E.5
ARRANGEMENTS FOR BANKING, CASH AND CHEQUES
E.5.1 Banking Arrangements
The University’s Bankers are appointed by Council. The Director of Finance shall be
responsible for the implementation and maintenance of satisfactory banking arrangements
with the University’s Bankers. No other person shall open or operate a bank account either in
the University’s name or utilising funds which belong to the University, including the
operation of self financing courses and grants for specific purposes.
E.5.2. Cheques and Cheque Signatories
All cheques up to the value of £10,000 shall require one pre-printed signature. Cheques in
excess of £10,000 shall require a second manual signature. The individuals empowered to
provide the second signature, provided that they have not instigated the payment, are listed in
Section E.17.2. The Director of Finance is responsible for the ordering of cheques and for the
security of unused cheques.
E.5.3 Petty Cash
On application from Heads of Colleges/Schools/Departments, the Director of Finance may
make available to Colleges/Schools/Departments such imprests as are considered necessary
for the disbursements of petty cash expenses, such as postages and other small incidentals.
Such expenses shall not exceed £35 on a single transaction, unless prior permission has been
provided by the Director of Finance.
Reimbursements of petty cash shall be claimed using the approved departmental petty cash
voucher which should be signed by an authorised signatory. Colleges/Schools/Departments
should continue to maintain departmental petty cash books and associated records. Relevant
receipts should be attached to the copy petty cash voucher and retained in the department for
Audit Inspection.
Original claim forms should be brought to the Finance Department for reimbursement.
Claimants will be expected to sign a receipt form upon collection of any monies.
Petty cash accounts must not be used for travelling and subsistence purposes over £5 except
as agreed in advance by the Director of Finance
Each department must ensure the security of the petty cash and that access to the petty cash is
restricted to authorised staff. When an authorised petty cash float holder is replaced Finance
must be notified immediately so that the internal register can be updated with the
replacements.
At the financial year end, the Director of Finance will require a validation certificate of
balances held from each petty cash holder (See Section F, F – E.5.3.1) and this is to be
returned within five working days.
Petty cash floats which are no longer required by departments must be repaid at the earliest
opportunity to the Cash Office.
The theft or suspected misuse of petty cash funds must be reported immediately to the
Director of Finance or a senior member of the Finance Department and the Joint Internal
Audit Unit.
The use of petty cash for personal advances or encashment of personal cheques is prohibited.
The use of petty cash for gifts or personal payments to staff is prohibited.
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E.5.4 Use of Cash Tills
All departments using a till must be issued with a copy of the University’s standard till
control procedures. Departments should contact the Finance Department and request a copy
when a till is put into use. A copy of the procedures are contained in Section F (F – E.5.4).
The Head of Department or nominee must confirm that each procedure is in place and
identify which members of staff are responsible for operating the procedures.
Departmental cash income routines may periodically be reviewed to ensure that procedures
are being complied with.
E.5.5 Opening of Cheques for Cash
Whenever possible, the opening of cheques for cash should be avoided. However, the
following guidelines should apply:Cheques may be opened for cash:i.
ii.
iii.
where departments need to distribute small sums to students etc. instead of drawing
cheques e.g. Refund of Laboratory Deposits or payments to students for participating
in experiments etc. (Full receipted details including signatures must be returned to
Finance)
where departmental visitors from abroad, who do not have UK bank accounts need to
be reimbursed for expenses etc. Cheques should be made payable to the visitor
concerned. Departments must ensure such requests arrive in time for the relevant
payments run. Cash payments from the Cash Office are not permissible
where the recipient does not have a UK bank account
Cheques may not be opened for cash in any other instance unless approved by the
Director of Finance.
Departments requiring cash for other approved activities may apply in writing to the
Director of Finance. Such requests must be sent at least three days in advance of the
date required.
In those circumstances cheques may be made payable to cash, drawn and held in the
Cash Office pending payment.
Cash and Travel advances to be returned must be done through the departmental
banking within 3 working days
The regulations relating to cash advances are contained in Section E.8.16.
All payments must be covered by receipts from the spending departments normally
within fourteen days of collection.
E.5.6 Cash Receipts
Employees receiving cash and cheques in the course of their duties shall be required to remit
all monies and / or bank in full, within 7 working days of receipt.
E.5.7 Treasury Management
1.
The Swansea University has adopted the following four key recommendations of
CIPFA’s Treasury Management in the Public Services: Code of Practice (the Code)
2001, as described in Section 4 of that code.
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Public service organisations should put in place formal and comprehensive
objectives, policies and practices, strategies and reporting arrangements for the
effective management and control of their treasury management activities.
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Their policies and practices should make clear that the effective management and
control of risk are prime objectives of their treasury management activities
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They should acknowledge that the pursuit of best value in treasury management,
and the use of suitable performance measures, are valid and important tools for
responsible organisations to employ in support if their business and service
objective; and that within the context of effective risk management, their treasury
management policies and practices should reflect this.
In order to achieve the above, the University has:
i) Adopted the four clauses in section 5 of the code (see below).
ii) Adopted a treasury management policy statement as recommended in section 6
iii) Followed the recommendations in section 7 concerning the creation of Treasury
Management Practices
“It is CIPFA’s view that throughout the public services the priority is to protect
capital rather than to maximise return. The avoidance of all risk is neither appropriate
nor possible. However, a balance must be struck with a keen responsibility for public
money.” The University strongly endorses this view.
2.
The University has adopted:

a Treasury Management policy statement, which is contained in the financial
policies and procedures (see below)

Treasury Management practices (TMP’s), which set out the manner in which it
seeks to achieve its policies and objectives, how it will manage and control its
Treasury Management activities (see Section F – E.5.6)
3.
The Finance Committee will receive appropriate reports on Treasury Management
policies, practices and activities.
4.
The University delegates responsibility for the implementation and monitoring of its
treasury management policies and practices to the Finance Committee, and for the
execution and administration of treasury management decisions to the Director of
Finance, who will act in accordance with the organisation’s policy statement and
TMP’s (and the CIPFA’S standard of Professional Practice on Treasury
Management).
Policy Statement
The University has adopted the following definition of treasury management:
“The management of its cash flows, its banking, money market and capital market
transactions; the effective control of the risks associated with those activities; and the pursuit
of optimum performance consistent with those risks”.
The University regards the successful identification, monitoring and control of risk to be the
prime criteria by which the effectiveness of its Treasury Management activities will be
measured. Accordingly, the analysis and reporting of treasury management activities will
focus on their risk implications for the organisation.
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The University acknowledges that effective treasury management will provide support
towards the achievement of its business and service objectives. t is therefore committed to
the principles of achieving best value in treasury management, and to employing suitable
performance measurement techniques, within the context of effective risk management.
E.5.8 Borrowing
All borrowing undertaken by the University will be in accordance with the Treasury
Management Policy Statement (see Section F – E.5.6).
E.5.9 Investments - Short Term
The Director of Finance, as advised by the Finance Committee is responsible for making
arrangements for the short term investment of cash balances held on behalf of the University.
The limit for investment with any one organisation shall be determined by the Finance
Committee. All investments will be in accordance with the Treasury Management Policy
Statement (see Treasury Management Policy, F – E.5.6)).
E.5.10 Anti-Money Laundering Policy
The University’s anti-money laundering policy can be found at F - E.5.10.
August 2014