G/1.1 Financial management

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1.1.1 Accountability and management
1.1.2 Legislative environment
1.1.3 Funding allocation and distribution
1.1.4 Financial functions, powers and authorities of the University
1.1.5 Responsible officers
Related Documents
Modification History

1.1.1 Accountability and management

Subject to accountability requirements specified in the relevant legislation, Council as the governing body of QUT is responsible for the management and control of the finances of the University (Section 9, Queensland University of Technology Act 1998) . This includes responsibility for the adoption and review of a budget for the University (Section 54, QUT Act ) . Although Section 11 of the QUT Act permits Council to delegate certain of its powers and authorities, Council may not delegate its duties in relation to the annual adoption of a budget and the approval of the spending of funds available to the University by way of bequest, donation or special grant.

In accordance with its statutory requirements, the University

• prepares annual financial statements following the close of each financial year, certified by the Chancellor, the Vice-Chancellor and the Executive Director, Finance and Resource Planning
• submits annual financial statements to the Auditor-General
• prepares and maintains a Financial Management Practice and Procedures Manual of policy and procedures for the University's accounting and internal controls
• prepares and submits to the appropriate State Government Minister within four months of the close of the financial year an annual report which includes a copy of the audited annual financial statements.

Planning and Resources Committee is the University's senior financial and resource planning body. The Committee is empowered, on Council's behalf, to approve revisions to budgets and formulate policy on investment management. Planning and Resources Committee assists and advises Council on financial and resource planning for the University and receives advice in turn from the Executive Director, Finance and Resource Planning, regarding the educational profile, strategic plans, resource allocation, and performance. Planning and Resources Committee also receives advice on the asset management plan, the implementation and administration of the financial operations of QUT including investment of funds, payroll, accounts and purchasing, and public accountability requirements.

Audit and Risk Management Committee assists and advises Council on risk management and audit related matters, including the performance or discharge of functions and duties under the Financial Administration and Audit Act 1977 , the Financial Management Standard 1997 and the University's Assurance and Risk Management Services Charter.

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1.1.2 Legislative environment

The financial management of the University is governed by

• its enabling legislation - the Queensland University of Technology Act 1998 (QUT Act)
• the Financial Administration and Audit Act 1977
• the Financial Management Standard 1997 issued in terms of the Financial Administration and Audit Act 1977
• the Statutory Bodies Financial Arrangements Act 1982 and the Statutory Bodies Financial Arrangements Amendment Act 2003.
• the Higher Education Support Act 2003

The accounting concepts and standards used by QUT are in accordance with the Australian equivalent International Financial Reporting Standards (AEIFRS).

The University's accounts are audited by the Auditor-General of Queensland in accordance with Section 73 of the Financial Administration and Audit Act. Members of the University community are responsible for assisting with the satisfactory conduct of the audit as necessary and for complying with the legislative requirements.

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1.1.3 Funding allocation and distribution

Under the Commonwealth Grant Scheme (CGS), the Australian Government contributes funding toward the cost of an agreed number of student places. Contribution amounts are determined on a discipline basis.

A three year formal funding agreement is negotiated between the Department of Education, Employment and Workplace Relations (DEEWR) and each higher education provider, and is reviewed annually. The Funding Agreement contains information about the number of Commonwealth supported places, their type (eg undergraduate targets), intended discipline distribution and the amount of CGS funding for the year.

The Australian Government uses the Institution Assessment Framework (IAF) as part of its accountability framework. The IAF is founded on the responsibilities of the Commonwealth to ensure that the institutions it funds are sustainable and deliver the outputs for which they are funded, that their outcomes are of a high quality, and that they comply with their legal obligations.

Additional Commonwealth funding is available through grants for a variety of purposes. These include:

• capital development
• collaboration and reform
• substantial support for specific research projects with grant funds channelled through other agencies, for example, the Australian Research Council (ARC). Such agencies award grants to the University for use by individual members of staff or a research team for a project approved by the granting agency (see section D/1.1.5 )
• grants to enhance teaching and learning
• grants for purposes such as promotion of equal opportunity, Aboriginal and Torres Strait Islander participation projects and projects of national priority, and
• grants for unspecified research or other purposes.

Internally, funds are distributed on a monthly basis across QUT based on the Consolidated Budget, updated for the June and September Reforecast. The Triennial Budget development is tied closely to the University's planning process and is approved by Council before the end of the year prior to its implementation.

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1.1.4 Financial functions, powers and authorities of the University

QUT is a body corporate, has a seal, and may sue and be sued in its corporate name. Under the QUT Act, the University may

• enter into contracts
• acquire, hold, dispose of, and deal with property
• appoint agents and attorneys
• engage consultants
• fix charges, and other terms, for services and other facilities it supplies
• establish or administer trust funds.

In addition to its main teaching, research and service functions, the University is also empowered to exploit commercially any of its facilities or resources for the benefit of the University.

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1.1.5 Responsible officers

The Vice-Chancellor, as chief executive officer, is responsible to Council for all aspects of the institution's management, including its financial affairs. The Vice-Chancellor is assisted in this duty by the following direct reports:

• the Registrar - for administrative aspects
• the Executive Director, Finance and Resource Planning - for planning, resource allocation and financial management.

The Executive Director, Finance and Resource Planning, is responsible for ensuring that the accountability obligations of QUT are met, and is designated as the University's principal finance officer.

Heads of individual responsibility centres are responsible for the efficient and effective management of all funds under their control and are bound by the policies and practices set down by QUT in line with its financial obligations.

Appendix 3 identifies financial responsibilities, delegations and signing authorities.

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Related Documents

QUT Act 1998

MOPP A/2.2 University planning framework

MOPP Appendix 3 - Schedule of Authorities and Delegations

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Modification History

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