1. Background

1.1. The University of Exeter is a chartered corporation and received its Royal Charter in 1955 having previously been the University College of the South West (from 1922). The University merged with St. Luke’s College of Education in 1978 and the Camborne School of Mines in 1993. Its structure of governance is laid down in the instruments of its incorporation, the charter and statutes, which can only be amended by the Privy Council. The University is accountable through its governing body (Council), which has ultimate responsibility for the University’s management and administration.

1.2. The University is an exempt charity by virtue of the Charities Act 1993 and does not therefore have to register with the Charity Commissioners.

1.3. The Financial Memorandum between the funding body (Higher Education Funding Council for England and Wales, “HEFCE”) and the University sets out the terms and conditions on which grant is made. Similarly the funding agreement with the Training and Development Agency for Schools (TDA) sets out the terms and conditions of funding in respect of its grant allocations. The Council of the University is responsible for ensuring that conditions of grant are met. As part of this process, the University must adhere to HEFCE’s Accountability and Audit: HEFCE Code of Practice, which requires it to have sound systems of financial and management control. The HEFCE Assurance Service reviews the systems of internal control, corporate governance and risk management within the University. The Financial Regulations of the University form part of this overall system of accountability.

1.4. Compliance with the Financial Regulations is compulsory for all staff connected with the University. A member of staff who fails to comply with the Financial Regulations may be subject to disciplinary action under the University’s disciplinary policy. Council will be notified of any such breach through the Audit Committee.