RAVENSBOURNE COLLEGE

OF
DESIGN
AND
COMMUNICATION

FINANCIAL PROCEDURES

(2008)
INTRODUCTION
To conduct its business effectively Ravensbourne College of Design and
Communication (the College) needs to ensure that it has sound financial
management systems in place and that they are strictly adhered to. Part
of this process is the establishment of financial procedures to set out the
how financial policies of the College are implemented.

Funding Council audit services are required to give an assurance that the
College has fully documented financial procedures in place and the
Funding Council may withhold grant where this cannot be shown to be the
case.
AUTHORITY
The Board of Governors approved the Financial Procedures on the 19th July
2006.

AMENDMENTS TO FINANCIAL PROCEDURES

The Financial Procedures may be amended by resolution of the Audit
Committee and, where appropriate, by the Finance and General Purposes
Committee for matters relating to principle. Where amendments are of a
procedural or minor technical nature, or are simply clarifications, the
Director of Finance may make these, on condition that these shall be
reported to the Audit Committee. The Audit Committee retains the right to
refuse to accept any amendments.

CHANGES
Any changes made as above will be communicated to all staff by way of a
reprint of the affected page(s) with an updated issue number and date.
Any such new page(s) will completely replace the existing page(s).

WAIVER OF PROCEDURES
Where full compliance with the procedures can be shown to be
impractical, or would cause undue delay in dealing with a matter of
urgency, two of the senior members of the College (Director, Director of
Finance, Director of Diversity and Progression) may jointly agree to waive
specific regulations for a specific purpose, providing that a proper record
is kept of the reasons and is reported to the Audit Committee.
TERMINOLOGY
THE BOARD OF GOVERNORS
The Board is ultimately responsible for the affairs of the College.

FINANCE AND GENERAL PURPOSES COMMITTEE

The Committee with delegated responsibility for financial matters.

AUDIT COMMITTEE
The Committee with delegated responsibility for regulatory matters. This
includes, but is not restricted to, financial matters. The Audit Committee
is independent of executive responsibility.

DIRECTOR
The Officer with the ultimate executive responsibility for the management
of the College and he / she is the Accounting Officer for the College.

DIRECTOR OF FINANCE
The chief financial officer of the College.

MANAGEMENT COMMITTEE
The Management Committee is the formal meeting forum of the senior
members of the College’s executive team and comprises :-

The Director
Deputy Director: Finance and Support Services
Deputy Director: Strategic Development, Innovation andPost Graduate
Studies
Director of Quality and Student Services
Director of Information Services
Director of Resources
Director of Human Resources
Head of Faculty – Media
Head of Faculty - Communications

BUDGET CENTRE MANAGER

A member of staff who has been assigned their own budget for which
he/she is accountable to their line manager.
FINANCIAL PROCEDURES
INDEX
INTRODUCTION
AUTHORITY
TERMINOLOGY
A GENERAL
A1 BACKGROUND
A2 STATUS OF FINANCIAL
A3 PROCEDURES
FINANCIAL PROCEDURES
A3.1 BUDGETARY VIREMENT
A3.2 PAYMENTS
A3.3 CASH RECEIPTS
A3.4 SALES INVOICES
A3.5 SALE OF MATERIALS
A3.6 SALE OF EQUIPMENT
A3.7 FACILITIES HIRE
A3.8 CREDIT CONTROL
A3.9 FEE INCOME
A3.1 HALLS RENTS & DEPOSITS
0 PETTY CASH
A3.1 PURCHASE ORDER SYSTEM
1 GOODS RECEIVED
A3.1 PURCHASE INVOICES
2 PAYROLL
A3.1 TRAVELLING & SUBSISTENCE
3 EXPENSES
A3.1 CASH MANAGEMENT
4 STUDENTS’ UNION
A3.1 AUTHORITY LIMITS
5
A3.1
6
A3.1
7
A3.1
8
A3.1
9
A GENERAL
A1 BACKGROUND
The College is a Higher Education Corporation established under the terms
of the Education Reform Act 1988 and the Further Education Act 1992. Its
structure of governance is laid down in the instrument and articles of
government. The instrument of government can only be amended by
primary legislation and the articles of government by the Privy Council.
The College is accountable through the Board which has ultimate
responsibility for the effectiveness of the College’s management and
administration.

The College is also a Further Education Corporation created under the

provisions of the Further and Higher Education Act 1992. Its structure of
governance is laid down in the instrument and articles of government,
which may only be amended by application to the Secretary of State for
Education. The College is accountable through its governing body, which
has ultimate responsibility for the effectiveness of its management and
administration.

The College is an exempt charity by virtue of the Charities Act 1993.

The Financial Memorandum between the Funding Council and the College
sets out the terms and conditions on which grant is made. The Board is
responsible for ensuring that conditions of grant are met. As part of this
process the College must adhere to the Funding Council’s Audit Code of
Practice which requires it to have sound systems of financial and
management control.

The Financial Regulations of the College form part of this overall system of
accountability.

A2 STATUS OF FINANCIAL PROCEDURES

This document sets out the College’s financial procedures. It translates
into practical guidance the College’s broad policies relating to financial
control.

These financial procedures are subordinate to the College’s Financial

Regulations and to any restrictions contained within the College’s

7
Financial Memorandum with the Funding Council and the Funding
Council’s Audit Code of Practice.

The purpose of these financial procedures is to provide control over the

totality of the College’s resources and to provide management with
assurances that the resources are being properly applied for the
achievement of the College’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 public funds
● ensuring that the College complies with all relevant legislation
● safeguarding the assets of the College
Compliance with the financial procedures regulations is compulsory for all
staff connected with the College. A member of staff who fails to comply
with the financial procedures may be subject to disciplinary action under
the College’s disciplinary policy.

It is the responsibility of members of the Management Committee to

ensure that their staff are aware of the existence and content of the
College’s Financial Procedures. Each member of staff, as part of the
appraisal process will be required to acknowledge that they have read and
will comply with the Financial Procedures. A member of staff who fails to
comply with the Financial Procedures may be subject to disciplinary action
under the College’s disciplinary policy. Any such breach will be notified to
the Board of Governors through the Audit Committee.

The Audit Committee is responsible for maintaining a continuous review of

the financial procedures and advising the governing body of any additions
or changes necessary. In exceptional circumstances, this committee may
authorise a departure from the detailed provisions herein; such departure
to be reported to the governing body at the earliest opportunity.

A3 FINANCIAL PROCEDURES
A3.1 BUDGETARY VIREMENT

A3.1.1 General
The Director and the Director of Finance may, at their discretion,
make variations in the approved budget.

A3.1.2 Conditions

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The Director of Finance can approve the virement of expenditure,
within or between budgets,

2.1 The Director of Finance’s approval ll virements will only be given

if:-

a) Virements are certified in writing

b) Arrangements have been made to offset increases to any
other account head by making compensating decreases
against another account head or by increasing revenue

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A3.2 PAYMENTS

A3.2.1 General
1.1 Cash withdrawals from the College’s Bank account are only
permitted to replenish the Petty Cash float and to withdraw cash for
use in the College’s Cash Machine (ATM).

1.1 Purchase Ledger payments are normally paid by computer cheque

and, where necessary, may be paid by BACS via Barclays Business
Master.

1.2 Payments which are made by direct debit, and bank charges, must
be posted to the relevant accounts on a daily basis using the bank
statement as a posting source.

1.3 Payments must ONLY be made against a valid invoice or payment

request, provided that it has been approved by the required level of
authority.

A3.2.2 Procedure
2.1 Cash book balances must be checked at regular intervals to ensure
they agree with the corresponding control accounts in the general
ledger. Any differences must be investigated and correcting entries
made.

2.2 A suggested payment schedule should be run at regular intervals to

report on payments that are required up to the appropriate due date
(normally 30 days from invoice date). The listing should be checked
to ensure that all urgent items have been included before the
cheque run is initiated

2.3 Run and print Purchase Ledger remittance advices and cheques. The
suggested payment run schedule report must be retained and the
cheque numbers written clearly against each account.

2.4 Where other cheques are issued via the Purchase, Sales or Nominal
ledgers a photocopy of the cheque should be retained. All cheques
produced by the system are posted automatically to the relevant
accounts. The use of a hand-written cheque is only permitted to
draw down cash for replenishing the college ATM.

2.5 All documents against which payment has been made will be
impressed with the dated “PAID” stamp and the cheque number.

2.6 The bank statement is printed daily from Barclays Business Master
and all outstanding entries (e.g. direct debits, bank charges and
electronic receipts) must be posted via the Cash Book manually.
Once all entries for the day have been posted, the bank

10
 reconciliation is completed and checked by the Assistant
Accountant.

2.7 At the end of each month, the bank reconciliation must be printed
and checked to ensure that there are no bank statement entries
outstanding. The Financial Controller will review the bank
reconciliation monthly and endorse the printout accordingly.

A3.2.3 Authorisation of Invoices

3.1 The invoice authorisation slip is signed to denote:-
a) Goods have been received, examined and approved with
regard to quality and quantity, or that services rendered or
work done is satisfactory
b) Where appropriate, it is matched to the order
c) Invoice details (quantity, price, discount) are correct
d) The invoice is arithmetically correct
e) The invoice has not previously been passed for payment
f) Where appropriate, an entry has been made on a stores
record or departmental inventory
g) An appropriate cost code is quoted. This must be one of the
cost codes included in the Budget Centre Manager’s areas of
responsibility and must correspond with the type of goods or
services described on the invoice.

3.2 The signatory must be a Budget Centre Manager or his/her

delegated officer authorised to sign under the budget code as
shown on the purchase order.

3.3 A list of all Budget Centre Managers and delegated officers is held in
the Finance Department and available on the intranet.

3.3 All invoices are then sent to the Finance Department for payment.

A3.2.4 Finance Department Procedure

4.1 Upon receipt of the invoice and invoice approval form, duly signed
from the Budget Centre Manager or his/her nominated officer, the
invoice is passed to the Director of Finance or a designated member
of the Finance Department for authorisation.

4.2 The Director of Finance, or designated member of the Finance

Department, will review the invoice to check that goods and
services appear to be bona fide and, if necessary, query the invoice
with the originating department.

4.4 When the invoice is approved it is returned to the Finance

Department for processing.

4.5 Where a purchase order exists, the invoice must be matched against
the purchase order when being entered into the Finance system.

11
 Where no purchase order exists the budget code must be entered
into the system.

4.6 The invoice will then be paid on the next payment run appropriate
to the due date of the invoice.

12
A3.2.5 Payment
6.1 Purchase Ledger suggested payment runs must be prepared at
regular intervals depending upon the level of unpaid invoices.
Purchase Ledger cheques produced by the system but not through a
suggested payment run are to be kept to a minimum and may be
drawn as and when required.

6.2 When the cheque and remittance advice is passed for signature,
they must be accompanied by the relevant invoices and the
suggested payment run. Cheques and BAC payments will be signed
in accordance to the Cheque Signatory List, a copy of which can be
found on the intranet

6.3 Cheques with a value of more than £5,000 require two signatures

6.5 After signing the cheque, all of the paperwork is returned to the
Finance Department.

6.6 The cheques and remittance advices are then sent to the supplier.
The invoice is stamped with the date and cheque number and then
filed in alphabetical and date order.

6.7 Suppliers’ statements should be reconciled to their ledger account

in the College’s records as soon as possible.

6.8 Suppliers with queries should not be put into direct contact with the
originator at any time as this may cause a weakness in financial
control. The Director of Finance should be informed of any serious or
protracted disputes.

A3.3 CASH RECEIPTS

A3.3.1 General
1.1 The term ‘cash’ used in this procedure applies to all forms of money
that may be paid into a normal bank account, i.e. coins, notes,
postal orders and cheques.

1.2 A responsible officer must be in charge of dealing with incoming

cash at the point of receipt. The in-house security arrangements for
the handling and storage of cash should be adequate and frequently
tested against Security Procedures.

1.3 Cheques should be inspected for validity, i.e:-

a) The payee name is correct
b) The words and figures agree
c) The date is valid
d) The cheque is signed

13
 Invalid cheques should be returned to the sender and a note made
of the relevant details.
1.4 Receipts of cash must be entered immediately into the Cash Book
via the “Cash Receipting Session option on QLX”. Receipts must be
printed on Ravensbourne Letterhead, signed by a member of
Finance Department Staff and issued to the remitter. Each member
of staff with the authority to accept payments has their own
username and password. Once the receipting session has ended, all
the receipts produced are printed and filed as the College copy and
all entries are posted to the relevant account.

1.5 Where cheques are dishonoured, i.e. “refer to drawer”, the

appropriate bankers advice note should be used as a cash book
posting slip, to reverse the original entry in the Sales Ledger or Cash
Book as appropriate. A letter and/or e-mail must be sent to the
debtor demanding immediate repayment.

1.6 No personal cheques are to be cashed directly from income funds

and no deductions are to be made from income in order to offset
expenditure incurred. Such expenditure should be the subject of a
separate claim made to the Finance Department.

1.7 All income should be banked at regular intervals having regard to

the amounts involved. This will normally be weekly during term
time, but if there are large amounts of cash (e.g. during enrolments)
the frequency should be increased to ensure that insurance limits on
cash held are not breached. All banking journeys involving cash
must comply with Insurance requirements concerning the amounts
of cash carried and the number of escorts that are required.

1.8 At the discretion of the Financial Controller, surplus £10 notes may
be used to replenish the College ATM. A transfer between Cash
books must be recorded in the accounting system and the
transaction shown on the Cash Banking Sheets.

1.9 The Finance Department safe is insured for cash (i.e. coins and
notes) up to a total of £5,000. If that figure is exceeded at any time
the Director of Finance must be informed immediately.

1.10All cash brought to the Finance Department by other areas of the

college must be entered into a “Cash Receipting session” and a
signed receipt produced and issued to the member of staff remitting
the cash.

1.11The remittance advices and income advices relevant to each paying-

in operation must be filed with the Income Sheet and not discarded

A3.4 SALES INVOICES

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A3.4.1 General
1.1 All Sales invoices are normally issued by the Finance Department
and must be sequentially numbered.

1.2 Should other departments within the College require a sales invoice
to be issued, they should contact the Finance Department with the
request.

A3.4.2 Procedure
2.1 Complete the sales invoice, making sure that invoice is sequentially
numbered.

2.2 The particulars of the charge should be made clear to the recipient.

2.4 Invoices for fees are raised from the Class lists; this is normally
carried out in November of each year after all the students have
enrolled and the course listings are complete.

2.3 Invoices for Halls of Residence are raised from a spreadsheet

provided by the Accommodation Officer.

A3.4.3 Admissions
3.1 The Financial Controller is responsible for following up late or
delayed payments from the Student Loan Company and sponsors.
The Registry Department provides assistance concerning matters
arising from the confirmation of Student attendance to the Student
Loans Company. The Director of Finance will review matters
regularly.

3.2 The Financial Controller is to ensure that adequate Finance staff will
attend the enrolment and re-registering to collect moneys from
students. Only in very exceptional circumstances must a student be
allowed to re-enrol without first clearing all debts from the previous
academic year.

3.3 The Financial Controller is to ensure subsequent debts are paid and,
if necessary, to advise the student to contact the Student Welfare
Department over use of the Access Fund and/or compassionate
cases.

A3.4.4 Residences
4.1 Students are required to provide cheques prior to arrival to cover
the first term of residence and the deposit, and post-dated cheques
for the remaining terms. Students moving in mid-term must make
full payment due (including post-dated cheques) before being given
room keys.

15
A3.4.5 Finance
5.1 Invoices for Tuition Fees, Registration Fees and consumable charges
are saved electronically and, in addition, can be reprinted through
QLF. Invoices are not issued for Halls of Residence unless specifically
requested by a student. Copies of all other invoices are retained in
the Finance Department.

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A3.5 SALE OF MATERIALS

A3.5.1 Definition
1.1 Sale of Materials - the sale of consumable materials held as school
or departmental stocks.

A3.5.2 General
2.1 Staff and students may purchase for their own personal use
materials held in stock at the discretion of the Head of Faculty.

A3.5.3 Pricing
3.1 The price paid will be the replacement cost plus VAT if applicable,
plus a sum to contribute to administration costs at the discretion of
the Director of Finance, this will normally be 5% of replacement
cost.

A3.5.4 Surplus Stock

4.1 Surplus stock will be disposed of at a price agreed with the relevant
stockholder and the Director of Finance.

A3.5.5 Procedure
5.1 Payment must be made at the time of receipt and entered
immediately in the relevant receipt book.

A3.6 SALE OF EQUIPMENT

A3.6.1 Definition
1.1 Sale of Equipment - Disposal of College Assets

A3.6.2 General
2.1 VAT is chargeable on items of equipment sold as the College is
registered for VAT. If this changes a further notification will be
issued.

A3.6.3 Pricing
3.1 The Director of Finance and the relevant Head of Faculty will fix the
sale price.

A3.6.4 Procedure
4.1 Equipment for disposal will be entered on the form supplied and
write off approval obtained

4.2 The Director of Finance will ensure that the Asset Register is
amended where appropriate.

17
4.3 Budget Centre Managers are responsible for seeing that inventories
are amended as required.

18
A3.7 FACILITIES HIRE

A3.7.1 Introduction
1.1 The resources and studios at the College are an extremely valuable
College asset. Use of these by individuals or groups other than
those pursuing existing curricular related activities within
designated hours must be charged at market rates. There may be
occasions when the users of these facilities are not charged at full
cost; these will be at the discretion of the Director of Finance and
will be exceptional.

A3.7.2 Definition
2.1 The use of any facilities (including staff and their time) for the
production of, or in support of the production of art works, artefacts,
films and videos or any other product or process (which is not part
of an approved teaching programme) for personal or commercial
purposes and for externally funded or sponsored events.

2.2 The hiring out of artefacts, artworks, films and videos or any product
or process which can be determined to be linked with
Ravensbourne.

A3.7.3 General
3.1 Individuals or groups who use the resources and studios at
Ravensbourne other than those pursuing existing curricular related
activities within designated hours must be charged at market rates.

3.2 Costs will be determined in conjunction with the Director of Strategy

and Commercial Development, who will approve the final price in
writing.

A3.7.4 Procedure
4.1 The Director of Strategy and Commercial Development or his/her
nominated officer must issue full details to the Finance Department.

4.2 Upon receipt of this information, the Finance Department will then
raise an invoice to be sent to the user.

4.3 A copy of the invoice is posted to the sales ledger.

A3. 8 CREDIT CONTROL

1 Student invoices are raised during November from the class lists
after all students have enrolled. The Student assessment form is
used to determine the split between fees invoiced to the Student
and the Student Loans Company (SLC).

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 2 Credit control work is carried out by contacting Students by letter,
mobile phone and e-mail. The Student Loans Company is contacted
by e-mail. Student Statements are sent out each term, during the
first term and shortly before the commencement of the second and
thirds terms as a reminder that payments are due. Letters are sent
to students who are in arrears or default with their fees.

3 The standard procedure for self-pay students is to request payment

directly on enrolment. Students are allowed to pay their fees on a
term basis. The Finance Department follows up any unpaid
individual debts and will withdraw access to the College facilities if
the debts remain unpaid. The Finance Department will ultimately
report matters to the Course Leader/Tutor to instruct that work not
be assessed or marked if fees remain unpaid.

4 The Finance Department will review the Tuition Fee Position report
from the SLC once it has been received and will raise the required
credit notes and re-invoice where the levels of fees to be paid by the
student and the SLC have changed. Action may also be required
where a student has failed to produce an assessment form.

5 The College uses firms of solicitors and debt collectors who will collect
outstanding balances owed by former students for a small
commission.

6 Sums in excess of £500 cannot be written off without the consent of

the Finance and General Purposes Committee; between £100 and
£500 requires the consent of the Director; below £100 requires
authorisation from the Director of Finance.

A3.9 FEE INCOME

A3.9.1 General
1.1 Fee invoices are raised by the Finance Department and an
electronic copy is retained. Copies can also be reprinted through
QLF.

1.2 The split of fees between the Student and the Local Education
Authority is entered in QLS and the invoice is raised. The invoice
is then posted through to QLF to the individual student account.
Any amounts due from the SLC are posted to student’s “A”
account.

1.3 The Finance Department follows up all debts with the appropriate
means of contacting the student.

1.4 Payments are made at the Finance Department, where Finance

Department staff issue receipts in the normal way.

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A3.9.2 Procedure
2.1By the start of term individual faculties have a list of their new
student intake. The Faculties pass acceptance forms to the Student
Administration which ensures that individual student details match
that on QLS.

2.2There will always be a non-continuing element of prior year

students. Some will decide not to continue, some who have failed
their first year examinations will be automatically excluded, and
some will not have performed up to the required standard and will
be put “on review”. In the case of a student not continuing, the
student is required to complete a clearance form and obtain
confirmatory signatures that all levies and fees to the school have
been paid and any items on loan have been returned. The student
must present the clearance form to other relevant departments (e.g.
library - library books returned) and eventually to the Finance
Department. The student is then removed from the database and
the clearance form is filed on the student file.

2.3Enrolment and re-registration takes place in the first week of term; it

will be attended by the Financial Controller to collect any fees
payable and to issue receipts for moneys received. The Financial
Controller must be given a list of students who are enrolling/re-
registering. The amount of tuition fees and consumable charges is
determined by the fee matrix agreed at the start of the academic
year. Students pay their course levies and fees on the day of
enrolment. The vast majority of students will enrol; the small
minority failing to do so will be followed up by the Student
Administration Department. By the time the student has left the
enrolment hall, providing the student has successfully completed all
the forms and paid the relevant fees, they will have their College ID
card and be enrolled on the system. The final stage of enrolment will
be to have the tuition fee invoiced by the Student Administration
Department based on the student status and Financial Assessment
form. The Head of Faculty is then able to interrogate the Student
Identifier on the network to confirm those students enrolled on the
individual courses.

2.4The Fee invoices are sequentially numbered and raised in the

enrolment hall. The physical copy of the invoice will be sent to the
student with their first statement at the end of the first month. A
duplicate copy of the invoice will be held electronically in the Finance
Department.

2.5Cash received in respect of fees is handled by the Finance

Department. As soon as cash is received it is receipted and the
receipt given to the payer (or filed if not required).

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 2.6Cash and cheques received are kept in the safe located inside the
Finance Department

2.72.7 All cash and cheques stored in the safe will have been receipted
onto the system. On a weekly basis (or more frequently if required) a
banking sheet is completed detailing all the amounts to be banked,
separating cash from cheques and ensuring that all receipt numbers
have been entered onto the banking sheet.

A3.10 HALLS RENTS & DEPOSITS

A3.10.1 General
1.1 Halls rents and the amount of the deposit are decided as part of
the Budget process before the end of the spring term each year
for commencement in the following September.

1.2 The Accommodation Officer allocates rooms during the summer

vacation; the students are required to send a deposit on receipt
of the offer to confirm their acceptance of the letting.

1.3 Students must pay the full first term’s rent before they are
allowed to move into the room. Cheques may be post-dated to
coincide with receipt of grant cheques at the discretion of the
Finance Department and providing the deposit has been paid in
full. Further post-dated cheques must be deposited for the
remaining terms.

1.4 Until the deposit and rent for the term has been paid in full, no
student will be allowed access to the room without special
permission from the Director of Finance.

1.5 Students undertake to remain in Halls for the Academic year and
will not be released from this obligation unless the room can be
re-let.

A3.10.2 Deposits
2.1 At the end of each term the Accommodation Officer will supply a
list of deductions to be made from deposits, and each line of this
list is posted to the Sales Ledger as an invoice. Deposits less any
deductions or other debts are repaid after the end of the summer
term. Students leaving the Halls prior to the end of the Academic
year may be refunded their deposits less any deductions or other
debts earlier if the room has been re-let.

A3.11 PETTY CASH

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1 The Finance Department controls Petty Cash with a float of
£1,000

2 The limit for Petty Cash is £50 on any one transaction unless
authority to exceed this limit has been given by the Director of
Finance. Other claims in excess of that figure are to be entered
on the Purchase Ledger and paid in the next cheque run.

3 Payments may only be made if the Expense Claim Form or other

docket is properly authorised and coded. Expenses must be
claimed within one month of the date they are incurred.

4 When the float is nearly exhausted, the payment dockets are

summarised on a Petty Cash Reimbursement Form and the total
of the claim plus the cash remaining must agree to the float. Any
discrepancy must be investigated. Cash for the total of the claim
is then drawn by cheque from the current account.

5 The Director of Finance or designated Finance staff member

checks the Petty Cash dockets and signs the claim before signing
the cash cheque. Checks of the cash are also made without
notice at random intervals.

6 The Petty Cash cheque is posted to the Cash Book in the same
way as other system produced cheques and allocated as per the
Petty Cash Reimbursement Form.

7 The Cashier will have discretion on Petty Cash payments and

retains the right to postpone the reimbursement of claims in the
interest of Cash Management.

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A3.12 PURCHASE ORDER SYSTEM

A3.12.1 General
1.1 The Purchase Order books are a three-part set printed on NCR
(No Carbon Required) paper, padded into sets of 50.

1.2 Numbered order form pads are kept in the Finance Department
and issued as controlled stationery to authorised originators
against their signature in a register. The register records the
name of the individual concerned, the department, and the serial
numbers of the order forms issued.

1.3 These forms will be used for all orders raised.

The following table identifies the contractual delegation currently

approved by the Board. Further detail can be found in Authority
to Commit Expenditure. Specific delegated authorities can be
found in the Authorized Signatory List which can be found on the
College’s intranet.

TYPE OF LEVEL OF APPROVAL (£)

EXPENDITUR
E
Budget Manageme Director Board
Centre nt Group
Manager member

Recurrent 0-5,000 5,001- 10,001-100,000 101,000

10,000 +
Capital 0-3,000 3,001- 10.001 – 250,001+
10,000 250,000
Salaries – None None All staff except Director/
permanent Director / Clerk Clerk to
staff to the Board / the Board
Director of / Director
Finance of
Finance
Salaries – 0- 5,000 5,001- 10,001 +
Sessional 10,000
Salaries 5,001- 10,001 +
Agency 10,000

Budget Centre Managers are responsible for ensuring that orders

are not raised which lead to a budgetary limit being exceeded.

Orders require the endorsement of a designated Finance staff

member. Please see A3.19 Finance Department Authorities, for
current authorities.

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In addition, all orders for computer equipment, printers and
software, must be endorsed by the Head of ICT prior to issue.

Orders for Capital Equipment also require the specific approval of

the Director of Finance or the Director as to the timing of
purchase.

25
A3.12.2 Procedure
2.1 The Purchase Order set is printed on NCR paper and any mark
impressed on the top white copy will appear on the blue and pink
copies. Care must be taken to use an insert to avoid
inadvertently marking following orders.

2.2 Spoiled or cancelled orders MUST NOT be destroyed but should

be marked accordingly and sent to the Finance Department in
the normal way.

2.3 Complete the Purchase Order making sure that all relevant boxes
are filled in.

2.4 The amount of VAT (where applicable) must be shown and

included in the final total.

2.5 The originator should complete the ‘Contact Name’ area in order
that the supplier can make contact in the event of any query.

2.6Budget Centre Managers MUST insert their own expenditure codes in

the ‘Code’ box. Care must be taken to ensure that the budget code
is correct.

2.7After completion and signing by the Budget Centre Manager the

white and blue copies should be forwarded to the Finance
Department for approval. The Finance Department will assign a
system generated number to the order which is then written on the
white and blue copies.

2.8After approval and signing by the Finance Department the WHITE

copy is returned to the Budget Centre Manager and can be
forwarded to the supplier as an order confirmation. The Budget
Centre Manager must not place any order with a supplier until they
receive the signed copy of the purchase order from the Finance
Department.

The BLUE copy is retained by the Finance Department and used

to input the order into the Finance System. It is then filed by the
Finance Department in numerical sequence as generated by the
Purchase Order System.

The PINK copy remains in the order book and should be retained
by the Budget Centre Manager. When invoices are received for
approval the Budget Centre Manager should mark them on the
appropriate page in the order book.

26
2.9 No official order shall leave the College without previously being
passed through the Finance Department and signed by the
Director of Finance or designated Finance staff.

2.10 Confirmation or oral orders are strictly forbidden. In the event of

the issue of an official order not being approved by the Director
of Finance or designated Finance staff, the Budget Centre
Manager may be held responsible for all liabilities incurred should
an oral order be issued.

2.11 Where such a breach has occurred, the Director of Finance will
notify the Audit Committee. This breach may result in disciplinary
action being taken.

27
A3.12.3 Finance Department Procedure
3.1 When an order is received in the Finance Department the Finance
staff will ensure that the relevant nominal ledger code has been
entered and that the order has been correctly signed. If not, the
order is to be returned to the originator for it to be amended or
correctly signed.

3.2 It is the responsibility of the Budget Centre Manager to ensure

that the order does not lead to the revenue budget being
exceeded.

3.3 A designated member of the Finance Staff places a sticker on the

white copy of the purchase order. This sticker must be stamped
with the college stamp and signed to indicate approval. Current
delegations can be found at A3.19.

3.4 The order is then entered into the QLX Purchase Order System for
the commitment to be generated. The system generated order
number is then written on both the white and blue copies of the
order.

3.5 The white copy of the order is then returned to the originator and
the blue copy is filed in sequential number order in the Finance
Department.

A3.12.4 Outstanding Orders

4.1 It is the responsibility of all Budget Centre Managers to review
periodically the outstanding orders and to inform the Finance
Department of items to be cleared from the Purchase Ledger..

A3.12.5 Purchase Invoices

5.1 When purchase invoices are received, they are matched to orders
held in the finance system prior to authorisation for payment.
The order number must be written on a coding slip which is
attached to the invoice. The Budget Centre Manager must check
the invoice against the purchase order and raise any query with
the Finance Department should a significant variation arise or
when the invoice details do not agree with the order. No order
and invoice should be approved by the same person.

5.2 Where a purchase order has not been raised, the invoice must be
forwarded to the Budget Centre Manager. To ensure separation of
duties between ordering and receipting, two approved authorised
signatories must sign all such invoices

5.3 A coding slip must be attached to all invoices. The coding slip
contains the following information: -
Supplier Code
Order No.

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 Invoice No.
Invoice Amount
Nominal Ledger Code and amount (3 lines of this for invoices
relating to more than one code)
Space for initials for Order Checked
Space for initials for Order Complete (if it is)
Space for signatures of Authoriser and Director of Finance or
designated Finance staff.

5.4 Invoices must not be entered into the QLX account system unless
they have been approved by the Budget Centre Manager and
signed off by a nominated officer of the Finance Department.

5.5 The invoice is then posted to the relevant Purchase Ledger

Account. Where a purchase order exists, the invoice is “matched”
against the purchase order to ensure that the commitment is
reduced by the value of the invoice paid. Where the
goods/services have been received in full, the purchase order
must be marked as “fully matched”

5.6 Invoices must be manually totalled prior to posting. The total is

entered into the system as a batch total in order that the system
can check the total against the value of invoices entered.

A3.13 GOODS RECEIVED

A3.13.1 General
1.1 It is essential that:-
a) The quantity delivered agrees with the quantity shown on the
delivery note and also on the purchase order, unless a part
delivery.
b) The quality is of the standard or specification stated on the
purchase order.
c) The price, where shown, is in accordance with that quoted on the
purchase order.

A3.13.2 Procedure
2.1 On receipt of goods, ensure that they are in accordance with the
desired specification and are not damaged or defective in any way.
Any queries regarding the goods should be referred back to the
supplier immediately and confirmed in writing. If goods cannot be
examined at the time of delivery but the external packaging is not
damaged, the goods received note should be marked “contents not
examined, external packaging intact” and appropriate steps taken
to examine the goods within the time limits set out in the supplier’s
conditions for acceptance of goods.

29
 2.2 In the case of services supplied, it is essential to ensure that these
have been carried out satisfactorily before signing any documents.
All disputes should be notified to the Finance Department.

2.3 When an invoice is received, the Delivery Note must be stapled to

the back of it.

A3.14 PURCHASE INVOICES

A3.14.1 General
1.1 It is the responsibility of the receiving department to ensure that
invoices are certified for payment and passed to the Finance
Department as soon as possible. The person certifying for payment
must NOT be the person who raised the order.

1.2 It is the responsibility of the receiving department to ensure that

invoices are properly checked for accuracy before passing them for
payment.

1.3 The overall procedure will contain within it an early payment

facility, but it is stressed that this does not short circuit the system;
rather it is simply an express method that allows advantage to be
taken of early discounts and other settlement inducements.

1.4 The Director of Finance will, at his/her discretion, authorise earlier

or immediate payments in case of need. Such payments will be kept
to a minimum, bearing in mind that a 30-day cycle is within normal
commercial standards.

A3.14.2 Verification
2.1 All invoices are to be received by the Finance Department, date
stamped on the day of arrival and posted on to the Purchase Ledger.
A coding/certification slip will be attached to each invoice.

2.2 It must be ensured that the invoice is an original, that it carries a

serial number and date, that the College is shown as the customer
and that the College’s official order number is quoted. If the invoice
is a photocopy, investigation must take place to ensure the invoice
has not, or will not, be paid twice. Faxed copies of invoices are NOT
acceptable in any circumstances.

2.3 Invoices will be sent to the relevant school or department for

verification but must then be returned immediately to the Finance
Department.

2.4 There are certain types of invoice for which a purchase order will
not be raised, i.e. non-ordered supplies such as:-

30
 a) Services such as gas, electricity, water, etc.
b) Legal and statutory charges, rent, rates, etc.
c) Contractual charges, telephones, hire of machinery, etc.
d) Consultancy charges.

In these cases, approval for payment must be authorised by a

Budget Centre Manager as in Procedure 1. In the case of
metered services, i.e. gas, electricity, etc., Estates staff must
check the bills to ensure they are reasonable. Energy bills are
copied and sent to the Energy Consultants employed by the
College.
2.5 The Director of Finance or designated Finance staff must approve
all invoices for payment.

A3.15 PAYROLL

A3.15.1 General
1.1 The Director of Finance is responsible for all payroll matters and
the Payroll Officer is responsible for entering the pay amounts
into the nominal ledger and the payroll control accounts. The
Director of Finance or designated Finance staff will check each
month to ensure that the payroll is sound.

A3.15.2 Starters
2.1 Once a new employee is accepted for a position, a letter is
despatched to the individual and the Human Resources Officer
will open a file for the employee. The Human Resources Officer
will notify the Payroll Officer of the appointment.

2.2 All employees sign a formal contract which sets out their terms of
employment. The contract is issued to the starter in duplicate.
The new employee keeps the top copy the other copy is signed
and returned to the Human Resources Office for the file. Every
contract is to be signed by the Director on behalf of the College.
Contracts for short-term staff specify the dates of employment,
together with the hourly rates of pay. Such contracts have a
defined number of hours to be worked and paid. Short-term
contracts are signed either by the Director or the Director of
Finance.

2.3 The Payroll Officer initiates the history card for new employees,
by means of an amendment form sent to the payroll provider.
Details are taken from application forms and P45 to cover such
information as name, address, starting date, age, bank details,
current salary, tax code.

31
 2.4 The Payroll Officer allocates short-term contract staff to a
sessional teaching spreadsheet, which is used to monitor the
total number of hours actually worked against the contracted
hours. Claims made by short-term contract staff are verified by
the respective Business Support Officers and then authorised by
the Director of Finance on a monthly basis.

2.5 The job file contains the original job specification, application
form, employee references, personnel checklist, contract of
employment.

2.6 Students employed by the College may sign a P38(s) exemption

form thereby excluding them from Income Tax. They are however
still subject to National Insurance contributions if exceeding the
minimum rates which apply. Students failing to sign the P38(s)
are subject to Income Tax deductions at the basic rate.

2.7 All persons employed under contracts of employment are paid

through the payroll system. Income Tax and National Insurance
deductions are implemented unless they can obtain a letter from
the College’s tax office to say that these deductions need not be
made. Where persons are engaged in other than academic work
in the College e.g. electrical or maintenance work, the Director of
Finance, who must be consulted in advance, will decide the
distinction between a contract of employment and a contract for
service.

A3.15.3 Leavers
3.1 The Human Resources Officer will liaise with the Payroll Officer
when an employee leaves the College. A copy of the resignation
letter will be passed to the Payroll Officer as authority to process
the leaver on the payroll system.

3.2 P45 forms are prepared by the payroll provider.

3.3 The Director of Finance or designated Finance staff is made

aware of the leavers in any month and will check to ensure that
they have been excluded from the payroll in the appropriate
month.

A3.15.4 Standing Data

4.1 Changes are put through once per month by means of an entry
on an amendment form. These forms are input on to the payroll
system.

4.2 The Payroll Officer maintains a running monthly summary of

required amendments once notified. This schedule can then be

32
 used to agree the correct processing of amendments on to the
payroll systems.

4.3 Employee history cards are updated by the payroll provider from
the amendment forms received.

4.4 The payroll provider produces printouts of amendments that

have been input; this is checked by the Payroll Officer to ensure
all amendments have been put through correctly.

A3.15.5 General
5.1 The Payroll is organised into several departments and codes.
Each department is subdivided according to function viz.
Academic, Sessional, APTC and Technicians. This is used as the
posting source into the nominal ledger.

5.2 Payroll preparation is performed by the payroll provider.

5.3 The payroll provider will incorporate all the amendments that
have been notified on the Amendment Form. The payroll will be
returned the following day, together with pay slips and printout
detailing amendments and whether or not they have been
accepted. Items not accepted are investigated by the Payroll
Officer and resolved accordingly.

5.4 Moneys are transferred directly to employees’ Bank Accounts

under the BACS system, with the payroll provider advising the
College bankers as necessary.

5.5 The Payroll Officer checks the pay slips against the previous
month’s report, ensuring that any differences can be explained
by reference to the amendments list.

5.6 The payslips are also reviewed by the Director of Finance, or

designated Finance staff, who checks for unusual items such as
large payments, and for known starters and leavers to ensure
they have been correctly processed.

5.7 Payroll journals raised from summaries produced by the payroll

provider are posted to the nominal ledger. The nominal ledger
has a series of control accounts for PAYE, National Insurance,
Superannuation, Gross and Net Pay and these are initially
credited with the payroll balances. The control accounts should
clear to a nil balance each month when debits are made; the
debits being the payments made to the Inland Revenue, Pension
Funds and employees. Any discrepancies must be investigated.

5.8 As a result of the mid-month cut-off point for payroll

amendments, some starters and leavers, and amendments to

33
 standing data, may not be incorporated in the payroll. This gives
rise to the need to make manual payments and adjustments.
These are known as “off systems” and should be kept to a
minimum. These are notified to the payroll provider the following
month to amend the individual records.

A3.15.6 Employee Codes

6.1 Finance defines the account code list, which includes codes for all
employee locations and types.

6.2 The account code in respect of employees identifies both location

and type of employee.

6.3 For each employee, the Payroll Officer is notified of the

appropriate budget code. In selecting the code, the Payroll
Manager will ensure that it corresponds with the location
identified in the annual budget.

6.4 The Payroll Officer will input the code together with other
employee and payment details into the payroll system.

6.5 The budget code numbers form the basis of the monthly payroll
analysis, which is supplied to and used by the Financial Controller
to input the payroll journal into the accounting system via journal
entries.

A3.16 TRAVELLING & SUBSISTENCE EXPENSES

A3.16.1 General

1.1 Regulations concerning travel and subsistence can be found in

the College’s Travel and Subsistence Policy..

1.2 The Staff Expense Claim Form is an un-numbered, single sheet

form. This also includes Car Mileage Allowance The forms are
held on the College’s intranet.

1.3 This form may be used for staff of all levels whether permanent
or temporary, full-time or part-time. This form is NOT to be used
for claims by students.

1.4 This form is to be used for expense claims relating to individual

events and may also be used to accumulate the cost of expenses
incurred during each calendar month. Claims more than two
months old will be accepted at the discretion of the Director of

34
 Finance. No payments will be made for expenses over six
months old.

1.5 Approval of expenditure based on the estimated cost must be

obtained from the Head of Faculty or Line Manager concerned
BEFORE the event takes place. All foreign travel must be
approved by the Director.

1.6 This form must be used to obtain reimbursement of all travelling

and subsistence expenses incurred whilst on College business, by
completing the actual cost section.

1.7 Charges for meals and accommodation are to be moderate and

in keeping with proper stewardship of public funds. Where
entertainment is involved, a full explanation and details of the
persons involved must be provided. Receipts and vouchers must
be obtained where appropriate.

1.8 It should be noted that a private car mileage claim is calculated

as the distance in miles from the normal place of work to the
destination and return. However, if a member of staff travels
directly from home, the distance claimed should be actual
mileage if the distance is less than from the normal place of
work.

1.9 Travel and expenses claims including travel to work (e.g. by

Special Lecturers or Examiners etc.) are taxable and must be
paid through the payroll system.

A3.16.2 Procedure
2.1When all relevant expenditure has been incurred, the claim form
should be completed.

2.2 Expenditure receipts and other supporting documentation should

be retained and attached to the claim form before submitting for
approval.

2.3 The form must be approved as per the Authorised Signatory List
which can be found on the College’s intranet.

2.4 The form should then be submitted to the Director of Finance, or

his/her nominated representative, prior to presentation to the
Finance Department.

2.5 Payment of expense claims will be made via the payroll (even
though the items are not taxable).

35
A3.17 CASH MANAGEMENT

A3.17.1 General
1.1 The College maintains its bank accounts with Barclays Bank Plc,
Bromley, but on other matters is serviced by Barclays Corporate
Team. The College is on line to the bank (Business Master) and is
able to obtain transaction details. The College is able to move funds
electronically both to other Ravensbourne bank accounts and to
third party suppliers via BACS.

The College also maintains a High Interest Call Account with Bank
of Scotland into which HEFCE grants are paid, and other
investment accounts with Allied Irish Bank.

A3.17.2 Procedure
1.2Annual cash flow forecasts are prepared as a part of the five-year
financial forecasts, which are submitted to HEFCE with the
associated Strategic Plan.

1.3When the annual budget is approved by the Governors, the

Financial Controller prepares a month by month forecast for the year
ahead, taking into account the published payment profiles from
HEFCE & LSC, the due dates for fee payments from the SLC &
students and payments to third party suppliers.

1.4The Financial Controller manages cash balances by ensuring cash is

transferred from the High Interest Call Accounts as and when it is
required.

1.5The Assistant Accountant prepares the daily bank reconciliation by

obtaining the daily transactions from the Business Master System.
The funds in the College’s main bank account are maintained at
£10k closing balance each day. The excess is transferred into one of
the higher rate investment accounts. The Financial Controller checks
the Bank Reconciliation daily.

1.6On a monthly basis, money is placed on deposit for a period of one

month using the cash flow forecast as the prime source. This is then
signed by the Head of Finance and the Financial Controller after
review and sent to the bank.

A3.18 STUDENTS’ UNION

A3.18.1 General
1.1. The Student Union President in conjunction with the Student Union
Treasurer is responsible for maintaining financial control of the
Union.

36
 1.2. Subject to the constraints imposed by the Funding Councils, the
governing body shall determine the level of grant to be made
available annually to the Student Union.

1.3. The College’s internal and external auditors shall have access to
records, assets and personnel within the Student Union in the same
way as other areas of the College.

A3.18.2 Procedures
2.1 On a day-to-day basis, the Student Union Treasurer will receive
cash and request payments in accordance with the College’s
financial regulations. These are to be recorded in a manner
approved by the Director of Finance.

2.2 The Student Union officers (Treasurer, President and Vice-President)

will meet regularly with the Director of Finance or a designated
member of the Finance Department staff to review the state of
finance of the Student Union.

2.3 Should the Student Union wish to expend in excess of £1,000 on

any one project, approval must first be sought from the Director of
Finance.

37
A3.19 FINANCE DEPARTMENT AUTHORITY LIMITS

ITEM AUTHORISER IN FINANCE LIMIT

DEPARTMENT
PURCHASE ORDER Assistant Accountant / Financial Up to
Controller £5,000

Director of Finance / Head of Finance £5,000+

UTILITY/ SERVICE Assistant Accountant / Financial Up to

CONTRACTS/ TELEPHONE Controller £5,000
SERVICES
Director of Finance / Head of Finance £5,000+

INVOICES WITH Assistant Accountant / Financial

PURCHASE ORDER Controller / All invoices
Head of Finance / Director of Finance
INVOICES WITHOUT Assistant Accountant / Financial
PURCHASE ORDER Controller / All invoices
(NON-UTILITIES) Head of Finance / Director of Finance

PETTY CASH – UNDER £50 Assistant Accountant / Financial All

Controller /
Head of Finance / Director of Finance
CASH EXPENSES – UNDER Assistant Accountant / Financial All
£50 Controller /
Head of Finance / Director of Finance
CASH EXPENSES - Head of Finance / Director of Finance / All
OVERSEAS
CHEQUES / BACS Any one signature of Financial Up to
PAYMENTS Controller / £5,000
Head of Finance / Director of Finance

Any two signatures of Financial £5,000+

Controller /
Head of Finance / Director of Finance

INVESTMENT ACCOUNT Financial Controller / Head of Finance / All

TRANSFERS Director of Finance
SALES INVOICES Assistant Accountant / Financial Up to
(non student fee income) Controller £10,000

Head of Finance / Director of Finance £10,000+

CREDIT NOTES Financial Controller Up to
(non student fee income) £1,000
Head of Finance / Director of Finance
£1,000+
SALES INVOICES & Assistant Accountant / Financial Up to
CREDIT NOTES Controller £10,000

38
(student fee income)
Head of Finance / Director of Finance £10,000+
BUDGET VIREMENT – Director of Finance / Head of Finance All
STAFF & NON - STAFF
JOURNAL Financial Controller / Head of Finance / All
Director of Finance

39