Controls and governance

The University is a corporation formed by the Royal Charter with charitable status.

The University is governed by Council which is responsible for:

• Overall administration and management
• Audited financial statements

To do this it considers:

• University statutes
• Combined code on Corporate Governance
• Office for Suudents Accounts direction
• Governance Code of Practice and General Principles

Full details are included in the University financial statements.

Relevant to finance are:

• Office for Students Financial Memorandum
• Statement of Recommended Practice on Accounting for Further and Higher Education Institutions (SORP)
• Accounting standards
• Company Law

The Council has to ensure:

• suitable accounting policies are selected and applied consistently
• judgements and estimates are reasonable and prudent
• accounting standards have been followed
• it is appropriate that the financial statements are prepared on the going concern basis
• funds from Office for Students are used in accordance with the purpose and conditions prescribed
• appropriate financial and management controls safeguard public funds and funds from other sources
• safeguarding the University's assets and the prevention and detection of fraud
• economical, efficient and effective management of the University's resources and expenditure

Council achieves assurance through reports received, work undertaken by University Committees and the University system of financial control which includes:

• comprehensive planning processes, supplemented by detailed annual income, expenditure, capital and cash flow budgets
• regular reviews of performance and financial results involving variance reporting and updates of forecast outturn
• comprehensive Financial Regulations, approved by the Audit Committee, Finance Committee and Council
• clear definitions of the responsibilities of staff and defined formal requirements for approval and control of expenditure
• Investment decisions involving capital or revenue expenditure are subject to formal appraisal and review according to levels set by Council
• professional Internal Audit Service whose annual programme is approved by the Audit Committee
• self assessment Controls Assurance Certificates (staff log-in required) certification completed by managers responsible for key systems of financial control; reviewed by the Internal Audit Service and the results reported to the Audit Committee
• any system of internal financial control can only provide reasonable, but not absolute, assurance against material misstatement or loss.