFCE chief executive mayconclude that the accountable officer is unable tomeet his/her responsibilities under thismemorandum. HEFCE may then ask the governingbody to appoint someone else to report to HEFCEon behalf of the institution. In taking this actionHEFCE will not seek to influence the employmentrelationship between the governing body and thehead of institution. The governing body is clearlyentitled to maintain the head of institution in post.However the governing body would then have todesignate another senior officer as the accountableofficer, and adjust the roles and responsibilities ofthe head of institution accordingly.26. The institution’s accountable officer and/orchair of the governing body may be required toappear before the Public Accounts Committeealongside the chief executive of HEFCE in his roleas accounting officer, on matters relating to grantsto the institution.8 HEFCE 2010/19
27. In the event of a prolonged absence from workor a sudden departure by the accountable officer,the clerk to the institution’s governing body mustensure that HEFCE is made aware immediately ofthe identity of the interim accountable officer.Financial management andsustainability28. Institutions should have a financial strategythat reflects their overall strategic plan, setsappropriate targets and performance indicators, andshows how resources are to be used. To remainsustainable and financially viable they should alsoassess, take and manage risks in a balanced waythat does not overly constrain freedom of action inthe future. Institutions must:• stay solvent• not incur deficits, unless these are covered bydiscretionary reserves. Any deficits not coveredby these reserves must be recovered withinthree years or within a period agreed with us.For this purpose, any pension scheme deficitsincluded on an institution’s balance sheetfollowing implementation of FRS17 should beexcluded from the calculation of reserves.However, institutions should still work towardsimproving any pension scheme deficits.29. We normally expect that an institution willmake a surplus in line with its financial strategy forsustainability, and thus that its discretionaryreserves will grow over time. A series of deficits,even if covered by discretionary reserves, mightcause us concern, as could low levels of liquidity orincreased borrowing. In such cases we would expectto discuss financial performance and strategy withthe institution.30. Institutions must apply the following principleswhen entering into any financial commitments:a. The risks and affordability of any new on- andoff-balance sheet financial commitments mustbe properly considered.b. Any commitments must be consistent with theinstitution’s strategic plan, financial strategyand treasury management policy.c. The source of any repayment of a financialcommitment must be identified and agreed atthe point of entering that commitment.d. Financial commitments for the procurement ofa particular capital asset should not be enteredinto if they involve any proportion of thosecommitments remaining to be met after theexpected useful life of the asset has expired.e. Planned financial commitments must representvalue for money.31. HEFCE is concerned to ensure that anyfinancial commitments entered into by an institutionare affordable and do not leave challenges to itssustainability that will have to be faced in the longterm. An institution must get written consent fromus before it agrees to any new financialcommitments as follows:a. Long-term commitments – where theannualised servicing cost of its total financialcommitments would increase to above 4 percent of total income.b. Short-term financial commitments – wherenegative net cash exceeds 5 per cent of totalincome for more than 35 consecutive days.Annex F sets out the information we need to assessboth types of request, and explains the methods ofcalculating the annualised servicing cost andnegative net cash. When we designate an institutionas ‘at higher risk’ we may vary these twothresholds.32. The two thresholds are not limits, and shouldnot deter an institution from increasing its financialcommitments where appropriate. An institutionshould determine the level of borrowing that is bothaffordable and consistent with its financial strategy.We ask the institution to demonstrate this in anycase presented to us; show that the proposalrepresents good value; and confirm the approval ofits governing body. In responding to requests forconsent we aim to be helpful and pragmatic, takinginto account the circumstances of each proposal.33. As part of ensuring its long-term viability, aninstitution should know the full cost of its activitiesand use this information in making decisions. If itdoes not seek to recover the full cost, this should beHEFCE 2010/19 9
the result of a clear policy set by the governingbody and included in the financial strategy, andshould not put the institution in financial difficulty.We do not expect our funds to subsidise non-publicactivities (see paragraph 36).Other requirements oninstitutions34. We expect institutions to consider how theiractions affect our policy objectives for the HEsector, as set out in our strategic plan. When theyplan a major change in strategy or academicprovision, or consider merging with another body,they should discuss this with us at an early stage.35. Institutions shall subscribe to HESA and theQuality Assurance Agency for Higher Education(QAA), and ensure that their use of JANET andSuperJANET networks conform to acceptablepractice and current legislation.36. Institutions can only use Council funds foractivities eligible for funding under the 1992 Actand other relevant legislation. This conditionapplies where the HEI passes on part of its HEFCEgrant to another legally distinct entity – a‘connected institution’ – for the provision offacilities or learning and teaching, or for research tobe undertaken. In such cases, as set down in Section27 of the Teaching and Higher Education Act 1998,the institution must obtain our consent beforepassing HEFCE funds to the connected institution.Consent is also required where the institution passeson part of its grant (via a franchise or indirectfunding agreement) to an entity that is neither anHEI nor FEC supported from public funds.37. Institutions should manage their estate in asustainable way, in line with an estates strategy andthe requirements of HEFCE’s Capital InvestmentFramework. Institutions should review their currentand expected use of land and buildings, andconsider rationalising and disposing of assets thatare no longer needed. Institutions are also requiredto have carbon management plans in accordancewith guidance in HEFCE 2010/02, and performanceagainst these plans will be a factor in determiningfuture capital allocations.38. For exchequer interests, the institution, havingentered into an agreement with HEFCE effectivefrom 1 August 2006, shall follow the conditions setat Annex G.39. Until April 2011, institutions are subject to thepublic sector duties listed within the Race Relations(Amendment) Act 2000, the DisabilityDiscrimination Act 2005 and the Equality Act2006. These laws impose positive duties on allpublic bodies – including HEIs and HEFCE – topromote race, disability and gender equality ineverything that they do. HEFCE also has a statutoryduty to monitor the HE sector for any adverse anddifferential impact on race, disability and genderequality arising from its policies and actions, but itdoes not have an enforcement role. In April 2011,the integrated public sector Equality Duty will beimplemented, which will place additional duties onall public sector bodies to pay ‘due regard’ to theneeds of all protected groups. These include: age,disability, gender reassignment, marriage and civilpartnership, pregnancy, race, religion or belief, sexor sexual orientation.Accountability and riskassessment40. We expect institutions to have governance andmanagement processes in place that can readilydemonstrate to their public sector funders(including HEFCE) proper control over, andaccountability for, the use of public funds. Thebetter these processes are, the easier it will be forinstitutions to show that they are making properuse of public money.41. As far as possible the accountability processbetween HEFCE and institutions will beconcentrated into an exchange of documents anddialogue during a specific period following the endof the financial year. We will confirm the specificcontent of this exchange each year and consult thesector on any major changes to the process. Ouraim is to minimise our demands on institutions, andas far as possible to rely on data and informationthat they have produced to meet their own needs.10 HEFCE 2010/19
42. Institutions should send us their accountabilityinformation on the dates in December that wespecify each year. We will review this and give eachinstitution a confidential, formal assessment of itsrisk status – see Table 2 of Annex D. For those weconsider to be ‘not at higher risk’ – our experienceto date suggests that this is the vast majority – therewill be no need for further information ordiscussion of accountability until the followingyear’s return, save in the case of an unanticipatedchange in circumstances. Sometimes we will ask formore information to clarify uncertainties.43. When we assess an institution as being athigher risk we must respond appropriately, toprotect the public interest. Our institutionalengagement and support strategy (see Annex D)describes the range of ways in which we mightrespond to help institutions resolve difficulties andmanage risks. We will always discuss our concernswith the institution’s accountable officer, and takehis/her views and actions into account, before weformally make an ‘at higher risk’ designation. Wewill also try to reach agreement on what needs tobe done. When we consider the institution to be nolonger at higher risk, we will write to its governingbody to confirm this.44. Beyond the exchange of accountabilityinformation each year, we welcome the opportunityfor regular and informal discussions withinstitutions about their plans and developments. Webelieve this will help us to work together and reducethe risk of misunderstanding.Revisions to the FinancialMemorandum45. We will make material revisions to thisdocument only after consulting the higher educationsector or its representative bodies, as appropriate.HEFCE 2010/19 11
Annex AMandatory requirements of the Financial Memorandumand Audit Code of Practice1. The following are mandatory requirements ofthe Financial Memorandum and the Audit Code ofPractice (‘the Code’). We will assess compliancewith these.2. The governing body must ensure that theinstitution meets its responsibilities as set out in theFinancial Memorandum. The governing body andaccountable officer must comply with:• the general conditions of grant set out in thisFinancial Memorandum• any special conditions of grant. Save in a casewhere urgent action is required to safeguardpublic funds, special conditions of grant willonly be imposed after HEFCE has consultedthe institution about the conditions.3. The institution must obtain written consent forfinancial commitments, as specified in Annex F.4. The governing body of each higher educationinstitution (HEI) must take reasonable steps toensure that there are sound arrangements for riskmanagement, control and governance, and foreconomy, efficiency and effectiveness (value formoney), within the HEI.5. The governing body and accountable officermust ensure that data submitted to HEFCE complywith relevant published directions.6. Each HEI must have an effective auditcommittee which produces an annual report for thegoverning body and the accountable officer. Theaudit committee annual report must relate to thefinancial year and include any significant issues upto the date of preparing the report which affect theopinion. The audit committee annual report mustinclude the audit committee’s conclusions on theadequacy and effectiveness of:• the HEI’s risk management, control andgovernance arrangements• arrangements for promoting economy,efficiency and effectiveness• the arrangements for the management andquality assurance of data submitted to theHigher Education Statistics Agency, HEFCEand other funding bodies.7. Members of the audit committee must not haveexecutive authority. Members should not also bemembers of a finance committee, unless theinstitution’s governing body has made a cleardecision to allow one audit committee member tosit on both (no more than one member may sit onboth and he or she should not be the chair).8. The audit committee of each HEI, advised whereappropriate by its internal audit service, must satisfyitself that appropriate arrangements are in place topromote economy, efficiency and effectiveness.9. Each HEI must have an effective internal auditfunction, which reports regularly to the auditcommittee and at least annually to the governingbody and the accountable officer. The internal auditannual report must relate to the financial year, andinclude any significant issues up to the date ofpreparing the report which affect the auditor’sopinion. The work of the internal audit service mustcover the whole of the risk management, controland governance arrangements of the HEI.10. The head of the internal audit service musthave direct access to the HEI’s accountable officer,the chair of the audit committee and, if necessary,the chair of the governing body. Internal as well asexternal auditors must also have unrestricted accessto information – including all records, assets,personnel and premises – and be authorised toobtain whatever information and explanations thehead of the internal audit service or the externalauditor considers necessary.11. Internal and external audit services must not beprovided by the same firm or provider.12. Fees paid to external auditors for other servicesmust be disclosed separately in a note in thefinancial statements.13. Subject to legislative constraints, the HEFCEassurance service must have unrestricted access toinformation – including all records, assets,personnel and premises – and can require anyone to12 HEFCE 2010/19
give any explanation which it considers necessary tofulfil its responsibilities. This includes access to anywork of the internal and external auditors, orcorrespondence between internal and externalauditors. When it needs access to external auditwork, the HEFCE assurance service will exchangeletters (where necessary) with both parties to dealwith confidentiality and the terms under whichaccess is given.14. HEIs must not agree to any restriction inexternal auditors’ liability in respect of the externalaudit of their annual financial statements, except asspecified at Annex B, paragraph 79.15. The following information must be provided,according to a timetable which will be notified eachyear:• a signed and approved set of financialstatements to include the auditor’s opinion• a copy of the audit committee’s annual report• a copy of the internal auditor’s annual report• the completed annual assurance return (Annex E)• a copy of the external auditor’s managementletter and the management response.16. The HEI’s accountable officer must report anymaterial adverse change without delay – such as asignificant and immediate threat to the HEI’sfinancial position, significant fraud or majoraccounting breakdown – to all of the following:• the chair of the HEI’s audit committee• the chair of the HEI’s governing body• the HEI’s head of internal audit• the external auditor• the HEFCE chief executive.17. The governing body must inform HEFCE’sassurance service without delay of the removal orresignation of the external or internal auditors.HEFCE 2010/19 13
Annex BAudit Code of PracticePurpose1. The Audit Code of Practice (‘the Code’) sets outour requirements for higher education institutions’(HEIs’) accountability and audit arrangements andthe broad framework in which they should operate.It forms part of the Financial Memorandum, andcompliance with the mandatory elements of theCode is therefore a condition of grant.2. HEFCE’s chief executive is its accounting officer.The chief executive is responsible for ensuring theproper and efficient use of public funds by HEFCE,by HEIs and by others who receive HEFCE funds,and for ensuring that Treasury guidance is observed.The financial memorandum between theDepartment for Business, Innovation and Skills(BIS) and HEFCE requires the issue of an AuditCode of Practice for institutions. This is that Code.Overview3. The Code states how effective accountability andaudit coverage should be achieved. It sets out ourminimum requirements for the reporting of riskmanagement, control and governance arrangements,for internal and external audit arrangements, andthe broad framework in which they should operate.4. The Code applies to the relationship betweenHEFCE and HEIs – and in principle to their relatedcompanies and other bodies which, indirectly,receive HEFCE funding. These include, for instance,entities associated with HEIs such as subsidiarycompanies and charitable funds. These subsidiaryentities are not required to observe the Code indetail, but should pay appropriate regard to it. Wealso fund a small number of connected institutionsthrough HEIs, which are also subject, indirectly, tothe Code. The colleges of the Universities of Oxfordand Cambridge are not funded directly by us butare subject to an agreed audit protocol.5. We also fund and have relationships with anumber of related bodies. These are independentbodies established to assist HEFCE and the highereducation (HE) sector to deliver HE strategy. Eachrelated body is required as a condition of itsfunding with HEFCE to conform to the Code as faras is appropriate and practical.6. We assess institutions’ performance against theCode in two ways. Firstly, every report and returnrequired under the Code, from each institution, isscrutinised on an annual basis by the HEFCEassurance service (HEFCEAS). Where institutionsfail to report as required, this is classed as noncompliancewith conditions of grant. Secondly, eachinstitution is subject to audit visits from HEFCE’sown auditors, and the nature of our audit evolvesover time and is tailored to the circumstances ofeach institution. Our audit normally leads to areport which is publicly available and which hasbeen agreed by the accountable officer on behalf ofthe HEI and its governing body.7. The Code is primarily for use by internal andexternal auditors, HEIs’ senior management,members of the governing body and auditcommittees.Corporate governance8. The corporate governance arrangements of anHEI are the means by which strategy is set andmonitored, the executive is held to account, risksare managed, stewardship and trusteeresponsibilities are discharged, and sustainability isensured. A more complete description of corporategovernance in an HEI can be found in the guide bythe Committee of University Chairs (CUC) – ‘Guidefor members of higher education governing bodiesin the UK’ (HEFCE 2009/14). The CUC Guideincludes a Governance Code of Practice, againstwhich CUC and HEFCE commend institutions toevaluate themselves. The principle should be thatinstitutions ‘comply or explain’ and the outcome ofeach periodic evaluation should be published,ideally in the Corporate Governance Statement orStatement of Internal Control in the publishedfinancial statements.Higher education auditframework9. In accordance with the Financial Memorandum,HEIs must have effective risk management, controland governance arrangements. Other funding bodiesalso have an interest in these control arrangements,including Parliament, BIS, the Skills Funding14 HEFCE 2010/19
Agency, the Student Loan Company (SLC),Research Councils UK, the Department forEmployment and Learning (DEL) in NorthernIreland, and the Training and Development Agencyfor Schools (TDA).10. Each of these bodies makes appropriatearrangements to safeguard its interest. Each has itsown auditors, but in practice there are only twogroups engaged in regular audit investigation of aninstitution’s systems and records – an institution’sinternal and external auditors. This is the same levelof activity that is common in the private sector. Ofthe interested parties, BIS, HEFCE, DEL, TDA andthe Research Councils seek to avoid duplication byrelying on the work of the other bodies’ assurancearrangements whenever possible.Parliament11. Parliament’s interest is to see that public fundsare properly applied and accounted for and usedeconomically, efficiently and effectively byrecipients. The Comptroller and Auditor General(CAG), head of the National Audit Office, is theexternal auditor of HEFCE. The CAG has the rightto inspect the accounts of any HEI that receivesHEFCE grant, and the right to carry out value-formoney(VFM) investigations. The National AuditOffice is selective in its use of inspection rights:much of its audit work is undertaken at HEFCE,and VFM investigations normally involve only asample of institutions at any one time.Department for Business, Innovation andSkills12. Public funds for HE are primarily channelledthrough BIS. The BIS permanent secretary, asprincipal accounting officer, is responsible andaccountable to Parliament. The HEFCE chiefexecutive must be satisfied that proper arrangementsare being made to safeguard public funds. This isachieved through the financial memorandumbetween BIS and HEFCE, which requires HEFCE tohave an audit service and appropriate accountingsystems. The work of HEFCE auditors andinstitutional assurance staff is examined by the BISaudit service, which may observe them at work inHEIs but does not audit HEIs itself.HEFCE13. HEFCE operates an internal audit functionand a separate team that is responsible formonitoring institutions. This team (the HEFCEAS)operates our regulatory framework, undertakesaudit work in institutions and assesses institutionalrisk. In common with the arrangements in HEIs,there is an audit committee to assist the HEFCEchief executive and Board in discharging theiraccountability and audit responsibilities, both inrespect of HEFCE and of HEIs and other entities.14. In the event of any material adverse change inan institution’s circumstances – such as a significantand immediate threat to the HEI’s financialposition, significant fraud or major accountingbreakdown – the accountable officer must inform,without delay, all of the following:• the chair of the HEI’s audit committee• the chair of the HEI’s governing body• the HEI’s head of internal audit• the external auditor• the HEFCE chief executive.15. On receiving any such notification, the chiefexecutive will discuss what response to make withthe HEI’s governing body or accountable officer,including any action to be taken. If a matterrequiring report is discovered by external or internalauditors in the normal course of their work and theaccountable officer refuses to make a report, theauditors must report directly to all of the following:• the chair of the HEI’s audit committee• the chair of the HEI’s governing body• the HEFCE chief executive.This is to ensure that the HEI has taken appropriateaction.16. Below, we provide an indicative list of whatshould be reported to HEFCE. The accountableofficer, in agreement with the governing body, or inurgent cases the chair, may judge that there areother circumstances that warrant notification:• any financial loss or reduction in income orworking capital which is significant enough inHEFCE 2010/19 15
the accountable officer’s judgement tomaterially impact on the financial outturn orthe cash position• any new decision to invest or expend fundswhich in the accountable officer’s judgementwill have a material impact on the forecastposition as reported to HEFCE in the mostrecent annual accountability exercise• any new or changed risks which – in theaccountable officer’s judgement – aresignificant enough to affect the institution’sfuture sustainability• any theft, fraud, loss of charity assets or otherirregularity where the sums of money involvedare, or potentially are:−−−in excess of £25,000 (this figure alignswith reporting requirements for charitiesand we will keep it under review andnotify changes through our annualaccounts direction); orwhere the particulars of the fraud, theft,loss of charity assets or other irregularitymay reveal a systemic weakness ofconcern beyond the institution, or arenovel, unusual or complex; orwhere there is likely to be public interestbecause of the nature of the fraud, theft,loss of charity assets or other irregularity,or the people involved.17. There may be cases of fraud, theft, loss ofcharity assets or other impropriety or irregularity,that fall outside this definition. In these cases or anyothers, HEIs can seek advice or clarification fromthe HEFCEAS. In view of the public interest, HEIsshould normally notify the police of suspected oractual fraud. Where the police are not notified,management should advise the institution’s auditcommittee of the reason.Audit and risk assessment ofHEIs by the HEFCE assuranceserviceRole and scope18. The HEFCEAS operates our regulatoryframework, undertakes audit work in institutionsand assesses institutional risk. It is responsible forevaluating the risk management, control andgovernance arrangements of HEIs and other entitiesfunded by HEFCE, and for giving assurance onthose arrangements to HEFCE’s chief executive. Itwill also provide information and advice to theHEFCE audit committee to enable it to fulfil its rolein advising the HEFCE Board and chief executive.19. All the activities of HEIs are within the remit ofHEFCEAS. HEFCEAS works in accordance with thestandards for internal audit in the GovernmentInternal Audit Standards issued by the Treasury, andguidance from relevant professional auditing andaccountancy bodies. It will consider whether riskmanagement, control and governance arrangementsare adequate to manage risk and to secure propriety,efficiency, economy and effectiveness in all areas. Itwill seek to confirm that management has taken thenecessary steps to achieve these objectives.20. Subject to legislative constraints, HEFCE hasaccess to all records, information and assets of HEIsand other entities, and can require any officer,including members of the governing body, to giveany explanation which we consider necessary tofulfil our responsibilities.21. HEFCE will liaise, whenever appropriate, withthe National Audit Office, the HEI’s internal andexternal auditors (collectively and individually), BIS,TDA, the Scottish Funding Council, the HigherEducation Funding Council for Wales, DEL and anyother appropriate HEFCE officer or relevantorganisation. HEFCE will also liaise with sectorbodies as it seeks to promote good governance,management and auditing. Liaison is pursued bothfor effectiveness and to avoid duplication of effort.16 HEFCE 2010/19
Reporting22. HEFCEAS will report on HEIs’ compliancewith our mandatory requirements and conditions ofgrant to HEFCE’s chief executive and auditcommittee.23. HEFCEAS will, when appropriate, draw theattention of the HEFCE chief executive and auditcommittee to material adverse changes includingsignificant frauds and any major accountingbreakdowns.24. HEFCEAS will submit an annual report oninstitutional risk to HEFCE’s chief executive andaudit committee. This will:• include the HEFCEAS assessment of theadequacy and effectiveness of the riskmanagement, control and governancearrangements within HEIs and other entitiesfunded by HEFCE• provide an opinion on the sector’s achievementof propriety, regularity and value for money inits use of public funds• summarise the risk position of the sector• report on coverage achieved• provide audit performance measures.Ongoing risk assessment25. We expect HEIs to notify us of significantchanges and issues as they arise, not simply materialadverse changes. This will help us to maintain thecurrency of our risk assessments. For example,changes of auditors, of key personnel (such as thefinance director, or university secretary/registrar) orkey systems changes (such as the implementation ofa new finance information system) are potentiallysignificant in our risk assessment.HEFCE audit work in institutions26. HEFCEAS undertakes reviews at institutionswith the objective of determining whether theinstitution’s reports and returns, including thosespecified in the Code, can be relied on. Where this isso, and an institution continues to perform well andsustain itself, HEFCEAS will only need to undertakeits review once in every five-year cycle. The formatof the review is explained in detail in HEFCECircular letter 25/2006.Data assurance27. HEIs are required to supply us with data toinform our allocations of funding generally and inresponse to specific initiatives. To avoid duplicationwe will wherever possible use data that are alreadysupplied through HESA or HESES.28. Within HEFCE, our institutional teamsmonitor the reasonableness of data, and ouranalysts undertake verification, validation andreconciliation work. We also undertake limited,periodic data audits in each institution.Audit committees in HEIsScope29. The governing body of an HEI must ensurethat it is fulfilling its responsibilities for adequateand effective risk management, control andgovernance, and for the economy, efficiency andeffectiveness (or VFM) of the HEI’s activities. Toassist in this, each HEI has appointed an auditcommittee.Operation30. The way an audit committee in an HEI shouldoperate and be constituted is set down in guidancefrom the CUC, published in 2008 (HEFCE2008/06).31. HEFCE’s position is that governing bodies andaudit committees should conduct themselves in linewith the CUC’s principles and practices, and thatwhere they believe they differ in any materialrespects then this should be explained and madepublic. Overall we aim to be content to rely on theaccountability provided by an audit committeefollowing CUC practice and by a governing bodyable to exercise accountability on behalf of externalinvestors. We therefore support the principle of anexternal majority on an HEI governing body – inother words, a majority of members who areexternal and independent, and are not staff orstudents of the university.HEFCE 2010/19 17
32. Audit committee members should not bemembers of an institution’s finance committee or itsequivalent because this would create a potentialconflict of interest when the audit committee isconsidering decisions involving the financecommittee. If an HEI’s governing body determinesthat cross-representation involving one member isessential, this should be the subject of an explicit,recorded resolution – but it should not be an optionfor the chair of either committee.Reporting33. The audit committee must produce an annualreport for the governing body and the accountableofficer. The audit committee annual report mustcover the financial year and include any significantissues up to the date of preparation of the report.The audit committee annual report should normallybe submitted to the governing body before themembers’ responsibility statement in the annualfinancial statements is signed. The internal auditors’annual report and the audit committee report mustbe submitted to HEFCE according to the timetableto be published annually in a circular letter. Thisinforms our institutional risk assessment.34. The audit committee annual report mustinclude the committee’s conclusions on theadequacy and effectiveness of the HEI’sarrangements for the following:• risk management, control and governance• economy, efficiency and effectiveness (value formoney)• management and quality assurance of datasubmitted to HESA and to HEFCE and otherfunding bodies. This latter assurance is toensure adequate governance oversight of thesystems used to generate funding data by theHEI, since poor data may represent asignificant financial risk for HEIs that auditcommittees need to consider.35. The audit committee opinions should be basedon the information presented to the committee. Thedata management assurance does not require auditcommittees to verify data: that is the responsibility ofmanagement. The audit committee’s interest shouldbe in the management and quality assurance of data.36. The audit committee annual report should alsorecord the work of the committee, and consider thefollowing:• the external auditors’ management letter• the internal auditors’ annual report• value for money work• any HEFCEAS reports or other relevantevaluations.Internal and external auditors inHE: general principlesDuties37. Internal and external auditors should adhere totheir professional standards. This includes takingcare to avoid personal and professional conflicts ofinterest, being clear about their reliance on eachother’s work and acting with due care. The samefirm may not provide both external and internalaudit services to a HEI.Internal audit arrangements in HEIs38. Each HEI is required by its FinancialMemorandum with HEFCE to have an internalaudit function. Internal audit should follow a riskbasedapproach.39. Each institution will manage its own risks, and inturn each institution’s internal auditor will undertakea programme of risk-based work. It is for theinstitution to make judgements on this work: HEFCEcannot impose particular areas for review on anyinstitution’s internal auditors save in the exceptionalindividual cases set out in our support strategy (seeAnnex D). However, on the basis of experience fromseveral serious cases over many years, HEFCEbelieves strongly that internal financial control shouldfactor in internal audit risk assessment every year.This may or may not lead to specific audit reviews ina given year, but the governing body and accountableofficer should be content that – based on audit riskassessment, direct audit work or other forms ofreview such as control risk self-assessment (CRSA) –assurance about financial control is always available.From time to time, we may draw other areas of riskto the attention of institutions with a recommendationthat these be factored into internal audit planning.18 HEFCE 2010/19
40. HEFCE guidance on internal audit practice inHEIs endorses the approach set out in the Code ofEthics and International Standards (January 2009)1of the Institute of Internal Auditors (IIA).41. Within the HE sector, the prime responsibilityof the internal audit service is to provide thegoverning body, the accountable officer and theother managers of the HEI with assurance on theadequacy and effectiveness of risk management,control and governance arrangements.Responsibility for these arrangements remains fullywith management, who should recognise thatinternal audit can only provide ‘reasonableassurance’ and cannot provide any guaranteeagainst material errors, loss or fraud. Internal auditalso plays a valuable role in helping management toimprove risk management, control and governance,thereby reducing the effects of any material adverserisks faced by the HEI.Operation42. An HEI must ensure that it has effective riskmanagement, control and governance arrangements.These help to ensure that:a. The HEI’s objectives are achieved as far aspossible and associated risks are managed.b. The economic, efficient and effective use ofresources is promoted.c. There is adherence to management’s policies,directives and established procedures, andcompliance with any relevant laws orregulations including charities legislation.d. The HEI’s assets and interests are safeguarded –particularly from losses arising from fraud,irregularity or corruption.e. As far as reasonably practicable, the integrityand reliability of accounting records, data andother information is maintained. This includesdata supplied to HESA, HEFCE and otherfunding bodies.43. Accordingly, the internal audit service mustconsider the whole of the HEI’s risk management,control and governance arrangements, including allits operations, resources, staff, services andresponsibilities for other bodies.44. Internal auditors may carry out additionalwork at the request of management, includingconsultancy and investigations, provided such workdoes not compromise the objectivity of the auditservice or the achievement of the audit plan.Accordingly, each HEI’s audit committee shouldsatisfy itself that the objectivity of the internal auditservice has not been affected by the extent andnature of other work carried out. Internal auditservices should not have any managementresponsibilities other than for internal audit.45. Internal audit should be seen to have sufficientstatus, respect and support within the HEI. To beeffective, the head of internal audit – or equivalentwhere the service is provided on a contract basis –must have direct access to the HEI’s accountableofficer, to the governing body (normally through thechair of the audit committee) and, if necessary, tothe chair of the governing body. Whether providedinternally or externally, day-to-day line managementand overall reporting arrangements for the internalaudit service should be such as to preserve itsobjectivity by avoiding concentration ofresponsibility and reporting with any one seniorperson within the HEI. Internal auditors must alsohave unrestricted access to all records, assets,personnel and premises, and be authorised to obtainwhatever information and explanations areconsidered necessary by the head of the internalaudit service.Reporting46. The reporting requirements for any internalaudit service are discussed in standards published bythe IIA. It is a requirement of the Code that theinternal audit service produce an annual report ofits activities. The internal audit annual report mustrelate to the financial year and include anysignificant issues, up to the date of preparing thereport, which affect the opinion. This should beaddressed to the governing body and the1 Available at www.theiia.org under Standards & Practices/Code of Ethics.HEFCE 2010/19 19
accountable officer, and should be considered by theaudit committee. The audit committee may forwardthe report to the governing body with its ownreport. The report must be submitted to HEFCEafter it has been considered by the HEI’s auditcommittee.47. The internal audit annual report should includethe internal auditor’s opinion on the adequacy andeffectiveness of the HEI’s arrangements for:• risk management, control and governance• economy, efficiency and effectiveness.48. This opinion should be placed into its propercontext: that is, the work undertaken has beenbased on the agreed audit strategy and on the areasreviewed in the year, as well as incorporatingknowledge of areas audited in previous years(including from a previous auditor). Internal auditperformance measures should be provided,including stating coverage achieved against theoriginal audit plan. It should also draw attention toany significant audit recommendations which theinternal audit service considers have not receivedadequate management attention.Provision of service49. There are a variety of ways to acquire aninternal audit service, and we do not favour oneapproach above the others. Each HEI, advised by itsaudit committee, should establish which is the mostsuitable and cost-effective way of obtaining internalaudit services. However, every five years at least, itshould consider market testing internal auditservices where those services are provided byoutside contractors, since this provides a powerfulincentive to maintain quality and cost-effectiveness.Where internal audit is an in-house service, thereshould be periodic consideration of whether thiscontinues to be the appropriate type of provisionfor the institution.50. In all cases the audit committee should monitorinternal audit effectiveness. In addition, where theinternal audit service is provided in-house, the auditcommittee chair should be consulted on the annualperformance appraisal of the head of internal audit.This appraisal process is the responsibility ofmanagement.Removal or resignation of auditors51. Subject to normal staffing arrangements (for‘in-house’ internal auditors) and any contractualarrangements in place, only the governing body (orthe audit committee where delegated authorityexists) may pass a resolution to remove the internalauditors before the end of their term of office ifserious shortcomings are identified.52. Where internal auditors cease to hold office forany reason, they should provide the governing bodywith either a statement of any circumstancesconnected with their removal which they considershould be brought to the governing body’sattention, or a statement that there are no suchcircumstances. The internal auditors may alsorequest an extraordinary general meeting of thegoverning body to consider the statement. Any suchstatements should also be sent to the HEFCEAS bythe HEI – or, if it fails to do so, by the outgoinginternal auditors.53. The governing body must inform HEFCEwithout delay of the removal or resignation of theinternal auditors and of the reasons.Restriction of auditors’ liability54. Where the internal audit service is providedthrough a contractual arrangement with an externalprovider, the provider may ask the HEI to agree to arestriction in the internal auditors’ liability arisingfrom any default by the auditors. Normally suchliability should be without limit. However, HEIs maynegotiate a restriction in liability so long as thedecision is made on an informed basis and theliability remains at such a level as to providereasonable recourse to the HEI. The governing body,through the audit committee, should be specificallynotified of any request for a liability restriction.Fraud and corruption55. Internal auditors should assess the adequacy ofthe arrangements to prevent and detect irregularities,fraud and corruption. However, the primaryresponsibility for preventing and detecting corruption,fraud and irregularities rests with management, whoshould institute adequate systems of internal control,including clear objectives, segregation of duties andproper authorisation procedures.20 HEFCE 2010/19
56. The work of the internal audit service, inreviewing the adequacy and effectiveness of theinternal control system, should help management toprevent and detect fraud. The internal audit serviceshould ensure that it has the right to review,appraise and report on the extent to which assetsand interests are safeguarded from fraud. Wheninternal auditors suspect fraud, or are carrying outa fraud investigation, it is important to safeguardevidence. They should assess the extent ofcomplicity to minimise the risk of information beingprovided to those involved, and the risk ofmisleading information being obtained from them.57. The HEI should ensure that the internal auditoris informed, as soon as possible, of all attempted,suspected or actual fraud or irregularity. Theinternal auditor should consider any implications inrelation to the internal control system, and makerecommendations to management, as appropriate,to strengthen the systems and controls.External audit arrangements inHEIsIntroduction58. Institutions in the sector are expected to followthe Statement of Recommended Practice (SORP) onAccounting in Further & Higher Educationpublished by Universities UK, and the accountsdirection published as a circular letter every year byHEFCE. The 2007 SORP introduced a requirementfor an operating and financial review, andinstitutions are encouraged to use this as anopportunity to demonstrate their effectiveness,accountability and performance.59. The primary role of external auditors is to reporton the financial statements of HEIs and to carry outwhatever examination of the statements, and theirunderlying records and control systems, is necessaryto reach their opinion on the statements. Their reportshould also state whether, in all material respects,recurrent and specific grants from HEFCE (and otherbodies and restricted funds where appropriate) havebeen properly applied for the purposes provided, andin accordance with the institution’s FinancialMemorandum with HEFCE; in other words, that theconditions of grant have been met.60. We accept that HEFCE is not the direct clientof the external auditor and that the auditor doesnot have a duty of care to us. However, we requirethat external audit engagements in the sector meetthe requirements of the Code, and that this isreflected in the external audit engagement letter.Qualification of auditors61. The qualifications required for externalauditors of higher education corporations are setout in paragraph 18(5) of Schedule 7 of theEducation Reform Act of 1988. For other HEIs, therequirements are the same as under the CompaniesActs. Auditors should be registered with one of theappropriate professional bodies, and conform tothat body’s standards.Selection criteria and procedures62. The governing body is responsible forappointing external auditors, although it willusually delegate the detail of the process to theaudit committee. Before receiving proposals, theHEI should determine selection criteria, proceduresand the frequency of external testing.63. The duties of HEIs and external auditorsshould be clearly presented in the agreed terms ofreference.Additional services64. HEIs may ask external auditors to provideservices beyond the scope of the audit of financialstatements, including special investigation work,taxation compliance and advice, consultancy andVFM reviews. Generally, it is a matter for HEIs andauditors to agree precise requirements, although theaudit committee must be informed of all significantfacts and matters that have a bearing on theauditors’ objectivity and independence related to theprovision of non-audit services, including thesafeguards put in place. Any additional work mustnot impair the independence of the audit function,and so should normally be the responsibility ofdifferent staff within the firm of auditors.65. The audit committee has a key role to playwhere the auditors supply a substantial amount ofnon-audit services. The committee must keep thenature and extent of such services under review,HEFCE 2010/19 21
seeking to balance independence and objectivitywith the HEI’s needs.66. In order to help judge the relationship betweenthe HEI and its external auditors, the HEI mustdisclose separately, by way of a note to its financialstatements, the fees paid to its external auditors forother services. Each HEI’s audit committee mustreview both the level of fees incurred and the futureplanned work, and satisfy itself that the extent andnature of other work does not affect the objectivityof the external audit.Letter of representation67. In order to undertake their work, externalauditors seek from those charged with governance aletter of representation providing details of anymaterial changes that need to be brought to theauditors’ attention to enable them to complete theirwork in an effective manner. In addition to therequirements of International Standards on Auditing(UK & Ireland), HEFCE recommends that auditorssatisfy themselves that management has provided allnecessary evidence to confirm any possiblesignificant adjustments to past or future HEFCEfunding.Management letter68. External auditors should issue a report to thosecharged with governance – normally referred to as amanagement letter – which highlights accountingissues and control deficiencies arising from theaudit. The HEI’s management should providewritten responses to any recommendations made orissues raised. The Code is not prescriptive about theformat or title of a management letter, but it shouldenable the HEFCEAS to see what observations havebeen made about the internal control system andhow management has responded.69. External auditors should also indicate in themanagement letter whether, or to what extent, theyare content to rely on the work of the internalauditors in support of external audit work. Thesestatements will be based on work which shouldalready have been carried out for the purpose ofexternal audit. They provide information which isuseful to the audit committee and to HEFCE indetermining institutional risk assessments.70. The letter, with management responses, must bemade available to the HEI’s audit committee in timeto inform the committee’s annual report. HEIs mustsend a copy of the final management letter(incorporating management responses) to theHEFCEAS according to the timetable publishedannually in a circular letter. External auditorsshould attend audit committee and/or financecommittee meetings at which the audited financialstatements are discussed, and attend governing bodyand other meetings when appropriate.Audit report71. The external auditors shall report whether inall material respects:a. The financial statements give a true and fairview of the state of the HEI’s affairs, and of itsincome and expenditure, recognised gains andlosses, and statement of cash flow for the year.They should take into account relevantstatutory and other mandatory disclosure andaccounting requirements, and HEFCErequirements.b. The financial statements have been properlyprepared in accordance with the Statement ofRecommended Practice (SORP) on Accountingin Further & Higher Education, and sections495 and 496 of the Companies Act 2006(where the HEI is incorporated under theCompanies Act), and/or other legislative orregulatory requirements.c. Funds from whatever source administered bythe institution for specific purposes have beenproperly applied to those purposes and, ifrelevant, managed in accordance with relevantlegislation.d. Funds provided by HEFCE have been appliedin accordance with the Financial Memorandumand any other terms and conditions attached tothem. In particular, auditors should have regardto the specific requirements of the FinancialMemorandum, such as compliance with theshort-term and long-term borrowingconditions.72. HEFCE publishes as a circular letter an annualaccounts direction, and institutions and their22 HEFCE 2010/19
external auditors are required to conform to it. Theaccounts direction summarises and updatesHEFCE’s financial reporting requirements.73. External auditors have a duty to consider theStatement of Internal Control with the annualfinancial statements and to comment by exception ifthe statement is inconsistent with their knowledgeof the HEI. It is for each HEI to decide whether itwishes its external auditors to do more than thisrequired minimum. Each HEI needs to ensure thatprocesses are in place – including work by internalauditors, external auditors and management – toprovide assurance on the effectiveness of thearrangements underpinning the Statement ofInternal Control. External auditors may reportprivately to the governing body (through the auditcommittee) on the results of their work on theStatement of Internal Control, or may makereference to this work in the financial statements,either in their audit opinion report or through aseparate report.Reappointment of auditors74. HEIs should reappoint external auditorsformally each year. The audit committee shouldassess the external auditors’ work each year toensure that it is of a sufficiently high standard andrepresents value for money. The committee shouldthen make a recommendation to the governing bodyregarding the reappointment of the externalauditors. Performance measures could be used aspart of the assessment. Provided that the externalauditors’ performance is satisfactory, it will not benecessary to repeat the full selection process eachyear. However, full market testing should beundertaken at least every seven years. One partnerin the firm is normally responsible for theinstitution’s audit; he or she should not hold thisposition for more than seven consecutive years.Removal or resignation of auditors75. The governing body may pass a resolution toremove the external auditors before the end of theirterm of office if serious shortcomings are identified.76. External auditors who have resigned or beenremoved from office for whatever reason should beentitled to attend, and make representations to, thegeneral meeting of the governing body at whichtheir term of office would have expired, or at whichit is proposed to fill the vacancy caused by theresignation or removal. They are entitled to receivenotices of, or other communications relating to, thatmeeting and to be heard on any part of the businesswhich concerns them as former auditors of the HEI.77. As with internal auditors the governing body isresponsible for advising HEFCE where externalauditors cease to hold office, and the reasons forthis.78. In deciding whether or not to accept theappointment, anyone proposing to take up theoffice of external auditor should obtain the HEI’spermission to communicate with the outgoingauditors. Outgoing auditors should also obtainpermission from the HEI to discuss their affairsfreely with the proposed auditors, and shoulddisclose all information required by the proposedauditors that is relevant to the appointment. Theseprovisions are analogous to those in the Code ofEthics of the Institute of Chartered Accountants inEngland and Wales.Restriction of auditors’ liability79. HEIs must not agree to any restriction inexternal auditors’ liability in respect of the externalaudit of their annual financial statements, unless aliability limitation agreement has been entered intounder the terms of the Limited LiabilityPartnerships Act 2000 and the Companies Act 2006or, in the case of HEIs that are not incorporatedunder the Companies Act 2006, as if the relevantprovisions of that Act applied to HEIs.80. For other types of work performed by theexternal auditors, the provider may ask the HEI toagree to a restriction in the auditors’ liability arisingfrom any default by the auditors. Normally, suchliability should be without limit. However, HEIsmay negotiate a restriction in liability if the decisionis made on an informed basis and the liabilityremains at such a level as to provide reasonablerecourse to the HEI. The governing body, throughthe audit committee, should be notified of anyliability restriction agreed.HEFCE 2010/19 23
HEFCE access to auditors81. HEFCE may wish to meet with an HEI’sexternal auditors, particularly in connection with avisit to the HEI. The HEI should not limit access inany way. Formal discussion should normally bearranged through the HEI’s accountable officer orrepresentative. HEFCE will exchange letters wherenecessary with both parties to deal withconfidentiality and the terms under which access isgiven.24 HEFCE 2010/19
Annex CAllocating and paying funds1. Each year we determine how much money toallocate to each institution. In doing so we maydistinguish between recurrent and capital funds, andbetween formula capital and project capital.2. Higher education institutions (HEIs) should usethis money only for the proper purposes, as definedin the Further and Higher Education Act 1992 orother relevant legislation.3. The above condition applies if an HEI passes onmoney to another body or organisation to provideeducation, research or related activities. The HEIremains responsible for controlling such activities.There should be a written agreement with the otherbody covering financial accountability and qualityassurance. However, this is not necessary if theother body is an HEI or HEFCE agrees to thearrangement.4. Sometimes we pay funds to an HEI or furthereducation college (FEC) as the lead institution for aconsortium of universities and colleges. In suchcases, there should be a consortium agreementsetting out how the money is passed on to theconsortium members. Guiding principles foragreements are published in HEFCE 00/54.5. An institution must use specific or capitalfunding for those purposes only. If it uses them forother purposes, it must let us know as soon as itbecomes aware of the fact.9. Our capital grants are administered through ourCapital Investment Framework. Institutions thatmeet the framework requirements will havediscretion over the use of capital funds in line withtheir estates strategies. We will continue to requireother institutions to send us details of capitalprogrammes and projects to which we maycontribute costs, in line with criteria we set. We willset out conditions for such grants and agree apayment profile with the institution. All institutionsare expected to work towards satisfying therequirements of the Capital Investment Framework.10. We will require an institution to repay part orall of a grant payment if it does not comply withthe conditions we attach to the grant or if it is overfunded.This might arise from our audit andreconciliation work. We may reduce or withdrawfunding from an HEI or FEC under the terms of ourunsatisfactory quality policy (HEFCE 2009/31). Incases where we require repayment we may chargeinterest, at 2 per cent above the Bank of Englandbase rate, for the period before it repays the fundingto us.11. If we overpay grant as a result of usingestimated data, we will recover the amountoverpaid, plus interest, as set out in the previousparagraph.6. We will tell institutions their allocation offormula funds as soon as we can in advance of theacademic year to which they relate: normally by31 March. We will normally pay such funds inmonthly instalments. The profile of payments willtake into account the expected needs of the sectoras a whole and the receipt of tuition fees fromstudents and the Student Loans Company.7. We will pay formula funding for widening accessand improving retention only where institutionshave sent us widening participation strategies andaction plans that we find acceptable.8. We will consider requests from individualinstitutions to alter the profile of payments,provided that such payments are not in advance ofthe institution’s need to spend the money.HEFCE 2010/19 25
Annex DInstitutional engagement and support strategyIntroduction1. This strategy sets out how we will engage withand support higher education institutions (HEIs)and our related bodies (RBs) on matters relating toperformance, accountability and risk assessment. Italso describes what will happen when, as a result ofour assessment, we find there to be significant riskseither to the organisation itself or to HEFCE’sfunctions or interests. Our risk assessmentmethodology is summarised in Table 2. The strategyapplies to our work as both funder and principalregulator.2. The principles underlying our institutionalengagement and support strategy are that we will:• protect the interests of the public and thetaxpayer• respect the independence of HEIs and theformal status of each related body: theoperation of our engagement and supportstrategy underwrites the independence ofinstitutions when they are not at higher risk• maintain an open dialogue on matters ofmutual interest• seek to intervene only when necessary but wewill do so vigorously, using the full extent ofour powers, when we judge that an institution’smanagement and governors are not effectivelyaddressing risks to public funds and theinterests of students• be open with the HEI or RB in our riskassessment and requirements and, if warrantedon public interest grounds, disclose our riskassessments publicly• ensure our involvement is proportionate to therisks• end our enhanced involvement as soon aspossible.3. In broad terms there are three levels at whichHEFCE may engage with institutions:• normal contact• focused dialogue (in cases where we aresupporting an institution’s change ordevelopment or where we perceive there to bemedium-term risks which, if not addressed, willput the institution at higher risk)• support strategy (for institutions at higher riskor institutions which will be at higher risk ifdecisive action is not taken).Normal contact4. As part of our routine engagement withinstitutions and RBs we will want to understandtheir mission, strategy and operational plans. Thiswill help us to make appropriate responses to theneeds of the institution and the HE sector, and togain assurance about matters that affect the deliveryof our own objectives. There will often be a formalvisit by the HEFCE regional team to the institutionin each year, and in the context of a more frequentexchange of information and views. It is also part ofour normal contact to discuss an institution’saccountability returns and give feedback, as part ofthe annual accountability returns exercise.Focused dialogue5. There are occasions when it is to the advantageof both HEFCE and institutions to explore issues inmore detail. For example, an institution may wishto secure our support for particular plans, and wewill want to understand how best to provide help tomeet its development needs and fit with our widerobjectives for the sector. Likewise, we may wish todiscuss with an institution whether there areopportunities to improve its performance or workcollaboratively with others. There will also be caseswhere an institution’s risks are increasing because ofdevelopments in its market position, itsperformance or its internal control arrangements;HEFCE will seek to engage at such times to try andensure that the risks are appropriately addressed.Support strategy6. We have a risk assessment system covering allinstitutions and RBs. This draws on the informationwe routinely collect through the annualaccountability returns exercise and on otherinformation such as research and teaching qualityassessments. Sometimes we will ask for moreinformation to clarify our understanding. There arecurrently two risk categories: ‘not at higher risk’26 HEFCE 2010/19
(the vast majority of HEIs at any time) and ‘athigher risk’ (for a small number of institutions).7. Through these annual returns or our regularcontact with an institution or RB, there may be issuesthat require further discussion. All institutions facebusiness and operating risks. The issue is thereforeabout managing risk; putting in place systems toidentify, mitigate and report on risk. In many cases,as a result of further discussions, we will concludequickly that there is no cause for concern.8. When we have major concerns we need tointervene to protect the public interest. We willfirstly discuss these issues with senior management,specifically the accountable officer (of an HEI) orchief executive (of an RB). We will seek a commonunderstanding of the issues, clarify what actionshave already been taken or are planned, and ifnecessary then agree an appropriate supportstrategy. Table 1 sets out the range of possibleactions, though sometimes we will agree a differentapproach with an HEI or RB.9. The HEFCE associate director responsible fordealings with the HEI or RB will lead our supportactivity, but a relevant senior manager – the HEFCEregional consultant, relationship manager (in thecase of an RB) or assurance consultant – willmanage the day-to-day engagement. In exceptionalcases, our chief executive will become involved. Allcases will be overseen by our audit committee andreported to the HEFCE Board.10. If an institution or RB fails to address itsproblems to our satisfaction, it might be in thepublic interest for us to disclose our risk assessment(see paragraph 10 of the main text). We expect thisto be a rare occurrence, because in our experienceinstitutions generally do take appropriate action.Table 1 HEFCE support strategy for HEIs and related bodies ‘at higher risk’Possible HEFCE actionsOverallWe may require institutions to make changes as conditions of grant if we feel that risks to our funding and the interests ofstudents and the public are not being addressed. We will only do so after due consideration and consultation, and only onthe basis of appropriate advice. Thus it will always be our intention to make only reasonable demands of institutions. Ifinstitutions do not comply with conditions of grant we will take steps to enforce compliance or withhold funds.In addition to the actions below we will consider any other action that we believe is necessary to support institutions atrisk and protect the interests of the public and the taxpayer.At governor and senior manager level we:• Will engage with senior management, including the accountable officer.• Will assess the accountable officer’s compliance with the Financial Memorandum, including the requirement to haveeffective management and quality assurance arrangements over data supplied to the Higher Education StatisticsAgency, HEFCE and other funding bodies.• Will inform the governing body of our change in risk assessment and seek commitments to improvement. We willnotify other public funders, as appropriate, of any ‘at higher risk’ assessment, and exceptionally we will make such anassessment public at any time where we consider it to be the public interest to do so.• Will engage directly with the chair of the board and/or chair of the audit committee.• Will engage with the whole governing body and, if necessary, take steps to ensure improvements are made togovernance arrangements.HEFCE 2010/19 27
• May require observer status at governing body or audit committee meetings to enable us to assess whether ourspecific concerns are being addressed. This could be for individual meetings or over a period of time. Our observer willalways be a senior HEFCE officer.• May request the appointment of interim managers.Regarding information and audit we may:• Require or commission additional information, reports and data relating to the risks.• Require that information and reports be audited.• Request changes to internal or external audit arrangements.• Undertake or commission audit investigations.Regarding planning and strategy we may:• Require or commission a recovery or action plan.• Discuss possible changes to strategic plans and market positioning.• Explore collaborative opportunities with other institutions.Regarding funding we may:• Re-profile grant to assist an institution that has a cash flow difficulty.• Consider the use or withdrawal of special funding.• Attach special conditions to grant.• Reduce or withdraw funding.• Use our own estimates of data where we are not satisfied that information from the institution can be relied on.As risks decline we will:• Inform the institution (and others who may have been notified of our risk assessment) about changes in our riskassessment.• Remove special conditions of grant and other requirements.28 HEFCE 2010/19
Table 2 HEFCE institutional risk systemIntroductionHEFCE’s management of risk obliges it to assess the risk to public funds or the activities provided from those funds posedby institutions. We maintain an assessment of each HEI, which focuses on the three areas of risk identified in paragraph11 of the Financial Memorandum:• institutional sustainability• value for money, propriety or regularity• risk management, control or governance.Sources of informationWe have a number of mechanisms and sources for enabling us to assess risk, including:a. The annual accountability process in which institutions submit a range of information and returns relating to financialperformance and forecasts, student numbers, the use of funds and risk management, control and governance.b. Our own institutional audit processes, including data audits and cyclical assurance visits, which are designed tocomplement institutions’ accountability returns.c. The continuing dialogue that we have with each institution about their changing priorities and strategies and theirreporting of adverse developments.d. Information from other sources including public bodies that might potentially impact on our concerns withsustainability, among other issues. For example, we have memoranda of understanding with other funders of HEIs thatcommit us, on a confidential basis, to share information which could have a bearing on each others’ assessments ofthe risk to funds.e. Indicators that we do not monitor systematically for the purpose of institutional risk but which, at times and in specificinstitutional cases, could have a bearing on our risk assessments. For example, quality assurance judgements, anyimplications under our policy for addressing unsatisfactory quality (HEFCE 2009/31), or National Student Surveyoutcomes.f. Information directly supplied by institutions, for example concerning material adverse changes to their circumstances.g. Information disclosed to us through public interest disclosures but only when substantiated by us in dialogue with theinstitutions concerned.h. Other sources of publicly available data.HEFCE 2010/19 29
Our risk assessmentOur assessment of the risk to financial sustainability is based on historical (two years) and forecast (four years) of financialinformation supported by a narrative commentary. A number of indicators are employed as set out below. We perform thisassessment once a year for every HEI and as many times as necessary during the year for institutions ‘at higher risk’ andthose in danger of becoming at higher risk. We have internal benchmarks for each of these indicators which help us toflag concern. We also try to look beyond the snapshot position which the indicators represent to an institution’s trendsand how its performance compares with the sector and its peers. We feed back key parts of our financial assessment toeach institution in our annual risk letter. The current indicators are:• historical cost surplus as percentage of total income• cash flow from operations as a percentage of total income• liquidity expressed in days• affordability of borrowing (as indicated by the level of annual servicing costs of borrowings, in line with our consentprocedure for financial commitments)• discretionary reserves as percentage of total income• staff costs as percentage of total costs.We develop and supplement these indicators over time and in response to individual cases.Our assessment of risk relating to the use of public funds is concerned with all public funds being used for the purposesintended by Parliament (regularity), fraud and impropriety being prevented or dealt with effectively, and value for money(economy, efficiency and effectiveness) being pursued in the application of those funds. We do not audit these mattersdirectly ourselves but derive information for our risk assessment from these sources:a. The annual submission by HEIs of the reports of the governing body, audit committee, accountable officer and internaland external auditor.b. Information and evidence from institutions themselves and other organisations and sources that confirms any misuseof funds on a material scale. From time to time we may receive information through these routes relating to anyaspects of an institution’s operations or provision that could cause us to reconsider our risk assessment. We wouldmake such a judgement on a case-by-case basis in dialogue with the institution concerned.Our assessment of institutional risk management, control and governance is concerned with ensuring that public fundsare being administered by well-run corporations. In addition to information on finances and the use of funds, our own dataand assurance audits enable us to corroborate institutional assurances. Overall, the regular sources of information for thisrisk assessment include:• the annual accountability returns including the governance and accountable officers’ assurances• the outputs of the institution’s internal and external auditors• information from other public bodies• HEFCE’s own audit work.30 HEFCE 2010/19
Risk notificationThe work undertaken by HEFCE, augmented by information from other sources, enables us to make a single annual riskassessment, normally in March. For the majority of institutions this results in a letter from the HEFCE chief executiveadvising that in HEFCE’s judgement the institution is not at higher risk. We ask that all our risk letters be communicated tothe governing body.In some cases, the HEFCE assessment letter notifying that an institution is not at higher risk will be qualified by commentsalerting the institution to concerns we have that need to be addressed and which, in some cases, if not addressed, maylead to a worsening of the institution’s risk status. The comments can include a range of issues including financialperformance, strategic challenges and technical matters of accountability. Some of these matters are more serious thanothers. We will endeavour in such cases to explain the issues fully and we expect that our concerns will be consideredand dealt with by the institution.Institutions at higher riskIn a small number of cases, HEFCE’s judgement will be that an institution is at higher risk. This assessment is most likelyto be made for financial reasons. Whatever the reason for the judgement, the process of making and communicating thejudgement is very thorough and follows the following stages:a. The initial assessment will be made by a member of the HEFCE assurance service. This team is made up ofexperienced, qualified accountants, working to an established methodology that is subject to managerial qualitycontrol and periodic internal audit. The assessment will be made in consultation with the relevant HEFCE associatedirector who will maintain contact with the head of institution at this early stage.b. The initial assessment will be developed in conjunction with other colleagues including those who have leadresponsibility for institutional relations – HEFCE associate directors and regional consultants. A dialogue will take placewith the institution about our intention and the reasons behind it. The institution will have opportunities to supply newinformation that could materially affect our judgement and we will reconsider our assessment in such a case.c. The assessment will normally be finalised at a meeting of HEFCE’s institutional risk review group, an internal forum thatinterrogates and scrutinises institutional risk work and ensures the application of consistent standards andjudgements. This group, chaired by HEFCE’s deputy chief executive, makes recommendations on risk status to thechief executive.d. The chief executive will then make the risk judgement, possibly after seeking further information and advice.e. Any changes of risk status are reported to HEFCE’s audit committee and Board. At this stage a draft risk letter will beshared with the head of institution and the chair of the governing body. Every effort will be made to ensure that thetext, the circumstances discussed in the letter, and the action plan for improvement are agreed by the institution,including its governing body.f. At the final stage the letter will be sent by the HEFCE chief executive to the head of institution and the chair, along withour request that it be shared with the institution’s board.g. From this point onward, until the risk status improves, the institutional relationship will be managed by the relevantHEFCE associate director under the terms of our support strategy.h. HEFCE will not make public the names of institutions that we consider to be at higher risk until three years haveelapsed since that designation. This period is based on advice from the Information Commissioner. HEFCE will departfrom this practice and will make public the identity of an institution at risk in exceptional cases, following a dialoguewith that institution in line with the obligations on us under the Freedom of Information Act. This is likely to be when theinstitution’s position as a going concern in the short term is under threat.HEFCE 2010/19 31
Annex EModel annual assurance return from institutionsThis return is to be submitted as part of the annualaccountability returns exercise, the timetable forwhich will be specified annually in a circular letter.The purpose of the return is to confirm that theinstitution has met its obligations to HEFCE underthe Financial Memorandum. The return alsoconfirms that the institution is complying with itsduties as a charity and thus it enables HEFCE tofulfil its responsibility as principal regulator.The return is in two parts.• part 1 should be signed by the accountableofficer of all HEIs• part 2 is not required from HEIs that are eithernot a charity or are registered with and make anannual return directly to the CharityCommission. For all other HEIs, part 2 shouldbe signed by the accountable officer, unless he orshe is not a trustee, in which case it should besigned by an appropriately authorised trustee.This means that the return should normally havebeen approved by the governing body.32 HEFCE 2010/19
InstitutionYear endedPart 1Can you confirm that in this period the institution hasmet its responsibilities to HEFCE (conditions of grant)as set out in the Financial Memorandum?Have there been any changes of senior officer in theperiod that have not been notified to HEFCE,including the chairs of the governing body and auditcommittee and the heads of finance and internalaudit?Have there been any material adverse changes thatshould have been notified during the period that nowneed to be brought to our attention in line withparagraph 18 and Annex B, paragraphs 14-17, of theFinancial Memorandum? If so, please provide details.This is to confirm that the data and annual accountability returns submitted to HEFCE conform to the requirements ofthe Financial Memorandum and published guidance. The data have been subject to effective oversight andmanagement review. Quality assurance has been provided to the audit committee, which in turn has been able toprovide assurance to the governing body and myself as accountable officer.Signed …………………………………………….... Print name …………………………….....….........................Date………………………………………………Part 2I confirm that, in all material respects, the institution has conducted its affairs during the year in accordance with itsstatus as a charity.Apart from material adverse changes (see Part 1), the institution has either:• reported any serious incidents (as defined in Annex B, paragraphs 14-17 and Annex H, paragraphs 8-11); or• now attaches a report of serious incidents not previously reported.Signed as a trustee on behalf of all of the trustees:Signed …………………………………………….... Print name …………………………….....….........................Date………………………………………………HEFCE 2010/19 33
Annex FConsent for financial commitmentsIntroduction1. An institution must get written consent from usbefore it agrees to any new financial commitmentsas follows:a. Long-term commitments – where theannualised servicing cost (ASC) of its totalfinancial commitments would increase to above4 per cent of total income.b. Short-term financial commitments – wherenegative net cash exceeds 5 per cent of totalincome for more than 35 consecutive days.c. At higher risk – where institutions aredesignated by us as at higher risk we may varythe thresholds set out above.DefinitionsTotal income2. Total income is as reported in the latest auditedfinancial statements, or the estimated amount forthe current year if that is lower.Short-term commitments3. ‘Negative net cash’ is determined on a cash bookbasis and as defined by FRS 1 (revised 1996): ‘CashFlow Statements’.Long-term commitments4. The requirements of paragraph 31 of theFinancial Memorandum only apply when aninstitution intends to do one of the following:• take out additional financial commitments,including repayable grants from us• refinance existing financial commitments,including fixing the interest rate.5. There is no need to seek our consent where theASC increases above the 4 per cent threshold, orany other threshold approved by the Council, solelyas a result of either an increase in the interest rateon variable rate borrowings or a reduction in totalincome. Similarly, consent is not required ifrefinancing existing commitments results in a lowerASC.6. In all cases, the ASC calculation should reflectthe economic substance, which may differ from thelegal form.7. Long-term financial commitments mean amountswhich are due for payment after more than 12months, in accordance with Generally AcceptedAccounting Principles. These include:• all borrowing, whether self-financing or not• finance leases, subject to the exclusion below• inherited debt and leases which are not fullyreimbursed by us• Private Finance Initiative (PFI) arrangementswhich are accounted for as loans or financeleases in accordance with the requirements ofSSAP 21 or FRS 5and exclude:• lease payments where the combined ASC ofsuch leases does not exceed 0.5 per cent oftotal income.8. The ASC of the financial commitments consistsof total expected net cash payments (capital andinterest) over the period of the loan, divided by theloan period in years. This includes lump sums at theend of the term.9. Where the financing involves a lease-andleasebackof existing assets (that is, the institutionreceives rental income linked to rental expenditure),the ASC should be calculated on the net cashoutflow.10. For new loans, the interest rate to be used inthe calculation is the one in force at the start of theloan, whether this is fixed (for all or part of theloan period) or variable. For existing loans, theinterest rate to be used is the one currently in force.11. The loan period is as defined at the time whenthe commitments are agreed. It starts when the firstpart of the loan is drawn down and ends when thefinal liability is repaid. If there is an option toextend at a later date any part of the commitmentsto a longer term, the ASC will still be measured onthe original term.12. Where the loan period is to be shortened orextended, the ASC calculation should be reworkedusing the revised term and rates of interest in forceat that time. If this increases the ASC above the4 per cent threshold, the institution must get(revised) written consent from the Council.34 HEFCE 2010/19
Our response13. The Council will try to give a response to arequest for consent within 15 working days of thereceipt of all relevant information. Where theproposed ASC for long-term financial commitmentsis above 7 per cent, approval must come from theHEFCE Board. This will extend the period requiredto deal with the request, and institutions shoulddiscuss this with us when they are planning to seekconsent. We accept, however, that very occasionallyan institution may need to get a faster response, inwhich case it should discuss this with us at an earlystage in developing its plans.principles outlined here to the circumstances of eachproposal. If an institution is unsure how to calculatethe ASC or whether consent is required, it shoulddiscuss this with us.Information required15. We set out in Table 3 the information werequire to consider a request for consent. Thisaddresses the issues we would expect theinstitution’s own governing body to seek assuranceon before approving additional financialcommitments. The main focus is on affordabilityand risk, not necessarily on the individual project.14. In responding to requests for consent we aim tobe helpful and pragmatic, applying the generalTable 3 Information required by HEFCE to consider a request for consent for new financialcommitment(s)Long-term financial commitments1. There should be a reasonable case for the new investment.Information required:a. Brief description of the new investment.b. An explanation of how it broadly fits with the institution’s mission and strategic priorities.c. Confirmation that the institution has followed HEFCE guidance on appraising investment decisions.2. The new financial commitment or refinancing arrangement should be consistent with the institution’sfinancial strategy and represent good value for money.Information required:a. An explanation of why additional finance or refinancing is necessary and how this fits with the financial strategy.b. The forms of finance considered and the selection process and criteria.c. The net present value for each financing option and a brief explanation of why the chosen method was selected.3. Details of the new financial commitments.Information required:a. Details of the chosen option, including: name of lender, sum borrowed, loan period and basis of repayment.b. Terms and conditions of the financing (for example, a copy of the offer letter) and an evaluation of the risks anduncertainties.4. The new investment and financial commitments must be affordable.Information required:An update of the latest financial forecasts, to include the impact of the new investment and financial commitments, anddemonstration that they are affordable. This update must include any other material changes in the institution’s financialprospects, including guarantees to third parties.HEFCE 2010/19 35
5. The institution’s governing body has made an informed decision about the new investment and financialcommitments.Information required:a. Details of when the governing body approved the new investment and financial commitments, and a minute of thedecision reached.b. A summary of the information the governing body received in reaching its decision.6. Details of the new threshold.Information required:a. Details of continuing financial commitments (including the lender, loan term and ASC) and of the new financialcommitment.b. A calculation of the new threshold required.Short-term financial commitments1. Short-term financing should be an appropriate solution.Information required:a. Brief description of why increased short-term finance is necessary, and how this fits with the financial strategy.b. Cash flow forecasts which show the need for the increased borrowing.c. The forms of finance considered and the selection process and criteria.d. Brief explanation of why short-term finance was selected.2. Details of the new financial commitments.Information required:a. Details of the arrangement, including: name of lender, sum borrowed, loan period and basis of repayment.b. Terms and conditions of the arrangement (for example, a copy of the offer letter) and an evaluation of the risks anduncertainties.3. The institution’s governing body has made an informed decision about the short-term financingarrangements.Information required:a. Details of when the governing body approved the arrangements and a minute of the decision reached.b. A summary of the information the governing body received in reaching its decision.4. Details of the new threshold.Information required:The revised threshold (in £) and the period for which this is required.36 HEFCE 2010/19
HEFCE guidance that may be helpful16. The following documents may be helpful, and are all available on the HEFCE web-site www.hefce.ac.ukunder Publications:• ‘Financial strategy in higher education institutions’ (HEFCE 2002/34)• ‘Investment decision making: a guide to good practice’ (HEFCE 2003/17)• ‘Practical guide to PFI for higher education institutions’ (HEFCE 2004/11)• ‘Borrowing in the higher education sector: 2004 update’ (HEFCE 2004/44)• ‘Guide for Members of Higher Education Governing Bodies in the UK’ (HEFCE 2009/14).HEFCE 2010/19 37
Annex GExchequer interestsIntroduction1. This annex reflects the revised system forexchequer interests, which will provide betteraccountability for public funding while reducing theexisting administrative burden on institutions andenabling them to manage their estates more flexibly(see HEFCE Circular letter 12/2006).Requirements2. Each institution, having entered into anagreement with HEFCE effective on 1 August 2006to enable the retrospective elements of a new systemof accounting for exchequer interests to be enacted,shall follow the conditions set out below.3. The exchequer interest identified and agreedwith HEFCE in that agreement will form theopening balance of a simple exchequer interestregister maintained by HEFCE. The register will beadjusted immediately for the addition of capitalgrants received in the year, and annually for both ofthe following:• indexation of the opening balance and all grantsreceived in subsequent years• writing down grants over the prescribed period.4. The indexation rate used will be the GDPdeflator published annually by the Treasury. Thiswill take account of changes in value and ensurethat the value of the exchequer interest is noteroded through inflation.5. All capital grants made by HEFCE after1 August 2006 that create an exchequer interest willbe entered onto the register, regardless of how theyare treated for accounting purposes.6. The opening exchequer interest balance as at1 August 2006 will be written down over a 10-yearperiod on a straight-line basis. All further capitalgrants will be written down annually over 15 yearsfrom the year of the grant in question on a straightlinebasis, to recognise their consumption throughthe provision of education over that period.7. The closing balance of the register as at 31 July2007 and annually thereafter will provide a singlereportable sum for the exchequer interest, and will beconfirmed annually with the institution by HEFCE.8. As repayment of exchequer interest only occursin exceptional circumstances (see below), it does notneed to be disclosed as a contingent liability in theinstitution’s annual accounts.Circumstances in which theexchequer interest becomesrepayable9. If either of the following remote events occur,they will trigger immediate liability for theinstitution to repay HEFCE the full amount of theexchequer interest (as shown in the exchequerinterest register at that date). The institution willrecognise HEFCE as an unsecured creditor untilsuch repayment is made. If a liability to makerepayment arises, HEFCE may agree to acceptrepayment of some other sum, or to delayrepayment, at its absolute discretion, and suchagreement may be on terms and conditions asHEFCE thinks fit.10. The first trigger event will be if the institutionbecomes insolvent, including going into liquidationor administration, or if it dissolves or transfers itsundertaking to some other body (for example, bythe exercise of the Secretary of State’s powers underthe Education Reform Act 1988), or if itexperiences any analogous event.11. The second trigger event is if there is asignificant reduction in the level of HEFCE-fundedactivity by the institution, using the followingindicators:• the absolute level of HEFCE income• the absolute level of total income• the percentage of total income represented byHEFCE income.12. A base level for each of these indicators will beset as at 31 July 2006 by reference to theinstitution’s 2005-06 financial statements. Thetrigger event will only occur if two or more of thethree indicators reduce to at least 50 per cent fromthe base level.13. This second trigger has been designed to ensurethat HEIs are not discouraged from generatingother sources of income, providing they continue to38 HEFCE 2010/19
offer the same level of HEFCE-funded education.HEIs may activate the trigger if, for example, theycease to educate publicly funded students,significantly downsize or go into liquidation, but areunlikely to do so if activities continue as normal orthey expand. We will not use our exchequer interestrules to penalise institutions that are successful indiversifying their income.14. The agreed base level for each indicator will bereviewed every five years by HEFCE and may bereset if appropriate to reflect the changing nature ofthe provision of education and more generalchanges within public sector funding.15. If two or more of the trigger indicators reduceto at least 30 per cent from the base level, this willlead to discussions between HEFCE and theinstitution about the impact of further downsizing,including consideration of whether to reset the baseindicators.16. If the triggers are activated, HEFCE has theright, but not the obligation, to request repayment.It has discretion to waive the requirement forrepayment.HEFCE 2010/19 39
Annex HInformation requirements for HEIs that are exempt charities1. This annex sets out our main requirementsrelating to annual and longer-term cyclicalmonitoring of HEIs as exempt charities. These arenew requirements that arise from our becoming theprincipal regular of HEIs as charities from 1 June2010.2. In addition to the requirements set out here,from time to time we may need to ask for otherinformation to enable us to deal with particularissues about HEIs as charities. Our power to collectany information necessary for our role as principalregulator is set out in Section 79A Further andHigher Education Act 1992 (introduced by TheCharities Act 2006 (Principal Regulators of ExemptCharities) Regulations 2010 (statutory instrument2010 No. 501)).3. This annex does not apply to the HEIs that areregistered charities, who provide informationdirectly to the Charity Commission (‘theCommission’). Nor does it apply to the oneHEFCE-funded HEI that is not a charity because itis part of a local authority.4. The information requirements of HEIs as exemptcharities (see paragraphs 5 to 12 below) are similarto those of the Commission for registered charities.The Commission publishes some of the informationit collects on its own web-site; instead we requireeach HEI to publish information on its own site. Wemay subsequently provide more detail about someitems in the HEFCE Accounts Direction to HEIs,which is updated by an annual circular letter. Ane-mail list, charityreg-hefce, is available for anyoneto join who wants to keep up to date on issuesrelated to HEFCE’s charity regulation role; it can beviewed or subscribed to at www.jiscmail.ac.uk/cgibin/webadmin?A0=charityreg-hefce.Information to be made readilyavailable on HEIs’ web-sites5. HEIs that are exempt charities must develop apage on their web-site by 31 January 2011 toprovide a gateway to the following information:a. The legal name and correspondence address ofthe HEI. The preferred name(s) used by the HEIshould also be shown.b. The main constitutional document of the HEI(such as its Royal Charter, Memorandum andArticles, or Trust deed). This should be thedocument that was in force in 2009-10,including any changes made during that year. Arecord of changes that occurred thereafter willbe required.c. The names of the trustees on 31 January eachyear, together with a list of all other charities (ifany) of which each trustee is then also a trustee.The first such list will be the names of thetrustees on 31 January 2011.d. The full audited consolidated financialstatements for 2009-10, and each year thereafteruntil five years of financial statements areavailable. From 2014-15 it will be sufficient tomaintain links to the most recent five years offinancial statements.6. The ‘gateway' web page should be easy to locateon the HEI's web-site and should be updated withthe previous year's information no later than sixmonths after the end of the previous academic year.(The first such page should therefore be available by31 January 2011.) HEIs must provide HEFCE withthe web address (URL) of the gateway page so thatthird parties can access it via our own web-site, andto send us an update of it if the URL changes.Information to be included inaudited financial statements7. The following information must be included inthe HEI's audited financial statements and relatedreports from 2009-10:a. The charitable status of the HEI.b. The trustees who served at any time during thefinancial year and until the date the financialstatements were formally approved.c. A statement that the charity has had regard tothe Commission’s guidance on public benefit.d. A report on how the HEI has delivered itscharitable purposes for the public benefite. Information about payments to or on behalf oftrustees, including expenses; payments totrustees for serving as trustees (and waivers of40 HEFCE 2010/19
such payments); and related party transactionsinvolving trustees.f. From 2010-11: the names of linked charities ofthe HEI.We are not specifying where in the financialstatements this information should be presented,but it is likely that:• a and b will form part of the corporategovernance statement• c and d will either form part of the operatingand financial review or be presented as aseparate section• e and f will be included in appropriate notes tothe financial statements.Reporting serious incidents8. A serious incident is one which has resulted in, orcould result in, a significant loss of funds or asignificant risk to a charity’s property, work,beneficiaries or reputation. More guidance as towhat might constitute a serious incident for a HEI isavailable on the charity regulation section of theHEFCE web-site (www.hefce.ac.uk/charityreg). HEIsmust report serious incidents to HEFCE at the timewhen they are identified. Incidents to be reportedunder the new requirements are any that HEIsbecome aware of on or after 1 June 2010. We havealso included in HEFCE’s annual assurance return(see Annex E) a specific declaration that seriousincidents have been appropriately reported to us.This declaration will be made on behalf of alltrustees. It would be appropriate therefore for thegovernors to be informed about incidents reportedto HEFCE; however, we do not stipulate how thisshould be done.9. Paragraphs 14-17 of Annex B set out ourreporting requirements in respect of the loss of anHEI’s assets through fraud, theft or other cause. Wewill consider an incident reported under the termsof paragraphs 14-17 both as funder and asprincipal regulator.10. In addition, and as principal regulator in thefirst instance, we expect HEIs to report thefollowing serious incidents:• donations of more than £25,000 fromunknown donors or where the source cannotbe verified• abuse or mistreatment of a charitablebeneficiary involved in activities of the HEI• disqualification of a trustee• known or alleged links (other than for bonafide academic reason) with proscribedorganisations or terrorism; this applies totrustees, staff, students or anyone elseassociated with the HEI.Further guidance on how to interpret this reportingrequirement is available on the HEFCE web-site atwww.hefce.ac.uk/charityreg.11. A report of a serious incident should be sent toHEFCE’s head of assurance. Our primary concern isto satisfy ourselves that the HEI has responded tothe incident in an appropriate way, designed toprotect the HEI as a charity. In order for us to dothis, HEIs should provide as much information aspossible to help us to decide if their response hasbeen appropriate and what, if any, further action isappropriate. In particular we would expect thereport to indicate:• whether the incident has happened or issuspected• when it occurred and who was involved• the impact of the incident on the HEI, anybeneficiary involved, or both• what inquiries have been made and/or actionstaken, including any reports to other regulatorsor the police• what policies and procedures were in place thatapply to the incident, whether they werefollowed and, if not, why• whether the trustees have determined thatpolicies and procedures need to be introducedor revised – and if so, how and by when.We would welcome a provisional report if it islikely that internal investigations may be timeconsuming.HEFCE 2010/19 41
12. In extreme cases, a serious incident report maylead us to invite the Commission to consideropening a formal Inquiry under S8 of the CharitiesAct 1993.13. We appreciate that information provided underthe terms of paragraphs 10 and 11 may be of asensitive nature, and we undertake to treat it withcare. We ask for the information to fulfil ourstatutory obligations as principal regulator, andsuch obligations may require us to consult theCommission to ensure that we deal with an issue ina manner consistent with the regulation of charitiesgenerally. As public authorities, both HEFCE andthe Commission are subject to the Freedom ofInformation Act. We will only disclose informationto someone outside HEFCE or the Commission incircumstances where we are legally obliged to do so.Further guidance about the way HEFCE applies theFreedom of Information Act and the DataProtection Act 1998 is available on our web-site.42 HEFCE 2010/19
Annex ISummary of responsibilities of members of governing bodies1. HEFCE is the lead public funder of highereducation institutions (HEIs) and also acts in theinterests of fee-paying students. HEFCE requires theinstitutions that it funds to have high standards ofcorporate governance. This annex describes themain legislative and other requirements placed ongoverning bodies. HEFCE is not empowered toenforce every requirement specified here, but willtake breaches that come to its attention intoconsideration in its risk assessments.Financial Memorandum2. HEFCE requires institutions to comply with theFinancial Memorandum (FM). Governing bodiesmust ensure that the mandatory requirements of theFM are complied with, and that full andappropriate consideration is given to all elements ofthe FM and the Audit Code of Practice (Annex B).HEFCE will enforce this requirement using thepowers available to it through the FM and theFurther and Higher Education Act, 1992. HEFCEalso requires governing bodies to ensure that theconditions of grant imposed by other public fundingbodies are complied with.Legislative obligations3. HEFCE requires institutions to meet thelegislative requirements imposed upon them ascorporate bodies, in particular the laws relating to:• higher education institutions, notably theFurther and Higher Education Act, 1992• employment• health and safety• diversity and equality of opportunity.HEFCE is not empowered to enforce these lawsdirectly but will take breaches that come to itsattention into consideration in its risk assessments.Trustees and directors4. Members of governing bodies are charitabletrustees and, in some cases, directors of companies.As such, HEFCE requires compliance with theCharities Acts and, if applicable, the CompaniesActs. In particular, HEFCE requires trustees todischarge their duties of compliance, prudence(including to ensure financial solvency) and care,and to accept ultimate responsibility for the affairsof the charity. HEFCE will report material noncompliancewith trustee obligations to theCommission. The duties on trustees and directors(as set out in chapter 2 of part 10 of the CompaniesAct 2006) are similar in that they require boardmembers to promote the interest of the organisationand to act with integrity, care and prudence. Theseduties reflect the expectations that HEFCE has forthe governors of HEIs.Constitutional requirements5. HEFCE requires that governing bodies dischargethe obligations imposed on them by institutions’constitutions (charters and statutes or instrumentsand articles of government). In particular, governingbodies must:• ensure that the finances of the institution aremanaged in order to ensure solvency andsustainability• appoint and supervise and, if necessary, suspendor dismiss the vice-chancellor or principal• ensure the welfare of students is secured• ensure that there is an effective framework –overseen by its senate, academic board orequivalent – to manage the quality of learningand teaching and to maintain academicstandards.HEFCE will exceptionally enforce theserequirements by exercising its power in a lawful andreasonable manner to make conditions of grant toensure that the obligations are met.Good governance6. HEFCE expects governing bodies to organiseand conduct themselves in accordance with thegood practice guidance and principles set down bythe Committee of University Chairs (CUC). HEFCEexpects governing bodies to adopt the CUCGovernance Code of Practice and to report on theircompliance with the CUC guidance every year intheir financial statements – or to explain why theirgovernance arrangements differ from thoserecommended by the CUC.HEFCE 2010/19 43
7. HEFCE expects each governing body to adopt astatement of primary responsibilities in line withCUC guidance in which the governing bodydelegates to the head of institution responsibility forthe management of the institution and its policies.Members’ conduct8. HEFCE expects members of governing bodies toconduct themselves in a manner appropriate topublic office holders and to adhere to the sevenprinciples of public life which are set out by theCommittee on Standards in Public Life for the benefitof individuals who serve the public in any way:Governance evaluations9. HEFCE expects governing bodies to undertakeperiodic reviews of their effectiveness, and toproduce reports and action plans for improvementthat are made public. In our view, such reviews willinspire greater confidence if governing bodiesengage persons independent of the institution toassist in the process.Selflessness: Holders of public office should actsolely in terms of the public interest. They shouldnot do so in order to gain financial or othermaterial benefits for themselves, their family, ortheir friends.Integrity: Holders of public office should not placethemselves under any financial or other obligationto outside individuals or organisations that mightseek to influence them in the performance of theirofficial duties.Objectivity: In carrying out public business,including making public appointments, awardingcontracts, or recommending individuals for rewardsand benefits, holders of public office should makechoices on merit.Accountability: Holders of public office areaccountable for their decisions and actions to thepublic and must submit themselves to whateverscrutiny is appropriate to their office.Openness: Holders of public office should be asopen as possible about all the decisions and actionsthat they take. They should give reasons for theirdecisions and restrict information only when thewider public interest clearly demands.Honesty: Holders of public office have a duty todeclare any private interests relating to their publicduties and to take steps to resolve any conflictsarising in a way that protects the public interest.Leadership: Holders of public office should promoteand support these principles by leadership andexample.44 HEFCE 2010/19
Annex JModel letters of appointment for new head of institutionand the accountable officerDear …I write to congratulate you on your new role as Vice-Chancellor/Principal of … with effect from … I hope thisproves to be both a challenging and rewarding position.May I draw your attention to the attached formal letter outlining your responsibilities as the AccountableOfficer. Please take time to read this and the accompanying documentation and kindly return theacknowledgement form to me.My colleagues in the HEFCE institutional team should already have been in contact with you to discuss waysin which HEFCE will work with your institution, and will be happy to provide any other information or adviceyou may need. I would also welcome a meeting with you at an early opportunity, and my office will be incontact shortly to arrange a suitable date.Finally, if you feel that I can help at any time, please do not hesitate to ask.I look forward to working with you.HEFCE Chief ExecutiveHEFCE 2010/19 45
Dear …Responsibilities of Accountable OfficersIn accordance with the revised Financial Memorandum between the Council and institutions that came intoforce on 1 August 2010 (HEFCE publication 2010/19), I am writing to you formally in my capacity as theAccounting Officer of the Higher Education Funding Council for England (HEFCE) to outline theresponsibilities expected of a higher education institution’s accountable officer.As the head of your institution, you have a general responsibility for ensuring that all public funds you receiveare used properly and achieve value for money. Your role as accountable officer also incorporates specificresponsibilities.As accountable officer you are required by the Financial Memorandum with HEFCE to advise the governingbody on the discharge of all its responsibilities under the Financial Memorandum and the Audit Code ofPractice. You are also required, jointly with the governing body, to ensure that all such responsibilities aredischarged.You are required to advise the governing body if, at any time, any action or policy under consideration by thegoverning body appears to you to be incompatible with the terms of the Financial Memorandum. You arefurther required to inform me in writing immediately if the governing body decides nevertheless to proceedwith such an action or policy.As accountable officer you are responsible and accountable to your governing body, and in turn to HEFCE(and ultimately to Parliament) for ensuring that the uses to which your institution puts funds received from theHEFCE, the Skills Funding Agency (SFA) and the Training and Development Agency for Schools (TDA) areconsistent with the purposes for which those funds were given and comply with the conditions attached tothem, including those set out in the Further and Higher Education Act 1992 and in the FinancialMemorandum with HEFCE. As Accounting Officer of HEFCE, I am required by the Department for Business,Innovation and Skills to be able to demonstrate that I am satisfied that your institution has the financialmanagement systems to enable it properly to administer the grant received from the HEFCE, SFA or TDA.As accountable officer you have a personal responsibility for propriety and regularity in the use of the fundsreceived from the HEFCE, the SFA and the TDA; you also have a duty to ensure that such funds are properly,prudently and economically managed.As accountable officer you are required to inform the chair of your audit committee, the chair of yourgoverning body and myself, as Accounting Officer of HEFCE, of:• any adverse variance in the financial position which in your judgement is material to the institution’ssustainability; and• any serious weaknesses, significant frauds or any major accounting breakdown reported to you byexternal or internal auditors or which come to light by any other means.As accountable officer you are responsible for ensuring that your institution’s annual accountability returns aresubmitted to HEFCE.As required by the Audit Code of Practice, your institution must make its books and records open toinspection by the Comptroller and Auditor General, who may carry out value for money studies of theinstitution’s use of resources. If the Public Accounts Committee of the House of Commons wishes to discussany matter relating to your institution’s grant, they may need to examine you alongside the Accounting Officerof HEFCE and the Principal Accounting Officer of the Department for Business, Innovation and Skills. Youmay therefore be called before the Public Accounts Committee on matters of regularity, propriety or value formoney relating to your institution’s grant.46 HEFCE 2010/19
Finally, as accountable officer you and the governing body, are required to have regard to any furtherguidance on the responsibilities of accountable officers as may be issued from time to time by HEFCE. Thiswill include any subsequent versions of the Financial Memorandum.If you have any questions on these matters, either now or subsequently, please contact Paul Greaves, Headof Assurance, on 0117 931 7378.I would be grateful if you could sign the attached form [not included in this model letter] and send it tome by return to confirm that you understand and accept the responsibilities outlined above and the detailedresponsibilities set out in the Financial Memorandum.Yours sincerelyHEFCE Chief ExecutiveHEFCE 2010/19 47
Annex KModel letter of appointment for new chair of a governingbodyDearI write to congratulate you on your appointment as the chair of the board/council of …….. and to draw yourattention to the responsibilities which you and your members have under the terms of the FinancialMemorandum (FM) between the institution and the Higher Education Funding Council for England (HEFCE).To ensure the proper stewardship of public funding, it is important that the conditions attached to HEFCEgrants are satisfied and that the collective duties of the members of the board as charitable trustees areproperly discharged. I enclose a copy of the FM and would particularly draw your attention to Annex A whichsummarises the institution’s mandatory responsibilities to HEFCE. The head of institution (normally the Vice-Chancellor or Principal) is designated as the accountable officer, responsible for assuring your board/counciland HEFCE that our conditions of grant and the other requirements of the FM are being met. I imagine thatyou will want to talk this through with [him/her].I am sure that you will also want the institution to have high standards of corporate governance, andcommend the ‘Guide for Members of Higher Education Governing Bodies in the UK’ published by theCommittee of University Chairs which is readily available.Finally, I wish you every success in your new appointment. The higher education sector in England is wellserved by its council/board members, who bring great experience, insight and professionalism to the work ofuniversities and colleges. I thank you and your colleagues for contributing in this way. If you would like any helpor advice in your new role please do not hesitate to contact me or your HEFCE associate director [name].Yours sincerelyHEFCE Chief Executive48 HEFCE 2010/19
Definitions and abbreviations1992 Act Further and Higher Education Act 1992Accountable officerAccounting officer (of HEFCE)Annual accountability returns exerciseBISCAGCUCDELFECFRSGovernance Code of PracticeGoverning bodyHEHEFCEHEFCEASHEIHESAHESESIIAJANETHead of an institution responsible and accountable to HEFCE (andultimately to Parliament) for ensuring that the institution uses HEFCEfunds in ways that are consistent with the purposes for which thosefunds were given, and complies with the conditions attached to them.These include the conditions set out in the Further and HigherEducation Act 1992 and in this Financial MemorandumAs accounting officer, the chief executive of HEFCE has a personalresponsibility to safeguard public funds and achieve value for money asset out in HM Treasury guidance, ‘Managing Public Money’ and anysubsequent guidance. This includes responsibility for the public fundsallocated by the Council to higher and further education institutions andother bodies for education, research and associated purposes.A streamlined accountability process between HEFCE and institutions,linked to an assessment of institutional risk, which comprises anexchange of documents and dialogue during a specific period each yearDepartment for Business, Innovation and SkillsComptroller and Auditor GeneralCommittee of University ChairsDepartment for Employment and Learning in Northern IrelandFurther education collegeFinancial Reporting Standard‘Guide for Members of Higher Education Governing Bodies in the UK:Governance Code of Practice and General Principles’ (HEFCE 2009/02)The university council, board of governors or other body ultimatelyresponsible for the management and administration of the institution’srevenue and property, and the conduct of its affairsHigher educationHigher Education Funding Council for EnglandHEFCE assurance serviceHigher education institutionHigher Education Statistics AgencyHigher Education Students Early StatisticsInstitute of Internal AuditorsHigh-speed computer network supported by all the four higher andfurther education funding bodies, which links universities and colleges inthe UK. SuperJANET is the enhanced networkHEFCE 2010/19 49
Legally distinct entityNAOProprietyQAARBRegularitySecretary of StateSFASLCTDAthe Codethe CommissionVFMAn organisation receiving HEFCE grant funding from an HEI to which itis accountable, but operating independently from that HEINational Audit OfficePropriety in the use of public funds concerns conduct, behaviour andcorporate governance. It embraces fairness, integrity, the avoidance ofpersonal profit, even-handedness, open competition, and the avoidanceof waste and extravaganceQuality Assurance Agency for Higher EducationRelated body (a non-HEI/FEC body through which significant levels ofHEFCE funding are distributed or activities promoted)Regularity is a public finance requirement for funds to be applied only tothe extent and for the purposes authorised by ParliamentSecretary of State for Business, Innovation and SkillsSkills Funding AgencyStudent Loans Company LimitedTraining and Development Agency for SchoolsHEFCE's Audit Code of PracticeCharity CommissionValue for moneyReferences to the financial position, financial statements, financial commitments or borrowings of theinstitution mean the consolidated financial position, financial statements, financial commitments or borrowing ofthe institution and its subsidiary undertakings, as defined in the Companies Act 1985 and revised by theCompanies Act 1989 and 2006, and in accordance with generally accepted accounting principles.Shall and must denote mandatory requirements, and should denotes our view of good practice.50 HEFCE 2010/19
Higher Education Funding Council for EnglandNorthavon HouseColdharbour LaneBRISTOLBS16 1QDtel 0117 931 7317fax 0117 931 7203www.hefce.ac.uk
Appendix 15Previous Officers of the University
Charan Aujla LocalSection nameAppendix 15Previous Officers of the UniversityChancellor1926–35 J H Benyon1935–37 Sir Austen Chamberlain1937–59 Viscount Templewood (formerly Sir Samuel Hoare)1959–69 Lord Bridges1970–92 Lord Sherfield1992–07 Lord CarringtonVice–Chancellor1926–29 W M Childs1929–46 Sir Franklin Sibly1946–50 Sir Frank Stenton1950–63 Sir John Wolfenden1963–64 Professor J M R Cormack (Acting Vice–Chancellor)1964–78 Sir Harry Pitt1979–93 Dr E S Page1993–02 Professor Sir Roger Williams2003–11 Professor G MarshallPresident of the Council1926–30 Alfred Palmer1930–32 Leonard G Sutton1933–66 Sir George Mowbray1966–70 Gerald E H Palmer1970–74 Sir George Abell1974–75 The Hon Gordon W N Palmer1975–80 Sir Michael Milne–Watson1980–87 Sir Philip Rogers1987–94 Sir Donald Hawley1994–03 Dr Paul Orchard–Lisle2003–09 Dr Timothy G Ford©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the Council Appendix 15Vice–President of the Council1926–30 Leonard G Sutton1930–32 Sir Leslie Wilson1932–36 H G Willink1936–46 A G West1946–66 Gerald E H Palmer1966–74 The Hon Gordon W N Palmer1974–75 Sir Michael Milne–Watson1975–77 R A O'Conor1977–82 Sir Edward C Goschen, Bt1982–86 M G Brock1986–95 Sir James Hamilton1995–98 W.A. Palmer1998–02 Dr M E Rayner2002–07 Dr G P BottingSecretary to the Council1926–27 The Revd F H Wright1927–32 H Knapman1932–55 E Smith1955–82 J F Johnson1982–92 T Bottomley1992–03 D C R Frampton2003–08 W D Watts©University of Reading 2011 Monday, 14 November 2011 Page 2
Appendix 16Some statistics
Charan Aujla LocalSection nameAppendix 16Some statisticsStaff (as at 31/08/2011)On payroll 3,176Academic 1,063Technical 209Clerical 637Manual 504Managerial 621Other 142StudentsAll students 17,667Full-time students 12,613Undergraduates (2010–11) 9,027Postgraduates (2010–11) 8,640UK-based International students(excluding those from EU) 2,846Countries of origin of overseas students (excluding EU) 120Degrees conferredUndergraduate 2942Postgraduate (includes PGCEs and PGDips/Certs) 3309Diplomas and certificates 202ResidenceHalls of residence owned by the University 9Total number of Hall rooms 3524Including:Single rooms, fully catered (the majority ofthese rooms have handbasins) 886Single rooms, self-catered 2638En suite rooms 2029©University of Reading 2011 Monday 14 November 2011 Page 1
Handbook for members of the Council Appendix 16Hillside & Martindale Court Student Housingsingle, self-catered rooms for mature students 154Flats suitable for couples or families 100St George’s Hall and Benyon Hall,operated by University Partnership Programmesingle, self-catered rooms 815LandWhiteknightsGreenlandsBulmershe CourtLondon RoadMERL and Martindale siteFarmland342 acres26 acres42 acres11 acres4 acres2,700 acres©University of Reading 2011 Monday, 14 November 2011 Page 2
Handbook forMembers of the Council2011–12For more information, please contact:Mr K N HodgsonUniversity Secretary and Director of GovernanceUniversity of ReadingWhiteknightsReading RG6 6AHk.email@example.comTel (0118) 378 8112www.reading.ac.uk