Finance Operations v2.2

Finance Operations

imperialcollegeunion.org/trainingimperialcollegeunion.org

Finance Operations2011/12 Edition

Finance Operationsimperialcollegeunion.org/training

Contents

Contents 2

Introduction 3

Warnings & Advice 4

Value Added Tax (VAT) 5

Getting money into your accounts 14

Which income code to use 23

Getting money out of your accounts 24

Payments to individuals 25

Payments to companies 28

Money out in other ways 31

Money out - queries 34

Which expenditure code to use 35

Miscellany & summary 36

Frequently Asked Questions 39

Appendix 1 – Union Financial Regulations 42

Appendix 2 – Transaction Codes 48

Appendix 3 – Management Group Contacts 50

Appendix 4 - Other useful contacts 51

Version 2.2 - 07 November 2011© 2011 - Imperial College Union

Finance Operations

imperialcollegeunion.org/training

Introduction

The Purpose of this Booklet

This booklet provides the details to the Union’s finance regulations and operational procedures – it also outlines what you need to do to actually make things happen. It outlines what you need to know about Value Added Tax (VAT) and the associated paperwork which is required, how to get money into your accounts and importantly how you can get money out of your accounts.

The full Union Finance Regulations are reproduced in Appendix 1 to this booklet. Information about the overview of the system, and how to obtain live finance information are contained within the Finance Overview booklet and eLearning. This is considered necessary pre-reading before using this booklet.

The approval mechanisms for expenditure are via the eActivities system. Information about how to approve expenditure is contained within the eActivities for Finance booklet, which should be read alongside this booklet.

Who this Booklet is for

This booklet is primarily aimed at Treasurers of Clubs, Societies & Projects, while the Finance Overview booklet is primarily intended for both Chairs and Treasurers. Depending on the nature of your activities, you will have varying degrees of interaction with the Union regarding finances.

Michael FosterDeputy President (Finance & Services)E: [email protected]: 020 7594 8060, extension: 58062

Points of contact

Your first point of contact for all financial queries should be your Management Group Treasurer, then the Deputy President (Finance & Services). Details of Management Group Treasurers are given in Appendix 2 of this booklet.


Warnings & Advice

As a Chair or Treasurer of a Club, Society or Project you have been elected into a position of trust, which also holds formal Financial Responsibility for the financial activities of your group for the forthcoming year.

You should always act honestly and within the rules when dealing with financial transactions. Many of the concepts may well be alien when you first start the role, however support and advice is available. You must not seek personal financial advantage from your position – always seek out the best deals which are in the interests of your members.

Your first point of call for support and advice should be your Management Group Treasurer; details of these student volunteers are available in Appendix 3. Please remember that the people holding these roles are volunteers, so please do not expect instant responses.

If you think something is wrong with the items posted on your online transaction pages you should contact the Clubs & Societies Finance Administrator as soon as possible. The longer you leave queries the harder they become to resolve.

The rules and procedures contained within this booklet and the Finance Overview booklet support the Union’s Finance Regulations, available in

Appendix 1. Failure to comply with these regulations and procedures may lead to disciplinary action. A result of disciplinary action may be logged on your permanent College record, which may include a hearing on fitness to practice. This may affect your future job prospects – so think about your actions.

Finance Operations


It is critical that you understand Value Added Tax (VAT) and the implications it has upon the finances of your Club, Society or Project. Not accounting for VAT correctly can be very detrimental to your Club, Society or Project.

Background

Value Added Tax (VAT) is a tax charged on most goods or services sold within the UK, imported into the UK or acquired from the EU.

The Union is a VAT registered organisation, this includes the activities of Clubs, Societies & Projects. When any part of the Union sells a product to a consumer (for example your Club, Society or Project members), it must charge the appropriate amount of VAT, known as Output Tax, which is paid to the Her Majesty’s Revenue and Customs (HMRC) – essentially the UK Government. When the Union purchases goods or services from another VAT registered organisation, it pays VAT on those purchases, known as Input Tax. This is recoverable from the HMRC provided you retain a VAT receipt or invoice.

As a VAT-registered organisation, the Union submits returns to HMRC every three months which calculate the balance between Input Tax and Output Tax, and the balance is paid or recovered.

Gross & Net Amounts

The price displayed on products in all high street shops in the UK, includes VAT. This is known as the gross amount. The net amount is price excluding VAT. The relationship is demonstrated in the example below:

Net £100 (Gross/1.2)

VAT @20% £20.00 (Gross - Net)

Gross £120.00 (Net x 1.2)

All financial information provided to you contains the net amounts, excluding the VAT.

Rates of VAT

Different rates of VAT apply to different types of product. There are three main rates of VAT and there are also products which are exempt altogether.

Standard Rate – Currently 20 per cent

You will be most familiar with Standard Rated VAT which applies to the vast majority of goods and services. It is the default rate which applies if no other rate is stated.

Reduced Rate - Currently 5 per cent

Reduced Rate VAT is less common. It applies to a few items such as children’s car seats and women’s sanitary products.

Value Added Tax (VAT)


Zero Rate – Currently 0 per cent

You are more likely to encounter Zero Rated VAT in your year as a Union Officer. Zero rated items include essential foods, public transport and printed materials.

Exempt

Some goods and services are exempt from the VAT regime; however this is not a VAT rate. Remember, no VAT has been charged, hence you cannot claim any VAT back. Examples of VAT exempt goods and services include insurance, educational training and fund raising events held by charities. The rate of VAT which is being charged will generally be indicated on any receipt or invoice you receive from a supplier. Remember: VAT rates can change with little notice; the rates here were correct at the time of going to print.

VAT Documentation

In order to recover VAT on our expenditure we must have evidence that VAT was paid in the first place. This usually exists in the form of a VAT invoice or receipt. For an amount less than £250, it must contain:• Name, address and VAT registration

number of supplier.• Date of supply.• VAT registration number of the supplier.• Description of goods/services

purchased.• Total, including VAT amount and VAT

rate.

If the receipt or invoice is over £250 it must also have the following:• Customer address registered as

Imperial College Union, Prince Consort Road, London, SW7 2BB.

• Invoice number and date.• For each description of a good or service;• VAT rate, ex-VAT cost, unit price,

quantity, total ex-VAT cost.• Total VAT Amount.• Cash discount (if any).• Invoice total, including VAT.

An example of a typical VAT Invoice from a company can be seen on the next page; the various items required are indicated.

Value Added Tax (VAT) cont...

Finance Operations




Some companies do not produce VAT receipts automatically from their tills. Supermarkets are a common example of this. Below is a copy of a supermarket VAT receipt obtained from the customer services desk. This is where you may need to go to get one. Remember to pay special attention to the calculations on handwritten receipts such as this to ensure they are correct. Note the miscalculation on this particular receipt, circled in red.


Finance Operations


Recovering VAT

Recovering VAT is very important, as it is money that your Club, Society or Project will be saving and can add up toa considerable amount over the course of a year. Essentially it is simply a case of collecting receipts with the correct information on. Without a valid VAT Invoice the gross amount will becharged to your Club, Society or Project account instead of the net amount. You may encounter difficulty when trying to obtain VAT Invoices, as not all shops will automatically provide one. The person buying the goods will often have to ask for one specifically. By Law all VAT registered companies must provide a VAT invoice/receipt when requested.

Income and VAT

As a VAT registered organisation, the Union must pay VAT on the majority

of its income, which includes income taken by Clubs, Societies & Projects. On most goods and services you have to remember that the standard rate of VAT must be added on when you are calculating the price of the product or service you are offering. Additionally, remember that prices advertised to members must be the gross price, inclusive of VAT.

Membership

All membership fees are standard rated, except for sporting clubs. This is sport as defined by the HMRC, not whether you think your activity is sport. The Union has an agreement with HMRC whereby we pay a special rate of VAT, currently set at 5% on sporting club memberships. As all Club, Society & Project memberships must be purchased online via imperialcollegeunion.org, all the VAT calculations are made automatically.



To find out if your Club, Society or Project is defined as a sporting club, please contact the Clubs & Societies Finance Administrator.

VAT Exempt Income

Some income is exempt from VAT. Income directly derived from sporting related activities, such as match fees, are exempt from VAT. However, it must be directly related to the playing of the sport, so the sale of kit to members is standard rated unless it is solely used for playing matches.

Income gained from fund-raising events is also exempt from VAT. However, please contact the Deputy President (Finance & Services) for more information before you begin planning

any activity that you believe may be VAT exempt.

Remember, for any event or activity where the income is VAT exempt, the expenditure is also VAT exempt. Fundraising events should be allocated their own Activity Code to isolate them within your Transaction Pages.

VAT Zero Rated Income

Any income from the sale of zero-rated goods or services such as newsletters and brochures is zero rated for VAT. It is important to note the difference between VAT exempt income and income which is zero rated. If zero rated, the VAT on the Input Tax can be reclaimed.


Finance Operations


Outside Scope

Some income may be declared as outside the scope of the VAT system. If you believe you have income of this nature (which is very rare) then please contact the Clubs & Societies Finance Administrator for advice.

VAT Codes for Income

In addition to providing a transaction code for each item of income going into your accounts you will also be required to associate a VAT code to that income, to determine which amounts are standard rated, zero rated or exempt. The VAT codes for income are: S1 Standard rated S0 Zero rated SE Exempt SN Outside scope

Donations and Sponsorship

Clubs, Societies & Projects may receive sponsorship from external organisations to help meet the costs of an activity or event. This will be in return for some benefit to the sponsor, e.g. their logo in an event programme or on a sports kit. This benefit is classed as a service therefore the income received in exchange for that service attracts VAT at the standard rate. Before you negotiate a sponsorship deal, you should attend the training session on Sponsorship and contact the Deputy President (Finance & Services) with details of the proposal.

A donation is defined as a goodwill gesture with no benefit returned to the donor. Donations do not attract VAT. If your Club, Society or Project receives a donation, you are required to provide a letter from the donor stating clearly the money received is a donation. If no such letter is provided, the income has to be treated as general income and will attract VAT at the standard rate.

Expenditure and VAT

The Union is able to recovera large proportion of the VAT it pays as a result of purchasing goods or services. However, this is only possible when the correct documentation is supplied when making claims and paying invoices.



If you are buying goods or services from a VAT registered supplier, they may request payment before the goods or services are delivered. They will produce a pro-forma invoice which is not a valid VAT receipt. This means that after your payment you must obtain a VAT receipt after delivery – this may not happen automatically, you are likely to need to chase them for this paperwork.

Please refer to the chapter on Getting Money Out of your Accounts for more information on how to pay pro-forma invoices.

VAT Exempt Expenditure

As with income, any expenditure directly derived from sporting related activities, such the hire of facilities and the purchase of kits and equipment for match purposes, is exempt from VAT.

Expenditure connected to fund-raising events is also exempt from VAT. However, please contact the Deputy President (Finance & Services) for more information before you begin planning any activity that you believe may be VAT exempt.

Remember, for any event or activity where the expenditure is VAT exempt, the income is also VAT exempt. Fundraising events should be allocated their own Activity Code to isolate them within your Transaction Pages.


VAT Zero Rated Expenditure

Any expenditure relating to zero-rated goods or services such as newsletters and brochures is zero rated for VAT. It is important to note the difference between VAT exempt expenditure and expenditure which is zero rated. If zero rated, the VAT on the Output Tax can be reclaimed.

Outside Scope

Some expenditure may be declared as outside the scope of the VAT system. If you believe you have expenditure of this nature (which is very rare) then please contact the Clubs & Societies Finance Administrator for advice.

VAT Codes for expenditure

In addition to providing a transaction code for each item of expenditure going into your accounts you will also be required to associate a VAT code to that income, to determine which amounts are standard rated, zero rated, and exempt. The VAT codes for expenditure are: P1 Standard rated P0 Zero rated PE Exempt PN Outside scope

What happens when you don’t get it right?

If you held a dinner for 100 people, which cost your Club, Society or Project £10 per head (including VAT), then you charged each attendee £11 for a ticket to the dinner, you assume it would make £100 profit, right? Wrong. As a VAT-registered

Finance Operations


Things to remember about VAT

• The Union (including its Clubs, Societies & Projects) is a VAT-registered organisation.• The Union can reclaim VAT providing it has the correct receipts• Most goods and services are subject to the standard rate of VAT, currently 20%.• Gross is including VAT. • Net is excluding VAT.• VAT has to be charged on most income, such as ticket sales.• All prices advertised must be inclusive of VAT.

Expenditure Quantity Gross VAT NetMeal @ £10 per head(inclusive, standard rated) 100 £1,000.00 £166.67 £833.33

Income Quantity Gross VAT NetMeal @ £11 per head(inclusive, standard rated) 100 £1,100.00 £183.33 £916.67

Profit/(Loss) £83.34

Expenditure Quantity Gross VAT NetMeal @ £10 per head(inclusive, standard rated) 100 £1,000.00 £0.00 £1000.00

Income Quantity Gross VAT NetMeal @ £11 per head(inclusive, standard rated) 100 £1,100.00 £183.33 £916.67

Profit/(Loss) (£83.33)

If, however, you failed to obtain a VAT Invoice for the meal, the bottom line would look a lot bleaker.

organisation the Union has to pay VAT on ticket income, so instead of £1100, only £916.67 will end up in your account; the remaining £183.33 belongs to HMRC. The resulting picture would look like:



Getting money into your accounts

There are various ways your Club, Society or Project can get money into your accounts within the Union. Most money will come either from your members or from events you are running. The preferred method of collecting money in this instance by taking payments online via imperialcollegeunion.org.

Alternatively cheques or cash may be collected. Invoices may be raised, this is useful when dealing with companies, together with internal transfers if you are collecting money from another Club, Society, Project or Union department.

Take Payments Online

Every Club, Society or Project is able to set up products in the online shop section of the Union’s main website, imperialcollegeunion.org. Details of how to do this can be found in the training on workbench, which is compulsory for all Treasurers.

Setting up items in the online shop is the preferred method of taking payments. It is simple for the person paying as they receive an automatic receipt from the system. More importantly it is much easier for Club, Society or Project Treasurers – the system automatically generates lists of who has purchased which products, maximum numbers

can be applied to avoid overselling and the potential for losing large amounts of money which doesn’t belong to you is avoided.

The money which is collected online appears directly in your Club, Society or Project’s accounts within 96 hours of someone paying, making it very quickly available for you to spend. Taking payments for any membership fees must be done online.

To reiterate, it is strongly recommended and expected that all payments are taken online.

Income from online sales will appear in your online transaction pages in batches relating to items which have been coded to the same transaction code, sold over the space of a few days.

For example, in the figure on the next page this club has coded products they are selling online to the transaction code 590-012-00-1, for travel income. Please note that revenue from more than one product can appear within the same transaction code.

If the online product is a donation you must write to the Clubs & Societies Finance Administrator to confirm this, otherwise payments will be subject to the standard rate of VAT.

Finance Operations


Taking Money to the Bank

Occasionally you may be required to take payments in the form of cash or cheques directly to the bank. As a Chair or Treasurer, you should become familiar with the Union’s procedure for dealing with Income in the form of cash and cheques, which can be summarised in the following three stages:1. Collect: Receive the money from the

individual, and issue a receipt.2. Bank: Pay-in the money at any

NatWest branch using the triplicate paying-in book which has been issued to your Club, Society or Project.

3. Report: Complete an Income Form, attach the duplicate slip and hand it in at the Student Activities Centre.

All cheques must be payable to Imperial College Union, and all cash and cheques must be paid into the Union’s bank account.

Collection of Income

In most cases the Club, Society or Project Treasurer will receive the income from individual members. It is essential that a permanent record of the transaction is made at the time of the sale. The best way to do this is to use a pre-numbered duplicate receipt book, and when issued the receipt should contain:• From whom (the individual).• For what (itemised).• When (the date).• By whom (e.g. the Treasurer).• How paid (cash, cheque).• Cheque number (if applicable).

It is important that the receipt is itemised, list every item at its individual price, so that the VAT can becalculated correctly.

Getting money into your accounts cont...


Accepting Cheques

All cheques must be made payable to Imperial College Union. You must only accept personal cheques on behalf of the Club, Society or Project if they are supported by a valid cheque guarantee card. A guarantee is only valid if:• The cheque does not exceed the

amount shown on the card (usually £50 though occasionally £100).

• The card has not expired.• The signature on the cheque is the

same as that on the card. You also need to record the following on the back of the cheque:

• Card number (the long one on the front, not the account number).

• Card expiry date.• Amount guaranteed by the card.• Club/activity name or code (for tracing

bounced cheques).You should also ensure that the cheque is correctly filled out with the days date, the amount in numbers and words and is signed.

Accepting cash

Any cash or cheques that have been collected must be stored securely until they are paid into the bank. Do not take anything home with you in any circumstances. Remember, you are financially responsible for the Club, Society or Project’s money. Should you lose it you will have to replace it. During office hours, you can store money in a safe in the Union. Outside these hours, we can arrange for you to use the Bar Safe. Contact the Clubs & Societies Finance Administrator in advance if you wish to utilise this facility.

For events occurring off campus you should ensure that all payments have been received prior to the event.


Finance Operations


Paying-in Income

The Union has one bank account (with NatWest) for all Clubs, Societies & Projects. All income from Clubs, Societies & Projects must be paid into this account. Due to the large number of groups, the following procedure must be followed or mistakes are likely to occur.Each Club, Society or Project will have a NatWest Paying-In Book. This should have been handed over by last year’s committee. If you do not have one, a replacement can be obtained from the Student Activities Centre.


These are triplicate Paying-In Books and come with carbon paper to be placed between the slips when you write them to create a further two copies. If you are paying in cheques, remember to record the details of the cheque on the back of the Paying-In Slip so that the Clubs & Societies Finance Administrator can trace any cheques that bounce. You should record the name on the cheque, the amount, the date it was written and the cheque number. The paying-in slip should be completed as follows:



Paying money into the bank

Once you have completed the Paying-In Slip, you can then pay-in the money at any branch of NatWest. The cashier will stamp each of the three slips, tear off the first copy and hand you the book back. Do not use the quick deposit box as the book must be stamped.

The duplicate slip must be attached to a completed Income Form and then be handed in behind the desk in Student Activities Centre. The triplicate copy is for the Club, Society or Project’s records and should be kept in the Paying-In Book.

In order for the income to appear correctly on your Club, Society or Project’s transaction pages there are two things you ensure you do:

• You must complete a yellow Paying-In Form with the details of the money you have paid into the bank and what it is for.

• The duplicate Paying-In Slip from your Paying-In Book must be attached to the yellow Paying-In Form and handed in at desk at the Student Activities Centre. This must be done no more than three days after the money was paid into the bank.

Once you have completed these two operations the net amount (i.e. not including the VAT) will then be credited to your accounts and appear on your online transaction pages.

A summary of the paying into the bank process is shown in this diagram:

Event organiser Club, Society or Project Treasurer

Complete paying-in slip

Pay in money at any Natwest

branch

Transaction pages on eActivities.union.ic.ac.uk

Clubs & Societies Finance Administrator

Complete yellow income form and hand in at Student

Activities Centre

Finance Operations


Send invoices

Money can also be generated through the sale of goods or services and sponsorship. If you are supplying goodsor services, you will need to produce a Union Invoice.

Invoices cannot be issued without a supporting document such as a Purchase Order, written request or a signed contract from a person entitled to act for the customer assuring us that they will pay the invoice.

The supporting document ensures that there is sufficient proof of intent to pay; if this proof does not exist you must receive payment BEFORE the goodsor services are provided.

Invoices automatically allow 30 days for payment. Until an invoice is paid the money will not appear in your accounts. It is the responsibility of the Club, Society or Project to ensure that the invoice is paid.

Never make up your own invoices, always make sure you create an official Union one. An example of a Union invoice is shown on the next page.

To get an invoice you must see the Clubs & Societies Finance Administrator. Take with you the supporting documents. All invoices are handwritten in triplicate – you will need to do this once you have obtained a blank invoice.

The white copy you will need to send to the customer and the pink copy is retained for your records. The green copy of the invoice will be retained by the Union for its records; however it is your responsibility to chase the company for payment.

More information about how to obtain sponsorship can be found in the Sponsorship booklet.



imperialcollegeunion.org

Invoice Imperial College UnionBeit Quadrangle

Prince Consort RoadLondon, SW7 2BB

Tel: 020 7594 8069Fax: 020 7594 8065

VAT Reg No. GB 240 5617 84

To

Invoice Number Date

Our Reference Your Reference

Bank Details for Bank Transfer:Name: National Westminster plc.Branch: South Kensington Station

Account No: 00618136 / 00618152

Sort Code: 51-50-01

Description £Price/UnitQuantity

Net Total

VAT@ %

Amount Due

Please make cheques payable to Imperial College Union

Terms of payment: within 30 days of invoice date.

Address

Organisation

Attention of

Ordered By Issued By

Z


Finance Operations


Internal charging

If you have supplied goods or services to another part of the Union and require payment, you must not issue an Invoice. This is because transfers within Clubs, Societies & Projects, Trading, or any other part of the Union will not incur any VAT. Internal charges require approving at the same level as expenditure by the people responsible for the group being charged - not the group receiving the money.

Internal charges from Clubs, Societies & Projects should be detailed on a red internal charging form, available from imperialcollegeunion.org/forms. The completed and appropriately approved forms should be handed to the Clubs & Societies Finance Administrator.

Club

CSC/FU

Net Amount NotesF F

-

-

-

-

-

-

Club

CSC/FU

Net Amount NotesF F

-

-

-

-

-

-

Segments:

Acc - Analysis Code - eg 895 for Travel

Club - Club Code - eg 001 for ACC Football

Act - Activity Code - eg 00 for day to day activites

F - Funding Code - eg 0 for Union Grant, 1 for SGI CSC/FU

DPFS

Club Act

Authorised: Date:

Acc Club Act Acc

Club HJT

Acc Club Act

From To

Imperial College Union - Internal Charging Form

Imperial College Union - Internal Charging Form

From To

Authorised: Date:

Acc Club Act

Segments:

Acc - Analysis Code - eg 895 for Travel

Club - Club Code - eg 001 for ACC Football

Act - Activity Code - eg 00 for day to day activites

F - Funding Code - eg 0 for Union Grant, 1 for SGI

Club HJT

DPFS

CSC/FU



will not meet the running costs of the Club, Society or Project. Additionally, it will not support tours. Each year the trust awards approximately £30,000.

The Imperial College Trust is a registered charity which partly fulfils its objectives of acting for the benefit of the College through the support of students and activities that would not otherwisereceive funding. The Trust provides a grant to the Exploration Board and a large contribution to the Union’s tour funding. Also in the past it has supporteddramatic productions, equipment, tours, events and activities.


Other Sources of Income

Sale of equipment

Assets (equipment) belonging to Clubs, Societies or Projects are the property of the Union. Before you sell, lend or dispose of any of this equipment you must first obtain permission from the Deputy President (Finance & Services) who will determine an appropriate value after consultation with the Finance Team.

Events

For more information on the financial aspects of events, take a look at the booklet on Event Budgeting. Events can be a very profitable way of making money for your group, but also have the potential for large losses.

College Funds

It is possible to obtain grants for your Club, Society or Project from a number of College funds. There are two funds which are strong supporters ofthe Union and its Clubs, Societies or Projects.

The Harlington Grants Committee has been accumulated from money received from gravel extraction at Harlington Sports Grounds. The grants from the Harlington Trust are awarded to Clubs, Societies & Projects to support any type of activities, not just sport. The committee helps finance new or improved facilities and equipment but

Finance Operations


Which income code to use?

Code What this code should be used for?

What this code should not be used for?

Donations (430) Genuine donations to your Club, Society or Project. These should be supported by a letter or email confirming the money is a donation.

Money from sponsorship, or other income where the Club, Society or Project is required to do something in return.

Sponsorship (550) Income as a result of a sponsorship agreement, where the Club, Society or Project is doing something in return for the money.

When the money does not relate to an official sponsorship agreement.

Ticket Income (580) Money from ticket sales from an event such as a show or dinner.

Where money does not come directly from a sales or a ticketed event

Travel (590) Contributions to travel costs, for example for using a minibus or towards the cost of a coach.

Where the payments cover travel and other items, such as food or entry fees.

Goods & Services (450)

Any other income not covered by the above codes, as well as income which could be considered to be covering a mixture of the above definitions. A good example would be fees to cover a trip or tour.

Where the income is solely from one of the other categories.

The table below indicates which income code should be used for what type of income. If the type of income you have is not covered by the codes indicated, or the income is a mixture of items, you should use “Goods & Services”.


Overview

Before you consider spending any of your Club, Society or Project’s money, there are two things you should always check:1. Does your Club, Society or Project

have the necessary funds?2. Are you authorised to approve the

expenditure?

You can check if you have the necessary funds by looking at your online transaction pages, information about how to read these pages is contained within the Finance Overview booklet and eLearning.

In order to maintain some degree of control on how is spent, there are limits on the amount an Officer can authorise. A Club, Society or Project Chair or Treasurer can approve up to £20.

Anything over this amount has to be approved by a Management Group Chair or Treasurer, together with a Deputy President for items over £1000. With increasing responsibility, there is anincrease in the limit of authority. Approval of the Union’s Executive Committee and Trustee Board are requirement for expenditure or commitments over £50,000 and £500,000 respectively.

Expenditure under £5

The Union will not reimburse expenditure of less than £5, either for payments to individuals or companies. If you have an item under £5 to claim, save it to claim with your next item. We don’t consider this unreasonable; it also saves us a considerable amount in processing costs.

Getting money out of your accounts

Club, Society or Project Chair or Treasurer

Management Group Chair or Treasurer

Deputy President

Executive Committee

Trustee Board

£0

£20

£1,000

£50,000

£500,000

Finance Operations


Payments to individuals

For expenditure items under around £200 it is permitted for someone to use personal expenditure (i.e. your debit card or cash) to pay for a Club, Society or Project spend such as buying a piece of equipment, food for a trip or paying for a referee.

Once the individual has spent their money it is important they obtain a VAT receipt for the purchase. Information about VAT receipts can be found in the VAT section. If no one is content spending their own money then a purchase order should raised, and that procedure followed.

To obtain a reimbursement the person making the claim should login to http://eActivities.union.ic.ac.uk; here they can request the reimbursement and upload electronic copies of their VAT receipts. Full details of how to carry about this process are contained within the

eActivities for Finance booklet.Once a claim has been submitted to the system it must be approved online by the relevant people (see chart on the previous page). When the request for reimbursement is correctly approved the amounts will appear on the transaction pages of the Club, Society or Project in a light blue highlight, as in the example below.

Claims may be rejected by those who are responsible for approving the expenditure, either because the items being claimed for are not for Club, Society or Project business, or the receipts do not match the amount being asked for or are not of high enough quality. Details of how to approve and reject claims are also contained within the eActivities for Finance booklet. Access to the system to approve claims for reimbursement is only granted after handing a completed Financial Responsibility Form to the


Student Activities Centre, and Key Information, Finance Overview and Finance Operations training and the corresponding quizzes have been undertaken.

Throughout the approval process there are facilities to indicate who is the next officer in the approval ladder who needs to review the claim. Update information is also provided by email to the individual making the claim. Technical queries about the system should be directed to the Systems Coordinator by emailing [email protected].

Once a claim has been approved then the individual will be paid directly by

Payments to individuals cont...

automatic money transfer (BACS) within a few days. Once an amount appears on the transaction pages in a light blue highlight responsibility for making the payment has passed to the Clubs & Societies Finance Administrator, to whom queries should be directed.

This process should be a lot quicker than the systems which have been used in the past. It also means that no physical paper copies of the receipts need to provided. The original copies of the receipts need to be kept by the Club, Society or Project Treasurer and passed to their successors. They may be asked for up to seven years.

Finance Operations


Payments to individuals cont...

This flow chart is a summary for the process for making reimbursement payments to individuals.

Expenditure appears on transaction pages on

eActivities.union.ic.ac.uk

Claim passed to Clubs & Societies Finance

Administrator for payment

Carry out the purchase and obtain a VAT receipt

Person who paid must log their claim on

eActivities.union.ic.ac.uk and upload the receipt(s)

Claim is approved by the relevant student officers

Payment by online transfer directly to claimant’s

bank account

Is someone going to pay out of their own

money?

Does the group have money for the

purchase?

Raise a purchase order to a supplier and use that

method

STOP NOW!!

No

No

Yes

Yes


The ideal way of paying for items over about £200 is by agreeing credit terms with the company you are purchasing from. Prior to placing an order you should obtain a quote from the supplier and then create a Purchase Order.

A Purchase Order is a document issued by the buyer, in this case the Union, which dictates the type, quantity and agreed price for goods or services required. It contains a unique Purchase Order Number, delivery instructions, required delivery date and terms ofpayment. Purchase Orders require approval in line with the approval chart in the overview section on Getting money out of your accounts.

Acceptance of the Purchase Order is an agreement which ensures that the company will not demand payment for any extra goods or services that wereoutside the original specification. Once you have placed an order, be sure to pay the supplier within the agreed time limit.

Please note that when booking rooms within College that incur hire charges or booking fees, Purchase Order Numbers will be required.

The process for creating purchase orders and payments to companies is new for the 2011/12 academic year, so your predecessors will not have seen this information.

Creating a purchase order

Anyone who is a member of a committee of a Club, Society or Project who has completed their Key Information eLearning and quiz is able to request a purchase order. If the request is suitably approved then a physical purchase order is created.

Purchase orders can be created by navigating to eActivities.union.ic.ac.uk, logging in and following the instructions in the eActivities for Finance booklet. You will be asked to enter the quantity, amount, delivery address etc.. You will also be asked to select from a list of suppliers which have been approved by the Union.

The purchase order is in the form of a pdf document which can be downloaded, this can then be sent to a supplier by email, fax or post. This document acts as a guarantee that the Union will pay an invoice up to the amount on the purchase order when an invoice arrives.

Details of how to request and approve purchase orders is contained within the eActivities for Finance booklet.

Payments to companies

Finance Operations


Payments to companies cont...

Invoices & Pro-Forma Invoices

There are circumstances where a company will demand payment for goods or services before they are delivered. The company will then issue what is known as a Pro-Forma Invoice. When you receive this you should create a purchase order and have this suitably approved. You should then write the purchase number on the Pro-Forma Invoice and hand this to the Clubs & Societies Finance Administrator. There is no need to send the purchase order to the supplier. This invoice will be paid in the normal way. After the goods or services have been delivered, you should receive a full VAT Invoice.

Although this is not a demand for payment, it is important that this invoice is delivered to the Clubs & Societies Finance Administrator, otherwise your Club, Society or Project will be charged the gross amount on the invoice. If the supplier is willing to provide the goods on credit then you will not need to obtain a Pro-Forma, instead they will send a VAT Invoice with the goods. The VAT Invoice can then be given to the Clubs & Societies Finance Administrator as described in this section.

Creating suppliers

Currently the suppliers which appear on the drop down list in the purchase order creation screen are ones which are set up in the Union’s finance system.

Details of how to request a new supplier to be set up are contained in the eActivities for Finance booklet. You can request whichever suppliers you need to use to make your Club, Society or Project function effectively.

Paying the invoice

After the goods have been delivered or the services provided an invoice from the company will arrive. All invoices should be correctly addressed to the Union and sent to the Clubs & Societies Finance Administrator. If the invoice comes directly to the Club, Society or Project it should be passed to the Clubs & Societies Finance Administrator.

Invoices will be paid when they have been matched to the purchase order which has been created for the goods or services, when the goods or services have been delivered and within the suppliers payment terms.

It is crucial that the goods receipting process for purchase orders is followed, this is contained in the eActivities for Finance booklet.


Payments to companies cont...

This flow chart is a summary for the process for making payments to companies

Expenditure appears on transaction pages on


Invoice received by Clubs & Societies Finance

Administrator

Create a Purchase Order online using


Purchase Order is approved by the relevant

student officers

Payment by online transfer directly to bank account of the supplier by Clubs

& Societies Finance Administrator

Is someone going to pay out of their own

money?

Does the group have money for the

purchase?

Used the reimbursement to individuals method

instead

STOP NOW!!

Purchase order sent to company by Club, Society

or Project Treasurer

Goods or services received by the Club, Society or

Project

No

No

Yes

Yes

Finance Operations


Union Credit Card

The Union also has a corporate credit card which can only be used when no other method is appropriate. Reasonsto use the Union credit card include purchasing products online, when the supplier only accepts this type of payment, to secure reservations, to make use of any discounts or in an emergency.

If you require the use of the Union credit card you must complete a credit card purchase form which outlines the payment(s) to be made, and ensures the correct approval process. Purchases made via the Credit Card have to go through the same approval process as any claim – your Management Group Treasurer can help you with this.

Once you have completed the approval form, available online at imperialcollegeunion.org/forms, you must make an appointment with the Finance Manager to obtain the card and make the payment. You should allow up to a week to go through this process.

Imprests

When goods or services must be paid for by cash in hand, it is possible to obtain an Imprest which is essentially a cash advance. Imprests may only be given to a Full Member of Imperial College Union who agrees to be held personally liable for the amount advanced. The cash advance is granted and then the receipts and any remaining cash must be returned to the Union. Imprests are often used when going on tour, where cash is required for motorway tolls or accommodation, or where foreign currency is required for group purchases.

Note that Imprests can be grantedin any currency and that the Union will receive a better exchange rate than is available on the high street. If an imprest is required in sterling, the form should be completed, scanned and a reimbursement claim requested as discussed in the previous section. The completed imprest form should be used as the supporting documentation.

If an imprest is required in another currency the form should be completed and handed to the Clubs & Societies Finance Administrator, with whom the requirements should be discussed. An imprest form is shown on the following page.

Money out in other ways


imperialcollegeunion.org

Clubs & SocietiesImprest FormClub CSC/FU

Club Code Expenditure Code

Purpose

Amount Advanced Cheque No Date

Advanced to

Authorised by:

Deputy President (Finance & Services) Date

CSC/Treasurer Date

I undertake to spend this imprest only for the purposes which it has been advanced and to do so in accordance with the Union Financial Regulations and Procedures.

I undertake to return unspent moneies and suitable documentation covering expenditures made by the date stated above.

I understand that I am personally liable to Imperial College Union for this money and that the Union make take whatever steps it deems necessary to recover non-returned money or undocumented expediture from me.

I confi rm that I will be a full member of Imperial College Union until at least the return date stated above.

Signed Date

Notes

Unspent Money and Documentation to be Returned by

Money out in other ways cont...

Finance Operations


Internal Charging

Internal Transfers are a method of paying for goods or services bought within the Union. If you buy goods or services from another Club, Society or Project, or a Union outlet such as the bar it is important that you sign off this expenditure to show your authority for the payment to be taken from your accounts. This is currently a paper based process.

Generally this approval will be made using an Internal Charging Form available from the Student Activities Centre or online at imperialcollegeunion.org/forms. Essentially you are transferring money from one part of the Union to another, hence no VAT is payable on the transaction. Internal transfers as expenditure items will appear on your transaction pages mainly for payments for services from the bars, and for the use of minibuses. They generally appear around the end of the month in which the service was provided.

Money out in other ways cont...


Cheques

Historically the Union has made all payments for Clubs, Societies & Projects by cheque. This may still occasionally occur where individuals do not have a UK bank account or where companies do not accept electronic payments.

If this situation does occur then your Management Group Treasurer will be able to ensure a cheque is raised. Please note it can take up to two weeks for this to happen. The Club, Society or Project Treasurer then needs to make sure that the cheque reaches the individual or company to whom it belongs. It is crucial this happens swiftly as someone is owed this money.

Generally the Union has a large sum on its accounts relating to cheques which have been issued but which have never been taken to the bank. Items for which the cheques have not been cashed are shown on the online transaction pages in yellow, an example is shown below.It is important that Treasurers chase

Money out - queries

individuals who have not taken their cheques to the bank to do so; cheques will expire after six months.

If cheques which have been issued have been lost or accidently destroyed then you should contact the Clubs & Societies Finance Administrator to arrange for a replacement to be issued.

BACS payments

Once an item appears on the online transaction pages in light blue this means it is awaiting payment via BACS by the Clubs & Societies Finance Administrator. Once the line changes to the standard white/grey background this indicates the payment has been sent to the person’s bank account.

All queries relating to actually paying people via BACS should be directed to the Clubs & Societies Finance Administrator.

Finance Operations


Which expenditure code to use



Acts (600) Performers at an event, for example bands

Affiliation Fees (605) Costs for affiliation to external bodies such as NGBs. Any organisation’s fees which are costed here must be updated in eActivities with the affiliation details

Consumables (640) Items that would not be expected to last longer than a year

Pieces of equipment with a life expectancy of more than a year

Copyright & Royalties (725)

Copyright costs for films, plays, music etc..

Cultural Activities (650)

Expenses for hosting a cultural event or activity

Decorations (655) Decorations for an event

Entrance Fee - Competition (680)

Competition entry fees, for example sports leagues

Entrance Fee - Conference (675)

Fees for entry to a conference or meeting

Equipment purchase (685)

Costs of equipment which would be expected to last between one and five years. This equipment must be recorded on the inventory via eActivities.

Equipment hire (690) Hire costs of equipment, for example sound systems, lights etc..

Expenditure relating to the purchase or repair of equipment owned by a Club, Society or Project

The table below indicates which expenditure code should be used for what type of expenditure. If the type of expenditure you have is not covered by the codes indicated, or the income is a mixture of items, you should consult the Clubs & Societies Finance Administrator.


Which expenditure code to use cont...



Goods for resale (705)

The expenditure for items which you intend to sell on, for example club hoodies or jackets

Club/team kit which is owned by the Club, Society or Project

Ground hire (710) Costs of hiring a venue, for example a theatre, sports pitch or meeting room

Hospitality (730) Costs of food and drink, for example refreshments for an event or food for a trip

Instructors (735) Expenditure relating to instructors. These instructors should be logged via eActivities

Costs where the instruction comes as part of a package

Printing (820) Printing costs for posters, flyers, booklets etc...

Publicity (825) Publicity materials such as branded pens, logo designs or materials associated with advertising events and activities

Subscriptions (870) Subscription fees to providers, membership of a centre etc..

Anything which could be considered an affiliation

Travel expenditure (895)

Costs relating to travel, for example train tickets or car fuel

Finance Operations


Important things to remember

• Set up products in the online shop via Workbench to take payments for events and goods.

• Issue receipts for payments you accept and store the duplicates safely.

• Be wary of accepting cheques. Ensure they fulfil the criteria listed.

• Record the cheque details on the back of the paying-in slips.

• Always store money securely until it is banked.

• Never take Club, Society or Project money home with you.

• You must pay all Club, Society or Project money into the Union’s bank account.

• You must not “borrow” or pay Club, Society or Project money into your personal bank account.

Activity codes

To have an activity code created on your accounts or to change the name of one which has already been created you can use eActivities, details are contained within the eActivities for Finance booklet.

If you feel there is a feature or piece of data analysis which would be very useful to have, either just as data or online on your transaction pages please contact the Student Activities Centre. If you are passionate about changing things for the better you could always join our eActivities users group – email the Student Activities Centre if so.

Miscellany & summary


The table below consolidates all the approval and paperwork requirements for reimbursement claims of differing values.

Claim value Approvals needed Supporting paperwork

< £5 Reimbursements under £5 cannot be made

£5 - £19.99 Club, Society or Project Chair or Treasurer

Basic VAT receipt

£20 - £249.99 Club, Society or Project Chair or Treasurer ANDManagement Group Chair or Treasurer

Basic VAT receipt

£250 - £999.99 Club, Society or Project Chair or Treasurer ANDManagement Group Chair or Treasurer

Full VAT invoice

£1000 - £49,999.99 Club, Society or Project Chair or Treasurer ANDManagement Group Chair or Treasurer AND Union Deputy President

Full VAT invoice

£50,000 - £499,999.99 Club, Society or Project Chair or Treasurer ANDManagement Group Chair or Treasurer AND Union Deputy President ANDResolution of Executive Committee

Full VAT invoice

£500,000+ Club, Society or Project Chair or Treasurer ANDManagement Group Chair or Treasurer AND Union Deputy President ANDResolution of Executive Committee ANDResolution of Trustee Board

Full VAT invoice

Miscellany & summary cont...

Finance Operations


Frequently Asked Questions

There are a few things that get asked a lot over the course of a year. To make things quicker and easier, the most frequently asked questions (and their answers!) are listed below. If you are unsure of what to do, and your question is not answered below, please ask before you act!

Value Added Tax (VAT)

Q: How do we reclaim the VAT on goods or services we have purchased?A: Submit a valid VAT Receipt with claims for reimbursement. For more information, read the sections on VAT in this manual or speak to the Clubs & Societies Finance Administrator.

Q: How can we not pay the VAT on exempt income? A: Clearly describe the goods or services on the Income Form so that it can be seen that they are VAT exempt or zero rated and make sure you include the correct VAT code on the form.

Q: How can we not pay VAT on events? A: Provide full and exact details of your event in the budget you submit to the Deputy President (Finance & Services). This information can then be used to determine if your event is VAT exempt.

Q: How can we reclaim the VAT on goods purchased at a supermarket?A: Most till receipts are not valid VAT Receipts, you will probably need to go to the Customer Service Desk and request one, they must provide this by Law.

Income

Q: Am I allowed to take money home?A: No. The money is not yours so cannot be taken home with you, you must make arrangements for secure storage.

Q: Should we go to Natwest to get a new Paying-In Book?A: No, pick one up from Student Activities Centre.

Q: Should we wait for all members to pay for an event before banking the money or should it be paid in as it is collected?A: The money should be paid in as soon as it is received.

Q: Are we allowed to pay Club, Society or Project members for travel and food from the takings?A: No. Most of your takings will be VAT liable; paying members out of these takings will be considered VAT fraud. All takings should be banked first and any expenses claimed through the normal processes.

Q: Can we pay referees/coaches/DJs from the takings or money collected from members?A: No. This would be fraudulent as above. All coaches should be on a contract and should be paid under this, not cash-in-hand. Referees and DJs may be paid cash-in-hand but this cannot be done from the takings; either pay them yourselves and claim the money back or, if this is not possible, contact the Clubs & Societies Finance Administrator


in advance and ask for an Imprest to cover the costs. A receipt will always be needed from a referee or DJ regardless of if they were paid by a member and this claimed back, or paid from an Imprest.

Q: When is the deadline for submitting an Income Form after we have banked the money?A: Three working days after banking.

Q: Should Club, Society or Project members handle cash?A: This may be allowed but you will need to check with the Deputy President (Finance & Services).

Expenditure

Q: Up to what value may a Club, Society or Project officer authorise a claim?A: £20 for the Chair or Treasurer, nil for everyone else.

Q: Should we pay for goods or services first and then claim our money back? A: This depends on the amount of expenditure. We strongly discourage members from incurring large expenses (over about £200) but for less than this you can pay first and claim afterwards, just remember that it may take some time to get your money back! Any expenses over £200 should be discussed

Frequently Asked Questions cont...

Finance Operations


with your Management Group Chair or Treasurer beforehand.

Q: What can be used to back up a claim for reimbursement? A: Any of the following:• A receipt. • An invoice or Pro-Forma made out to

“Imperial College Union”. If payment is being requested to be made to a third-party (i.e. not the supplier named on the invoice, this may be a Club, Society or Project member who has already paid the invoice for example), the invoice must be stamped as paid. Invoices not made out to “Imperial College Union” are not acceptable.

• A duly authorised contract binding Imperial College Union (as with invoices, contracts between a supplier and a third-party are not acceptable).

Q: What cannot be used to back up a Claim Form? A: Any of the following:• Photocopies of any of the above,

only original documents will be accepted.

• Credit/Debit Card slips• Bank Statements

Budget Codes

Q: I don’t understand the budget coding. A: Speak to your Management Group Treasurer

Q: Is it all right not to put any codes on Claims Forms and Income Forms?A: No. If you fail to provide the correct funding codes, we will simply charge your Self Generated Income.

Club Accounts

Q: Where can I find my Club, Society or Project transaction pages?A: At https://eActivities.union.ic.ac.uk/csadmin/finance

Frequently Asked Questions cont...


Appendix 1 – Union Finance Regulations

This regulation governs all financial matters relating to the Union. Although these Regulations contain no specific sanctions for non-compliance, deliberate, negligent or repeated disregard of their provisions may result in disciplinary action being taken against the person concerned, under the terms of their employment contract with the Union, or, in the case of students, under the Union Disciplinary Procedure. Where appropriate, criminal proceedings may also be considered.

The President is ultimately responsible for the finances of the Union. The responsibility for the day-to-day administration of the finances of the Union is delegated by the President to the Deputy President (Finance and Services). Day-to-day responsibilities may be allocated by the President to suitable members of staff. The Union annual accounts shall be approved by the Trustee Board and the College Audit Committee prior to report to the College Council.

Use of Union Funds 1. The Union subvention from College, monies raised by trading outlets and

any other funds generated by Union-wide initiatives may not be used for: 1. Loans, grants or subsidies to individual students, 2. Donations or payments to persons and bodies outside the Union

except for subscriptions to national or regional student bodies approved by Council or payments for supplies and services rendered. In particular, no part of such funds shall be used to support or further the aims or activities of any body, group or campaign of a political nature, nor be paid to any voluntary body or other educational institution or any group of persons at any educational institution,

3. The benefit of individuals in any way that would not be equally available to the membership as a whole,

4. Donations to charitable causes, except where the Union authorizes fundraising events and donates the proceeds to charitable causes, provided that the object of the fundraising is made clear to the donors, or

5. Ultra vires payments as defined by the Attorney General.

Trustee Board Responsibilities 2. As established in Regulation One of the Union, the Union’s Trustee Board

Finance Operations


Appendix 1 – Union Finance Regulations cont...

shall be responsible in particular for: 1. The Union’s long term objectives and strategy, 2. The Union’s operating and capital expenditure budgets and any

significant changes in them, 3. Strategic oversight of the Union’s operations (both voluntary and

commercial), including competent management, sound planning, adequate systems of internal control, adequate accounting, risk management and compliance with statutory and regulatory procedures,

4. Personnel, particularly strategic re-organizations, 5. Health and Safety, 6. Investment or borrowing of Union funds, 7. Reviewing performance in light of the Union’s strategic direction. 3. The Trustee Board shall: 1. Approve the Union’s Annual Report and accounts, 2. Approve any significant change in accounting practices, 3. Approve any major capital project and contract which is significant

strategically or by its size, and 4. Approve the remuneration of the Sabbatical Officers and Union Operations Manager. 4. The Trustee Board shall, as established in Union Regulation 1.33, be

responsible for approving without delegation any capital project or contract valued in excess of £1,000,000.

Budgets 5. The Executive Committee shall propose a consolidated income and

expenditure budget and a capital expenditure budget for each financial year not later than the end of the summer term in the previous year.

6. The proposed budgets shall be approved by the Trustee Board, after ratification by the Council.

7. The approved budgets (or individual items within them) may be varied only with the authorisation of the President for amounts up to £5,000 and the Executive Committee for all amounts in excess of this. The President may delegate authority to vire to appropriate Officers or Committees, save that no Officer may exercise such authority in excess of the limits of authority defined in paragraphs 16 – 24 of this regulation.

8. The Executive Committee shall monitor the performance of the Union


against budget during the financial year and may review the budgets in line with forecasts.

Budget Holders’ Responsibility 9. It is the responsibility of every budget holder to ensure that expenditure

committed from his/her budget complies with the Union financial procedures. Budget holders must also ensure that the handling of income complies with the Union financial procedures.

Bank Accounts and Investments 10. Neither the Union nor any constituent part of the Union nor any individual

acting on behalf of such a part may operate a separate bank account other than that authorized in advance by the Executive Committee, in accordance with operational policy.

11. The Executive Committee shall be authorized to invest any surplus funds or reserves after taking reasonable professional advice.

Payment Authority 12. All payments (cheques and other paper/electronic financial instruments)

must be signed or otherwise authorised by a Honorary Senior Treasurer. 13. All payments for amounts in excess of £1,000 shall be counter-signed by

the President. 14. In the absence of the President, one of three other nominees may sign

on his/her behalf. 15. The Executive Committee shall approve the nominee signatures on the

recommendation of a Union Honorary Senior Treasurer and President respectively.

Limits of Authority 16. No unauthorised member or employee may sign a contract or otherwise

commit expenditure on behalf of the Union or any part thereof. 17. Expenditure up to £20 may be authorized by any financially responsible

officer on behalf of their respective Club, Society or Project. 18. Expenditure greater than £20 and up to £1000 must be authorised by any financially responsible officer on behalf of their respective Club, Society or Project, and their respective Management Group Chair or Treasurer. In the absence


Finance Operations



of any of the financially responsible officers required, the Deputy President (Finance & Services) or Deputy President (Clubs & Societies) may authorise expenditure on their behalf. 19. The Management Group Chair and Treasurer must both authorize all

expenditure above £20 and up to £1,000 from their budget. In the absence of any of the financially responsible officers required, the Deputy President (Finance and Services) or Deputy President (Clubs and Societies) may authorise expenditure on their behalf.

20. Operational managers may authorise expenditure consistent with their budgets, subject to approval by the Union Operations Manager for orders or contracts in excess of £5,000 up to £50,000.

21. The Deputy President (Finance and Services), or, in his or her absence, the Deputy President (Clubs and Soceities), shall authorise all other expenditure up to £50,000.

22. The Executive Committee shall authorise all expenditure over £50,000 up to £500,000.

23. The Trustee Board, on the recommendation of the Executive Committee, shall authorise all other expenditure.

Orders 24. Orders of goods or services shall only be placed using an Imperial

College Union order form or in accordance with a duly authorised contract.

Loans to Staff 25. Loans to staff must not be made without the written permission of

the Union Operations Manager and the Deputy President (Finance and Services). Arrangements for repayment of such loans must be put in place before the funds are advanced.

Long-Term Commitments 26. Only the President jointly with the Union Operations Manager shall

sign a contract which commits the Union to any obligation that extends beyond the current financial year. Such contracts shall only be signed with the prior written authorisation of the relevant budget holder. Such authorisations shall be made within the limits set out in paragraphs 16 –


23 of this regulation. 27. Appointments of staff (except those employed on a ‘casual’ or ‘zero-

hours’ contract basis) and any variance to their contracts shall be authorised by the Deputy President (Finance and Services) or their nominee.

Events 28. The limits of authority as defined in paragraphs 16 – 23 of this regulation

shall be applied to the total of all expenditures relating to events organised on behalf of the Union.

29. Prior authorisation shall be given in writing. Cash Holding 30. Other than trading outlets for legitimate operational purposes (as

determined by the Executive Committee), no constituent part of the Union may hold cash without the prior written authorisation of the Deputy President (Finance and Services).

31. Cash takings shall be deposited with the Union’s bankers within three working days of receipt and no expenditure may be incurred from cash receipts.

32. Members and employees may carry or hold cash or other valuables with due regard to the limits set from time to time by the Union’s insurers.

Borrowing 33. The Union shall not borrow any external funds without the prior written

authorisation of the Trustee Board. Guarantees and Indemnities 34. The Union shall not give any guarantees or indemnities without the prior

written authorisation of the Trustee Board.

Supplies on Credit 35. Goods and services may be issued on credit in accordance with approval

procedures and credit limits set by operational policy.

Inventories and Asset Management 36. The Union shall maintain a full inventory of all its assets valued


Finance Operations



(individually or in aggregate) in excess of £50. 38. It is the responsibility of all Union Officers, Club, Society or Project

Chairs and Managers to ensure that they maintain a register of such items and inform the Union Operations Manager when such items are disposed of.

39. Equipment valued in excess of £50 belonging to the Union or any constituent part thereof, shall not be sold, re-allocated or otherwise disposed of without the prior written authorisation of the relevant budget holder and the President. Authorisation shall only be granted after consultation with the Union Operations Manager by the President.

Union Honorary Senior Treasurer 40. The appointment of a Union Honorary Senior Treasurer shall be

determined by the Trustee Board on the advice of the Executive Committee and approved by the Rector or his or her nominee and he or she shall:

1. Act as a payment authority for the main Union bank accounts. 2. Ensure, on behalf of the College, that the Union Financial

regulations are observed, 3. Be a Permanent Observer of the Trustee Board, Council and

Executive Committee, 4. Ensure that all books and financial records pertaining to the Union

are submitted to the Clerk to the College Council within 45 days of the end of the financial year,

5. Be responsible for ensuring that any anomaly or discrepancy in the financial management of the Union is reported to the Deputy President (Finance and Services). If no satisfactory outcome results, the matter shall be reported to the President, and, if appropriate, to the College Internal Audit section and the Rector.

6. Exercise office for a maximum of five years.


Appendix 2 – Transaction Codes

This is comprehensive list of the codes that you may use on various items of documentation such as income forms, claim forms, purchase orders, etc.

Income CodesCode Name430 Donations550 Sponsorship580 Ticket Income590 Travel450 Goods and Services

Expenditure CodesCode Name600 Acts605 Affiliation Fees640 Consumables725 Copyright & Royalties650 Cultural Activities655 Decorations680 Entrance Fee Competition675 Entrance Fee Conference685 Equip purchase (not cap)690 Equipment Hire705 Goods for Resale710 Ground Hire730 Hospitality735 Instructors820 Printing Costs825 Publicity860 Stationery870 Subscriptions895 Travel Expenditure

VAT Codes – IncomeCode NameS1 Standard ratedS0 Zero ratedSE ExemptSN Outside Scope

VAT Codes – ExpenditureCode NameP1 Standard ratedP0 Zero ratedPE ExemptPN Outside Scope

Finance Operations


Appendix 2 – Transaction Codes cont...

Event CodesCode Name Description00 General Day-to-day transactions.21-29 Tour For example, Winter Tour.51-69 Event For example, Freshers Ball.

Funding CodesCode Name Description0 Grant Union money allocated by your Management Group1 Self Generated Money generated through your own activities Income2 Harlington Money from the Harlington Grants Committee3 IC Trust Money from the IC Trust4 Faculty Grant Money from a College Faculty for a specific purpose

Consolidation CodesCode Name Description0 External Outside College and the Union1 College Outside the Union, within College2 Internal Within the Union


Appendix 3 – Management Group Contacts

These positions are held by students who volunteer their time to carry out these roles.

Group Chair TreasurerACC Henry Abbot

[email protected] [email protected]

A&E Chandana [email protected]

Henry Whittaker [email protected]

CAG Heather [email protected]

Lucy [email protected]

CGCU Tsz Shing [email protected]

Patrick [email protected]

GSA Robert [email protected]

Georgios [email protected]

ICSMSU Florence Chamberlain (Clubs & Societies Officer)

[email protected] [email protected]

Media Charles [email protected]

Frank [email protected]

OSC Wenjun [email protected]

Theodoros [email protected]

RAG Jack [email protected]

Akhila [email protected]

RCC Dominic [email protected]

Gareth [email protected]

RCSU Luke [email protected]

Karmen [email protected]

RSMU Richard [email protected]

Alexander [email protected]

SCC Kajann [email protected]

Rebecca [email protected]

Silwood Francisca [email protected]

Isabel [email protected]

Finance Operations


Appendix 4 – Other useful contacts

Michael [email protected] President (Finance & Services)

Michael is responsible for finances. He can help with budget approvals and transactions. He is also responsible for approving all expenditure over £1000

Monya [email protected] President (Clubs & Societies)

Monya is the lead sabbatical for non-financial matters for Clubs, Societies & Projects, though she can also approve finance things in Michael’s absence

Ally [email protected] Coordinator

Ally is responsible for eActivities, speak to him if you discover an error, after reading the eActivities for Administration and eActivities for Finance booklets

Alex [email protected] Services Manager

Alex is responsible for the Union’s buildings and Workbench, please read the Operating Workbench booklet before raising any questions with him

Aziz [email protected] & Societes Finance Administrator

Aziz is responsible for administering finances of Clubs, Societies & Projects. Read the Finance Overview and Finance Operations training though.

Mayuri [email protected] Manager

Mayuri can assist with complex finance queries and financial planning.

Joe [email protected] Manager

Joe acts as a signatory in the abence of the President and is in charge of all the staff in the Union.

There are various people who work for the Union or who are Sabbaticals who have a role in finances.

Imperial College UnionBeit QuadranglePrince Consort RoadLondon SW7 2BB

Tel: 020 7594 8060Fax: 020 7594 8065Email: [email protected]: @icunionimperialcollegeunion.org

Finance Operations v2.2

Documents

Transcript of Finance Operations v2.2