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the governing body and finance
The Governing Body and Finance
The CUC Guide has a list of the financial responsibilities of the governing body:
- Ensuring the solvency of the institution and safeguarding its assets;
- Approving the financial strategy. A clear and well-understood strategy is very important in difficult times;
- Approving annual operating plans and budgets, which should reflect the strategic plan;
- Ensuring that funds provided by the Funding Council are used in accordance with the terms and conditions specified in the Funding Council Financial Memorandum (see HEFCE Model Financial Memorandum);
- Ensuring the existence and integrity of risk management, control and governance systems and monitoring these through the Audit Committee; and
- Receiving and approving annual accounts (audited financial statements).
The Chartered Institute of Public Finance and Accountancy (CIPFA) identifies three key financial tasks:
- Securing stewardship, with an emphasis on probity and control;
- Supporting performance, ie responsiveness to customers and being effective and efficient; and
- Enabling transformation, being strategic and pro-active
The governing body also has the key role of measuring and monitoring financial performance.
The vital point which follows from these statements of responsibilities is that it is the whole board that has a collective responsibility for ensuring financial health, and that this is not something that can be left to the finance committee, still less to the executive. Of course, the board's job is to govern and not manage, but it has ultimate responsibility, and all individual governors need to feel capable of exercising it even though they may not be financial specialists.
More information [PDF, 56Kb]
Conference Report: 'Satisfying the Governors and Convincing the Regulators' - May 2011
Powerpoint presentations:
Relating to the Role of Governors in Ensuring the Financial Health of the Institution
Examining National Data on HEI Finances and Ensuring that you have Data to ensure the Financial Health of Your HEI - Andrew McConnell, Director of Finance, University of Huddersfield
Delivering HE Finances in the new HE Economy - Andrew McConnell, Director of Finance, University of Huddersfield
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