Manual of Policies and Procedures

G/3.4 Borrowings

Contact Officer

Executive Director, Finance Resource Management

Approval Date

09/12/2009

Approval Authority

Council

Date of Next Review

01/12/2012

3.4.1 Policy Statement
3.4.2 Borrowings
3.4.3 State government borrowings program
3.4.4 Records and reporting
Related Documents
Modification History

3.4.1 Policy statement

QUT may borrow, with the approval of the Treasurer of Queensland, in accordance with Part 5 of the Statutory Bodies Financial Arrangements Act 1982.

The principles applying to borrowings are as follows:

  • Council, following recommendation from Finance and Planning Committee, recommends all borrowings to the Treasurer of Queensland for approval via the relevant Government Department
  • borrowings must be in Australian currency and undertaken in Australia
  • borrowings will generally be from Queensland Treasury Corporation (QTC), with any guarantee or conditions being approved by the Treasurer of Queensland
  • funds required to meet borrowing repayments are to be accounted for in the triennial budget and commitments are to be reported in the University's Financial Statements
  • the University's liquidity level is to be maintained at all times to meet all reasonably anticipated operating cash flow requirements of the University, as and when they fall due; and
  • total borrowings should be a mixture of fixed and floating interest rates wherever practicable.

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3.4.2 Borrowings

Borrowings may be approved in the following limited circumstances:

  • to further the University's research activities and to commercialise intellectual property
  • to support the Asset Management Program
  • to address unexpected shortfalls in cash flows (limited to the QTC Working Capital Loan Facility on 30 day terms).

The Executive Director, Finance Resource Management has delegated authority to approve access to funds from the QTC Working Capital Loan Facility for up to 30 days and within pre-approved limits.

All other borrowings require Council approval following recommendation from Finance and Planning Committee. Such recommendations are to include a detailed business case clearly identifying the benefits of the loan, including a detailed cash flow projection prepared on a discounted cash flow basis.

All borrowings are approved within the context of the published University Consolidated Budget and Capital Management Plan.

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3.4.3 State government borrowings program

QUT has access to loan arrangements through Government funding programs (eg Smart State Research Facilities Fund, State Borrowing Program for Universities) which adhere to the borrowing principles listed above. Specific terms and conditions relating to these loans are available from the Executive Director, Finance Resource Management.

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3.4.4 Records and reporting

The Executive Director, Finance Resource Management ensures that all borrowings are recorded in a central register and that source documents are safeguarded.

The Chief Financial Officer provides a status report on borrowings as part of the quarterly report to Finance and Planning Committee.

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Related Documents

MOPP G/3.2 Investments

MOPP Appendix 3 Schedule of Authorities and Delegations

Financial Management Practice and Procedures Manual

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Modification History

Date

Sections

Source

Details

10.07.18 All Vice-Chancellor and President Revised policy to include department name change from Corporate Finance to Finance Resource Management

09.12.09

All

Council

Revised policy

19.06.08

All

Acting Executive Director, Finance and Resource Planning

Policy reviewed – no change required

14.12.05

All

Council

New policy (endorsed by Planning and Resources Committee 14.11.05)

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