Financial Management and Control
Section 11: Financial Control
11.1 Budgetary Control
The control of income and expenditure within an agreed budget is the responsibility of the designated budget holder, who must ensure that day-to-day monitoring is undertaken effectively. Budget holders are responsible to their Head of Department for the income and expenditure appropriate to their budget. Significant departures from agreed budgetary targets must be reported immediately to the Director of Finance by the Head of Department concerned and, if necessary, corrective action taken.
11.2 Financial Information
The budget holders are assisted in their duties by management information provided by the Director of Finance. The types of management information available to the different levels of management are described in the detailed Financial Procedures, together with the timing at which they can be expected. The Director of Finance is responsible for supplying budgetary reports on all aspects of the College's finances to Finance and Resources Committee on a basis determined by Finance and Resources Committee but subject to any specific requirements of the relevant funding body. Periodic reports are also presented to Council, which has overall responsibility for the College's finances.
11.3 Changes to the Approved Budget
Changes proposed to the approved budget will be first considered by Finance and Resources Committee, which will make proposals to Council, unless they fall within the delegated approval arrangements for either Finance and Resources Committee or the Senior Management Team.
Where a budget holder is responsible for more than one budget, virement may be permitted of up to 10% of the budget from which virement is sought, with the written approval of the Head of Department. However virement from the established staff budget and other "College-wide" budgets such as Security is not usually permitted and, if requested, requires written approval from the Director of Finance. Virement between budgets held by different budget holders is permitted up to 5% of the budget from which virement is sought with the written approval of the transferring budget holder and the Head of Department. All virements affecting Research income and expenditure and earmarked grants including funds for capital are subject to the funding council or award body regulation. Further details of the rules for virement are in the Budget Manual (part of the Financial Procedures).
11.5 Treatment of Year-end Balances
At the year end, budget holders will not normally have the authority to carry forward a balance on their budget to the following year unless Finance and Resources Committee has approved a specific scheme for carrying forward all or part of unspent amounts. (Details of carry forward arrangements are in the Budget Manual (part of the Financial Procedures).