Financial Services

Expenditure

Further information

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This section of the Finance Manual sets out the policies and procedures to be followed by all University staff involved in purchasing goods or services on behalf of the University to ensure that practices are ethical and sound and that good value for money is achieved.

The policies and procedures outline the minimum standards that all University staff are expected to achieve in their use of University expenditure transactions.

  1. Overview
  2. Policy
  3. Variations

Overview

The underlying principle of the University’s purchasing policy is that the procedures and methods used should both be, and be seen to be, beyond reproach. Therefore, the University must give suppliers the opportunity to compete for its business in an open and transparent manner. To maintain and protect a reputation for fair dealing in the University’s arrangements with suppliers, staff must ensure that the best value for money is the outcome to be sought in all transactions.

Legislative requirements

The University must comply with the financial administration, accounting, controls, management, auditing and reporting requirements of a number of acts and regulations. These are identified within the Financial Responsibility Policy.

Operational issues

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Policy

University funds are any funds held in any University Project Grant, regardless of the funding source. All University funds are considered to be public monies and must be treated in accordance with the Financial Management Act 2006 (FMA). Therefore, the University is obliged to ensure, through enforcement of its policies and procedures, that all expenditure satisfies the requirements of the FMA in relation to the following:

  • efficiency and economy of operations
  • due financial consideration in avoidance of waste and extravagance
  • effectiveness of accounting systems.

It is the University’s policy that:

  • Expenditure is considered appropriate and can be paid from available resources.
  • Staff conduct business in a manner that respects the rights of suppliers and avoids conflict.
  • There is a commitment to the achievement of the best purchasing outcomes for both ourselves and our suppliers.
  • Purchasing processes must not only be fair, but be seen to be fair.
  • Those staff who deal directly with suppliers must:
    • recognise and deal with conflicts of interest
    • deal with suppliers even-handedly
    • protect the confidentiality of commercial information
    • ensure that their processes are open and transparent
    • not engage in misleading or deceptive conduct
    • not transact with suppliers for private or unauthorised use
    • not compromise the University’s standing or integrity of its purchasing activities through the acceptance of gifts or hospitality
    • be scrupulous in their use of public property.

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Variations

Unless the operational issues pages provide specific information to the contrary, the Head of School or Cost Centre may request a variation to the provided guidelines if they give rise to undue hardship and/or inappropriate inconvenience.

In the hierarchical reporting structure, the Dean or higher officer, on receipt of a written request detailing the nature of the undue hardship/inconvenience and the compensating audit control, may approve variation to the guidelines.

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