What is the financial code of practice?

This is the current version of this document. To view historic versions, click on the 'Historic Versions' tab above.

(1) This Policy sets the minimum financial standards of conduct to be followed by Victoria University employees, contractors, associates, students and Council members in their financial dealings on behalf of the University.

Section 2 - TEQSA/ASQA/ESOS Alignment

(2) HESF: 6.2.1 Corporate Monitoring and Accountability

(3) Standards for RTOs: Standard 7.2 Assessment of Financial Viability Risk

Section 3 - Scope

(4) This Policy applies across the University.

Section 4 - Definitions

(5) Nil.

Section 5 - Policy Statement

(6) This Financial Code of Conduct (the code) sets the minimum financial standards of conduct expected from all people involved in any financial transaction aspect at the University. If any of the provisions contained within this Financial Code of Conduct are not fully understood, individuals should seek clarification from their line managers.

(7) Employees, contractors, Council members and students are expected to act at all times in the university's best interest and should conduct all dealings with integrity and fairness.

(8) The University may apply disciplinary procedures against employees, contractors, or students in breach of this code. Instances of non-compliance with this code may be reported to the Chief Financial Officer or equivalent for further action as appropriate.

Part A - Public Funds

(9) The University acknowledges the responsibility it has for the administration of public funds. The University emphasises to the public, the Government, and its employees, contractors, Councillors and students the importance it places upon propriety, financial control and honest administration.

(10) In accordance with the University's Information Security Policy, authentication credentials used to validate an individual's identity, such as passwords, private keys or tokens to access University systems, must not be shared or provided to any person.

(11) The University has measures in place to prevent and detect fraud and corruption, and suspected irregularities will be investigated. All University staff must report known and suspected instances of corrupt, improper or criminal conduct through the University's appropriate reporting mechanisms, like those outlined in the University's Fraud and Corruption Control Policy and Public Interest Disclosures Policy.

(12) Where persons have direct responsibility for financial transactions, they must be fully acquainted with the Standing Directions of the Minister for Finance pursuant to Section 8 of the Financial Management Act 1994 (Vic) and comply with these where applicable, and where not applicable, still refer to them for guidance on good business practice.

(13) In addition, the authorisation of financial transactions must be in accordance with the University's Delegations and Authorisations Policy, Financial Delegations Schedule, Purchasing Policy and Procedure, and the Contracts Policy and Procedure.

Part B - Compliance with Finance Policies and Procedures

(14) All University staff and any other person authorised to transact financial business on behalf of the University must familiarise themselves with, and comply with, all the University's Finance Policies and Procedures. Non-compliance with Finance Policies and Procedures may result in sanctions that could include:

1. the removal of a person's access to the University Finance System;
2. the withdrawal of a person's financial delegation;
3. the suspension and/or cancellation of a person's credit card; and/or
4. disciplinary action.

Part C - Declaration of Financial and other interests

(15) Persons involved in any financial business of the University must declare any personal interests (conflict of interests), which may affect or be affected by a University transaction.

(16) Actual, potential, or perceived conflicts of interest must be managed in accordance with the University's Appropriate Workplace Behaviour Policy and Procedure.

Part D - Financial Inducements, Gifts and Hospitality

(17) The giving and acceptance of any gifts is to be in accordance with the University's Appropriate Workplace Behaviour Policy and the University's Gifts, Benefits and Hospitality Policy and Procedure.

Part E - Tendering and Procurement Process

(18) All tendering and procurement activity must be compliant with the University’s Purchasing Policy and Procedure.

(19) All university corporate credit cards usage must be compliant with the University’s Purchasing (Credit) Card Policy and Procedure and the University’s Purchasing Policy and Procedure.

Part F - Use of Property, Facilities or Equipment

(20) Employees, contractors, students and Councillors of the University often have access to facilities and assets used in carrying out their official duties.

(21) Excessive personal use of any Victoria University equipment or removal of any property except mobile telephones from the workplace for any purpose is not permitted without appropriate line manager approval. This permission can form part of a standing agreement (e.g., a Work at Home plan). Refer to Part B of the IT Appropriate Use Policy and IT Hardware and Software Policy for further information.

(22) Any use of University facilities or assets with the primary intention of personal gain or profit is not permitted under any circumstances.

(23) Finance, Facilities and IT all have procedures in relation to the use of facilities and assets. Staff must be familiar and compliant with the various University Policies and Procedures in relation to the use of facilities and assets as issued from time to time and as shown in the University's Policy Library. Currently, relevant policies are listed in the Supporting Documents and Information section of this Policy.

Part G - University Income Streams

(24) In keeping with its commitment to ethical, social and governance factors in investment (refer to the Investment Policy), the University is committed to maintaining income streams consistent with its strategic, ethical and socially responsible objectives.

Part H - Confidentiality

(25) Staff, contractors, students and University Councillors are expected to maintain and respect the confidentiality and privacy of financial information and other matters of a financial nature that they come across during the course of their roles. Unless authorised by an appropriately delegated officer, no one uses confidential information for personal reasons or to benefit a third party.

Section 6 - Procedures

(26) Financial Code of Conduct - Bank Accounts Procedure

(27) Financial Code of Conduct - Commercial Debtors Procedure

(28) Financial Code of Conduct - Fringe Benefits Tax (FBT) Procedures

(29) Financial Code of Conduct - GST (Goods and Services Tax) Procedure

(30) Financial Code of Conduct - Independent Contractor Procedure

(31) Financial Code of Conduct - Receipting and Banking of Monies Procedure

(32) Financial Code of Conduct - Related Parties Disclosure for Victoria University and its Subsidiaries Procedure

Section 7 - Supporting Documents and Information

(33) Click here to view these references –

1. Accounts Payable Processes Procedure
2. Acquittal Reporting Procedure
3. Attractive Items Procedure
4. Balance Sheet Ledger Account Reconciliation Procedure
5. Electronic Fund Transfer Procedure
6. General Journal Procedure
7. PAYG No ABN Withholding Tax Procedure
8. Payment of Staff Reimbursement & Per Diem Entitlements Procedure
9. Petty Cash Procedure
10. Prepayments Procedure

4.1.    All University employees and any other person authorised to transact financial business on behalf of the University must familiarise themselves and comply with this policy, the Procurement Policy (MPF1087), Contracts Policy (MPF1247), and relevant supporting processes.

4.2     Business-related expenses incurred by University staff or students will be recorded, managed, approved and periodically audited to ensure accountability and probity is maintained.

4.3.    Non-compliance may result in sanctions that could include:

(a)    the removal of a person's access to the University’s finance or other systems;

(b)    the withdrawal of a person's financial delegation;

(c)    the suspension and/or cancellation of a person's credit card, and prevention from applying for its reissue; and/or

(d)    disciplinary action under the relevant disciplinary instrument.

4.4.    Instances of non-compliance with this policy must be reported to the Chief Financial Officer (CFO) and Director Risk and Assurance for further action as appropriate.

4.5.    Employees, contractors, students, Council and other committee members are expected to act at all times in the best interest of the University and should conduct all financial dealings with integrity and fairness.

4.6.    The University acknowledges the responsibility it has for:

(a)    the proper use and management of both public and private funds for which the University is responsible;

(b)    establishing, and maintaining effective internal control systems over financial transactions and dealings;

(c)    identifying and managing financial risks;

(d)    maintaining proper accounting records and systems, and other records, in accordance with state government regulations and directions;

(e)    establishing and maintaining measures to minimise and manage the risk of fraud, corruption and other losses; and

(f)    compliance with external reporting and other information provision requirements.

4.7.    Where persons have direct responsibility for financial transactions, they must be acquainted and comply with University processes derived from relevant sections of the Standing Directions of the Minister for Finance pursuant to Section 8 of the Financial Management Act 1994.

4.8.    All persons must report known and suspected instances of corrupt, improper or criminal conduct as outlined in the Appropriate Workplace Behaviour Policy (MPF1328) as amended from time to time.

4.9.    The giving and acceptance of any gifts must be in accordance with the University'sAppropriate Workplace Behaviour Policy (MPF1328).

410.    All tendering and procurement activity must be compliant with the University’s Procurement Policy (MPF1087).

4.11.  All users of University facilities and resources must comply with the University’s Property Policy (MPF1115) and Provision and Acceptable Use of IT Policy (MPF1314).

5.5.    Excessive personal use of any University equipment or removal of any property, except the removal of mobile telephones or assigned laptop computers and tablets, from the work place for any purpose is not permitted without appropriate line manager approval. This permission can form part of a standing agreement (eg a work at home plan).

5.6.    Assets classified as either of the following must be recorded in the University’s asset register:

(a) an attractive item (< $10,000); or

(b) a capitalised asset ($10,000+).

5.7.    Assets which do not meet either criterion are not recorded on the University’s asset register.

5.8.    Accounting for Assets must be in accordance with the Australian Accounting Standards.

5.9.    Assets funded from external sources for research projects are owned by the University unless an exception exists.

5.10.   Before purchasing equipment or plant, consideration must be given to training, site requirements and compliance with Australian standards as detailed on the health and safety website.

5.11.    Assets are disposed of in accordance with University processes. Methods of disposal may include:

(a)   sale;

(b)   loss;

(c)   transfer;

(d)   donation; or

(e)   destruction / disposal as waste.

5.12.    An officer authorised under the Delegations Framework must approve disposal of capitalised assets and attractive items.

5.13.    Assets funded from external sources that are subject to externally imposed rules and conditions relating to ownership, may only be disposed of in accordance with those rules and conditions.

5.14.    The transfer of an asset to another institution, as a result of the transfer of the researcher, will be in accordance with this policy.

5.15.    When assets are sold, the division must:

(a)    approve the sale in writing;

(b)    ensure the buyer is not the authorising officer for the sale;

(c)    estimate and document in writing the item's market value for audit purposes and provide reasons if sold for less than this value;

(d)    ensure payment is received before the asset is released; and

(e)    ensure that where the sale of an asset is to an external party that the item is subject to goods and services tax (GST).

5.16.    If an acceptable sale offer is not received, then the item/s may be donated on recommendation of the head of division to:

(a) institutions having similar aims to the University; or

(b) not for profit organisations and charities.

5.17.    An asset is regarded as being lost if it is stolen, destroyed or misplaced and must be written off in accordance with University processes.

5.18.    Disposal of certain items of plant and equipment fall under the Occupational Health and Safety Regulation 2007 (Vic) Part 3.5 - Plant and the procedures under this regulation must be followed when disposing of such plant and equipment.

5.23.    The University has a range of income streams, such as but not limited to:

(a)    course fees and charges;

(b)    funding from Government;

(c)    research income;

(d)    commercial income including rental income, consulting activities and other fee for service arrangements;

(e)    investment income; and

(f)     philanthropic income.

5.24.    Income is recognised by its source in the finance system. Please see the Student Loans, Fees and Charges Policy (MPF1325) for detail on student-related income and the Research Funding, Costing and Pricing Policy (MPF1347) for detail on research-related income.

5.25.    Where a contractual or donor obligation exists, interest earned is credited to the respective research, gift or other project or, in the case of a donor obligation, for the benefit of the gift’s stated purpose.

5.26.    Interest earned on research funds is paid to the research body only where it is a condition of the granting body.

5.27.    The University may issue a University credit card to a staff member if it determines that the staff member requires the credit card for business-related expenses, taking into account the staff member’s position and responsibilities.

5.28.    A staff member will not be issued with more than one credit card.

5.29.    A staff member who is issued a University credit card (cardholder) must:

(a) use their University credit card only for business-related expenses;

(b) comply with the terms and conditions of the credit card outlined by the issuing bank, as well as relevant University policies and processes; and

(c) ensure that expenses incurred on their credit card are reconciled within the timelines prescribed in the relevant University processes.

5.30.    The University will reimburse staff and students for business-related expenses which were using cash or other private payment methods, provided that a claim for reimbursement is lodged within the period prescribed by the associated process.

5.31.    The University will not reimburse:

(a) payment to contractors or individuals for their labour from personal funds; or

(b) expenses incurred for goods and services which should be purchased through prescribed University purchasing channels, such as purchase orders or University credit cards.

Gift means the same as defined under the Gift Policy (MPF1348).

Gift governance record means the same as defined under the Gift Policy (MPF1348).

Business-related expense means an expense incurred in the course of undertaking University business, on the University’s behalf.

Head of division means the Vice-Chancellor, the Head of University Services or the dean of an academic division.

Research income is received from a number of sources, such as competitive grants, contract research and joint ventures (including centres) and may include consultancies. Research income is allocated for the primary purpose of supporting research projects.

Trust means the same as defined under the Gift Policy (MPF1348).

University credit card, or credit card, means a credit card issued by the University to a staff member in accordance with this policy and associated processes.