UCL
Introduction
Conducting due diligence for a proposed new partner, or when preparing to renew an existing academic partnership when the period of the Memorandum of Agreement is coming to an end, is important for ensuring that UCL enters into or remains in partnership with an appropriate organisation. Due diligence provides a range of key types of information about another organisation, especially financial status, standing and reputation of the partner organisation. Information gained from conducting due diligence when entering into a new partnership will help with understanding the risks of the proposed collaboration. For an existing partnership conducting due diligence on a periodic basis will help ensure that UCL continues to collaborate with an appropriate partner organisation.
Guidance on conducting due diligence
For any proposed new teaching-related collaboration with a partner organisation, from either the public or private sector, due diligence checking must be conducted.
This will help manage risk and determine whether or not a new collaboration should be pursued or an existing collaboration continued with and the Memorandum of
Agreement renewed.
The extent of due diligence required will depend on the nature of the academic activity, in terms of the anticipated role and responsibilities of the partner. Full due diligence must normally be conducted for private organisations, whether in the UK,
EU mainland or overseas (although a streamlined approach for UK private organisations where a less than full approach may be adopted). A streamlined approach to due diligence may be undertaken where the partnership is with another
UK university or Government-led proposed partner organisation. Advice on the process should be obtained from the Academic Standards and Quality Manager,
Academic Services (details at https://www.ucl.ac.uk/srs/our-services/academicservices/staff ).
Collaboration with other organisations within the federation of the University of
London can also be approached through the streamlined due diligence process.
For existing partnerships, due diligence must be conducted as part of the renewal process. This would normally be undertaken in the year before a Memorandum of
Agreement is due to expire. Other criteria for conducting due diligence with an
1

existing partner organisation prior to expiry of the Memorandum of Agreement include:

Change of ownership of the organisation

Merger with another organisation

Financial issues with the partner organisation, including non-payment of fees to UCL

Change in senior staff, for example, Chief Executive Officer, Principal

Partner organisation entering into collaborative arrangements with another higher education organisation (UK, EU mainland or overseas) which might compete with the partnership with UCL

Significant change in the nature of the collaboration, which may be identified on the Responsibilities Checklist, for example, from a flying faculty to a dual or double degree arrangement

Relocation to new premises or significant expansion of existing premises

Report by an external body which indicates significant issues with management of academic standards or the quality of learning opportunities offered to students.
For any of the criteria identified above or other changes not mentioned but which may have a significant impact on the collaborative arrangement, advice and discussion should be had with the Academic Standards and Quality Manager,
Academic Services (details at https://www.ucl.ac.uk/srs/our-services/academicservices/staff ). This will help with deciding whether or not due diligence should be undertaken. It is the responsibility of the academic lead for the collaborative partnership to be aware of any changes, including those identified above, at the partner organisation and notify both their Head of Department and Academic
Services in a timely manner.
Due diligence checklist
The due diligence checklist is divided into three sections: financial, organisational and learning opportunities arrangements. Evidence for each item on the checklist should be sought from the partner organisation and be available should it be required by UCL, e.g. for review purposes. The evidence should be indicated in the appropriate column on the checklist.
For each item of evidence obtained a judgement will be made concerning acceptability to UCL; this judgement process will be co-ordinated by Academic
Services in liaison with colleagues from Legal Services as required. This should be indicated as ‘acceptable’ or ‘further information required’ as appropriate. Where evidence is regarded as not acceptable further information should be sought from the partner organisation or a decision not to proceed any further with the proposed partnership taken. Comments should be provided for ‘further information required’ judgements if the due diligence is to be presented for approval with one or more items in the checklist in this manner.
Once completed, the checklist plus supporting evidence should be submitted to
Academic Services along with the approved New Academic Partnership Proposal form, Responsibilities Checklist and Risk Assessment and (if appropriate) Business
Case and Site Visit Checklist. These documents will be considered by the Academic
Partnership Review Group.
Adapted for UCL by CE, V2 July 2015
2

UCL
Name of partner organisation ………………………………………………………………………..
Nature of the business of the organisation …………………………………………………………
Location (country and city) ……………………………………………………………………………
Name of key contact at partner orga nisation ……………………………………………………….
Role ………………………………………………. Email address ………………………………
UCL contact information
Name of academic lead at UCL ……………………………………………………………….
Role ………………………………………… Academic Department ……………………………
National and legal landscape due diligence (for non-UK organisations)
Category of evidence Obtained Acceptability* How will any risk be mitigated?
1. Will it be easy to carry out business in the country?
Yes/No
Yes/No e.g. Acceptable/
Further information required
2. Does the country have a robust legal system which is compatible with UK law??
3. Will foreign judgements associated with the activity be enforceable?
4. Will UK judgements associated with the activity be enforceable?
Yes/No
Yes/No
3

5. Are there any cultural or political differences to consider?
6. Are there any visa or tax requirements associated with this country?
7. Are there any controls on capital or currency entering or exiting the country?
8. Will UK legal agreements/contracts be enforceable in the country?
9. Does the country have its own quality assurance agency or system?
10. Will the qualification obtained be recognised in the partner country?
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Category of evidence
Financial due diligence
Obtained Acceptability* How will any risk be mitigated?
1. Evidence of legal status and confirmation that the organisation can contract with UCL
Yes/No Acceptable/
Further information required
2. Three years of audited accounts
3. Current budget statement
4. Sources of income
5. Banker’s reference, where appropriate
6. Details of professional indemnity insurance cover
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Organisational due diligence
Category of evidence Obtained Acceptability* How will any risk be mitigated?
4

1. Mission statement
2. Strategic Plan
3. Annual Report (if applicable)
4. Degree-awarding powers
(if applicable) including joint degree-awarding powers
(also if applicable)?
5. Holder of Tier 4 license (if applicable)?
6. Prospectus and other publicity
7. Institutional structure, constitution and governance
8. Memorandum of Articles of Association (if applicable)
9. Certificate of Incorporation
(or equivalent) (if applicable)
10. Potential conflicts of interest between UCL and the proposed partner organisation
11. Adherence to ethical business, anti-corruption and anti-bribery policies and legislation, including the
Bribery Act 2010
12. Are there internal financial and other organisational controls designed to prevent bribery and other corrupt practices
(for example, separation of duties in finance department,
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No e.g. Acceptable/
Further information required the requirement for second authorising signatory prior to transmission of funds, internal and external audits etc.)?
Learning opportunities due diligence
1.Quality assurance policies and procedures
2. Student support policies
Yes/No
Yes/No
5

3. Teaching and learning strategy (or equivalent)
4. Learning resources strategy
5. Staff recruitment and development policy
6. CVs of staff who would be teaching/supporting students on the programme
7. Equal opportunities policy
8. Administrative staffing structure
9. Admissions, examinations and student record policies, systems and procedures
10. Evidence of organisation’s awareness and understanding of UK higher education
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
11. Reports from funding or external validating or quality bodies (where relevant)
12. Details of other HEIs with which the proposed partner also has collaborative arrangements with or has done so in the past
Yes/No
Yes/No
13. Details of any existing or previous collaboration between
UCL and the proposed partner organisation.
Yes/No
Name of proposer ………………………………………. Academic Department ………………….
Signature of proposer ………………………………………………… Date ………………………..
Approved/not approved by
Signature of the Vice-Provost (Education & Student Affairs)/Pro-Provost (Doctoral School)
……………………………………….. Date ……………………..
6