Directorate of Finance

Finance Procedures Manual

2014
Guidance on the responsibility for and
accountability of University funds, monies and
resources, including general practices and
procedures in specifi instances or on the
occurrence of specific events.
 Finance Procedures Manual 2014

Table of Contents
Foreword 8
Acknowledgement 9
Chapter 1 – Introduction 11
1.1 Makerere University 11
1.2 Mandate of the University 11
1.3 Legislative environment 12
1.4 Financial Control Environment 12
1.5 Financial Management Responsibility 13
1.6 Purpose and use of this Financial Management
Practice and Procedures Manual 13
1.7 Interpretation and Review of the Financial Management
Practice and Procedures Manual 14
Chapter 2 Governance 15
2.1 Vision 15
2.2 Mission 15
2.3 Key Financial Management Roles and Responsibilities 15
2.3.1 The University Council 15
2.3.2 The Audit Committee of Council 15
2.3.3 The Finance planning and Administration Committee
(FPAC) of Council 16
2.3.4 Management Committee 16
2.3.5 The Accounting Officer (University Secretary) 16
2.3.6 The University Bursar 16
2.3.7 Principals / Directors / Deans/ Heads of Departments (HoDs) 17
3.1.1 Roles and Responsibilities 20
3.1.2 Budget process 20
3.1.3 Corporate level budget development 21
3.2 Strategic Planning 22
3.3 Annual Budget Planning 22
3.2.1 Strategic plan review 22
3.2.2 Estimation of Internally Generated Revenue 23
3.2.3 Government appropriation 23
3.2.4 Allocation of resources to units 23
3.2.5 Detailed Budgeting at Units 24
3.2.6 Consolidation of Budgets 24

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3.2.7 Budget approvals 24

3.2.8 Budget implementation and monitoring 24
3.2.9 Budgetary control 25
3.2.10 Virements 25
3.2.11 Supplementary funding 26
Chapter 4 Financial operations 27
4.1 Chart of Accounts 27
4.1.1 Changes to the Chart of Accounts 29
4.2 Accounting Entries 29
4.3 Revenue and Accounts Receivable 29
4.3.1 Student Financial Services 30
4.3.1.1 Billing for Tuition and functional fees 30
4.3.1.2 Students statements 30
4.3.1.3 Payments and updating of statements 31
4.4 Government Subvention Revenue 31
4.4.1 Wage Revenue 31
4.4.2 Non Wage and Development Revenue 32
4.5 Donor Revenue 32
4.5.1 Accounting for Grant Receipts 32
4.5.2 Currency of Grants Receipts 32
4.5.3 Foreign Exchange 32
4.5.4 Requisition for Funds 33
4.6 Staff Advances 34
4.6.1 Request for advances 34
4.6.2 Authorization/Approval of Advance 35
4.6.3 Recording Advances 35
4.6.4 Accounting for Advances 35
4.6.5 Accounting for Refund 36
4.7 Non staff Cash advances 36
4.7.1 Write-off of Bad debts/Advances 36
4.8 Procurement and Accounts Payable 36
4.8.1 Key Procurement Documentation 36
4.8.2 Payments 38
4.8.3 Petty cash Payments 38
4.8.3.1 Imprest system 39
4.8.3.2 Request for Petty Cash 39
4.8.3.3 Retiring Petty Cash 39

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4.8.3.4 Cash Counts 40

4.8.3.5 Recording of Petty Cash 40
4.8.3.6 Banking Intact Proceeds 40
4.8.3.7 Petty Cash Replenishment 40
4.8.4 Accounts payable 40
4.8.5 Borrowings 41
4.8.5.1 Approvals 41
4.8.5.2 Records and reporting 42
4.9 Bank Accounts 42
4.9.1 Bank information 42
4.9.2 Bank Documentations 42
4.9.3 Bank Transactions 43
4.9.4 Cash Book 43
4.9.5 Bank Reconciliation Statements 44
4.10 Payroll 44
4.10.1 Updating of Payroll 44
4.10.2 Payroll Deductions and remittances 44
4.10.3 Funding of the Payroll 44
4.11 Inventory Management 44
4.11.1 Procedures for stores management 45
4.11.2 Stock take/Inventory Count 45
4.12.1 Fixed Assets & Intangible Assets Management 45
4.12.1 Fixed Assets Accounting 46
4.12.2 Leasing of assets 47
4.12.4 Fixed Assets Disposal 47
4.12.5 Loss of Fixed Assets 48
4.12.6 Insurance of Assets 48
4.14 Financial Reporting 49
4.14.1 Monthly Financial Statements 49
4.14.2 Quarterly and annual financial Statements 49
Chapter 5 Financial Information Software 50
5.1 Working Environment 50
5.2 Access and Security (Control Environment) 50
Chapter 6 University Accounting Policies 51
6.1 General Information 51
6.2 Accounting Policies 51
6.2.1 Basis of preparation 51

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6.2.2 Reporting currency and translation of foreign currencies 51

6.2.3 Reporting Period 52
6.2.4 Revenue 52
6.2.5 Expenses 53
6.2.6 Property, Plant and Equipments (physical assets or
fixed assets) 54
6.2.7 Receivables 54
6.2.8 Inventories 55
6.2.9 Projects expenditure 55
6.2.10 Investments 55
6.2.11 Cash and Cash Equivalents 55
6.2.12 Borrowings 55
6.2.13 Employee Benefits 56
6.2.14 Contingencies 56
6.2.15 Commitments 56
Chapter 7 Financial system of checks and controls 57
7.1 Assets 57
7.1.2 Cash Assets 57
7.1.3 Receivables 57
7.1.4 Credit notes 58
7.1.5 Write-off of debt 58
7.1.6 Inventories 58
7.1.7 Other financial assets 58
7.1.8 Property, plant and equipment PPE 58
7.1.9 Insurance of assets 59
7.2 Liabilities 59
7.2.1 Borrowings 59
7.2.2 Pension liabilities 59
7.2.3 Payables 59
7.3 Revenues 59
7.3.1 Grants 59
7.3.2 Transfers from Government 59
7.3.3 Non-Tax Revenue 60
7.3.4 Other Revenues 60
7.4 Expenses 60
Chapter 8 Appendices 61
Appendix 1 Bank Account Opening 61

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Appendix 2: Change of Signatories to University/ Project Bank Accounts 63

Appendix 3: Budgeting Process 64
Appendix 4: Budgeting Procedure 66
Appendix 5: Budget Implementation 68
Appendix 6: Accounting for Advances 70
Appendix 7: Staff/Student Claims 72
Appendix 8: Payment of Fees by Student 74
Appendix 9: Student Payment – Special Faculty Allowance 76
Appendix 10: Other Student Allowances 78
Appendix 11: Students’ Refund 80
Appendix 12: Suppliers’ Payment 82
Appendix 13: Payment of Salaries 84
Appendix 14: Statutory Payments 86
Appendix 15: Processing of DAP Payments 88
Appendix 16: Payment of Pensioners 90
Appendix 17: Payment of Contract Gratuity 92
Appendix 18: Receipts Outside the ITS System 94
Appendix 19: System Based Receipts 96
Appendix 20: Cash Payments Less than UGX 5,000 98
Appendix 21: EFT / RTGS Payments 100
Appendix 22: Cheques / Drafts Payments 102
Appendix 23: Accounts/ Government Subvention 104
Appendix 24: Appropriation in Aid (AIA) 106
Appendix 25: Year-end Processes (Closing of Accounts) 108
Appendix 26: Year-end Processes (Annual Financial Statements) 110
Draft Financial Management Policies 112
Budget Policy 114
Policy on Financial Management 118
Policy on Asset Management 121
Policy on Borrowing 125
Policy on Expenditure of University Funds 126
Policy on Private or Un-Official Expenditure 128

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Foreword
Makerere University recognizes its obligation to manage public funds and to account in
respect of the existing Laws, Rules and Regulations that regulate the operation of Public
Universities and Tertiary Institutions and those as issued by the Ministry of Finance
Planning and Economic Development (MoFPED).

We introduce to you the Financial Management Practices and Procedures Manual that
will guide the way business shall be conducted in Makerere University. This updated
manual takes account of all revisions to the Government of Uganda Chart of Accounts,
Financial Reporting formats and Monitoring of Government expenditure, all aimed at
improving transparency and accountability for utilization of public funds.

We hope that Management and staff of Makerere University will find this Manual help-
ful. Any issues arising out of this manual shall be forwarded to the University Bursar for
action where necessary.

Finally, we would like to thank the senior staff, consultant and all stakeholders who have
participated in various capacities to ensure this manual is completed. We thank you for
your contribution and commitment to this cause.

Prof. John DumbaSsentamu

Vice Chancellor
Makerere University

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Acknowledgement
The activity of producing the University Finance Mannual was carried out by GTX & Co.
Ltd who were hired by the University.

A team of 10 persons (all University staff) was nominated to review the contents of the
manual and they together with the Consultant made tremendous contribution in the
production of the final output. These are: Assoc. Prof. Arch. Barnabas Nawagwe (Ph.D),
Deputy Vice Chancellor (Finance & Administration); Mr. David Kahundha Muhwezi,
University Secretary; Ms. Denorah Nalule, Ag. University Bursar; Dr. Florence Nakayiwa,
Director, Planning and Development; Mr. Evarist Bainomugisha, Manager, Finance and
Administration; Ms. Jackie Keirungi Ayorekire, Assistant Bursar (Admin); Mr. Teefe Paul,
College Bursar, College of Health Sciences; Mr. Peter Mubiru, Chief Cashier and; Mr. Wal-
ter Odoch, Assistant Accountant.

The above individuals played an important role by providing materials and technical
support for this manual. The team is also indebted to the Makerere University Manage-
ment and in particular the Vice Chancellor, Prof. John Ddumba Ssentamu for the invalu-
able advice they gave throughout the process of producing this manual.

Gratitude goes to the Secretariat, who made enormous sacrifices by working late hours
to meet the deadline.

Lastly, to all the University staff who attended the various workshops and made contri-
butions, thank you very much!

Assoc. Prof. Arch. Barnabas Nawangwe (Ph.D)

Deputy Vice Chancellor (Finance and Administration).

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Makerere University

List of acronyms
AIS Accounting Information System
BCC Budget Call Circular
BFP Budget Framework Paper
DRAGT Directorate of Research & Graduate Training
DVC F & A Deputy Vice-Chancellor Finance & Administration
EFT Electronic Funds Transfer
GAAP Generally Accepted Accounting Practice
GoU Government of Uganda
GRN Goods Received Note
HoD Head of Department
IFRS International Financial Reporting Standards
IPSAS International Public Sector Accounting Standards
LPO Local Purchase Order
LST Local Service Tax
MoES Ministry of Education and Sports
MoFPED Ministry of Finance Planning and Economic Development
MTEF Medium Term Expenditure Framework
NTR Non Tax Revenue
PAYE Pay As You Earn
PDU Procurement & Disposal Unit
PFAA 2003 Public Finance and Accountability Act 2003
PPDA Public Procurement and Disposal Act
UB University Bursar
UOTIA 2001 Universities and Other Tertiary Institutions Act 2001
URA Uganda Revenue Authority
US University Secretary
VAT Value Added Tax
WHT Withholding Tax

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Chapter 1. Introduction
1.1 Makerere University

Makerere University was established in 1922 as a technical school, and is one of the oldest
and most prestigious Universities in Africa. The University transitioned from the Faculty-
based to the collegiate system on 1stJuly 2011 and as of 30thDecember 2011, Makerere
University officially transformed into a Collegiate University with 9 Constituent Colleges
and one School, operating as semi-autonomous units of the University. The University
has several administrative units that support its core activities.

1.2 Mandate of the University

It is the responsibility of every officer of Makerere University to ensure maximum

transparency and integrity of the University’s financial transactions and systems, Subject
to accountability requirements specified in the relevant legislation, The University
Council as the governing body of Makerere University is responsible for the management
and control of the finances of the University (UOTIA 2006). This includes responsibility
for the adoption and review of a budget for the University. Although the UOTIA permits
Council to delegate certain of its powers and authorities, Council may not delegate its
duties in relation to the annual adoption of a budget and the approval of the spending of
funds available to the University by way of bequest, donation or special grant.

In accordance with its statutory requirements, the University

• Prepares annual financial statements following the close of each financial year,
certified by the Chairman of Council, the University Secretary and the University
Bursar
• Submits annual financial statements to the Auditor-General
• Prepares and maintains a Financial Management Practice and Procedures Manual
of policy and procedures for the University’s accounting and internal controls
• Prepares and submits to the appropriate Minister in charge of Higher Education
within four months of the close of the financial year an annual report which
includes a copy of the audited annual financial statements.

The Mandate of the University as derived from Section 24(2) of the Universities and
Other Tertiary Institutions Act, 2001 - UOTIA (as amended), is:
i. The provision of higher education, promotion of research and advancement of
learning;
ii. Dissemination of knowledge and giving opportunity of acquiring higher education to
all persons including persons with disabilities wishing to do so regardless of race,
political opinion, color, or sex; and
iii. The provision of accessible physical facilities to the users of public university.

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1.3 Legislative environment

Makerere University is a body corporate, has a seal, and may sue and be sued in its
corporate name. Under the UOTIA, the University may:
• enter into contracts
• acquire, hold, dispose of, and deal with property
• appoint agents and attorneys
• engage consultants
• fix charges, and other terms, for services and other facilities it supplies
• Establish or administer trust funds.
• In addition to its main teaching, research and service functions, the University
is also empowered to exploit commercially any of its facilities or resources for the
benefit of the University.
• The financial management of the University is governed by:
• Enabling legislation - the Universities and Other Tertiary Institutions (UOTIA)
Act, 2006
• The Financial Accountability Act 2009
• The Financial Accountability Regulations 2009
• The Makerere University College Statute, 2011

The accounting concepts and standards used by Makerere University are in accordance
with the Government of Uganda Financial Reporting Standards
The University’s annual financial statements and internal controls framework are audited
by the Auditor-General in accordance with the Auditor-General Act 2009 and Financial
and Performance Management Standard 2009. Members of the University community are
responsible for assisting with the satisfactory conduct of the audit as necessary and for
complying with the legislative requirements.

1.4 Financial Control Environment

In accordance with the Act, Makerere University has a Council;

(a) The University Council shall in relation to its functions:

(i) Receive gifts, donations, grants or other moneys and make disbursements as
may be required, on behalf of the University
(ii) Approve the University budget proposals and the final accounts submitted by
Management
(b) The University Council shall within a period of three months before the end of
each financial year, make and submit to the Minister for approval, estimates
of the income and expenditure of the University for the next ensuing year
(UOTIA Section 62).

(c) The University Council shall keep or cause to be kept books of all income and
expenditure and proper records in relation to them (UOTIA Section 63 subsection

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(1)). Subsection (2) states, The University Council shall cause to be prepared at
the end of each financial year, a statement of financial position and a state
ment of income and expenditure during the financial year.

(d) The University Council shall ensure that within three months from the end of
each financial year, a statement of accounts is prepared and submitted to the
Auditor General for auditing (UOTIA Section 64 (2)

1.5 Financial Management Responsibility

The University has a legal, statutory and ethical obligation to ensure all financial
activities are conducted in an efficient, economical and appropriate manner, including
timely and accurate recording and reporting of fund movements, security of assets and
the maintenance of adequate controls.
The University is therefore required to develop, maintain and adhere to policies,
procedures and guidelines in a manner that ensures the reliability and accuracy of
financial management information, thereby ensuring the financial management and
administrative obligations of the University are satisfied

1.6 Purpose and use of this Financial Management Practice and

Procedures Manual

As a background cite the current legal framework for financial management, existing
manual and the demand for the new manual

Sound business practices and stewardship principles call for each member of Makerere
University College and staff to be accountable for safeguarding and preserving the
assets and resources of the University, and for accurately recording the transactions
of the University for the purposes of appropriately reporting to constituents including
students, parents, donors, sponsors, and other interested parties. This document has been
developed to provide further guidance on the proper accounting for transactions. While
it is impossible to address every conceivable situation that may arise, this manual should
provide a framework for College and staff to draw upon in their day to day activities.

The following policy statements pertain to all business activities of the University and
are applicable to all members of the College and staff. Supervisors are responsible for
familiarizing their staff members with this policy. While certain tasks may be delegated
to staff directly involved in processing transactions, accountability cannot be delegated.
The person delegating tasks remains responsible for proper performance of those tasks.
This Financial Management Practice and Procedures Manual is intended to promote
accountability and responsibility to all University staff especially those who have
financial responsibility. It is also designed to provide its users with procedures and
mechanisms for compliance in financial matters within the University’s legal, statutory,
reporting and audit requirements.

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This Financial Management Practice and Procedures Manual will provide detailed,
information necessary to plan, execute, account, and report on the University’s financial
operations. This Financial Management Practice and Procedures Manual is in line with
the relevant University policies, explains important financial management processes,
and identifies responsible officials and offices that perform or monitor the financial
management functions of the University and their primary responsibilities.
This Financial Management Practice and Procedures Manual apply to all staff, students,
and agents of the University especially those who conduct, manage, or oversee activities
relating to the financial resources of the University.

1.7 Interpretation and Review of the Financial Management Practice and

Procedures Manual

When additional guidance or interpretation of a specific part of this Financial Management

Practice and Procedures Manual is required, the College Bursar shall be consulted and if
need be the University Bursar too shall be consulted. The University Bursar shall also
be consulted when an issue arises which is not addressed by the Financial Management
Practice and Procedures Manual.

The Financial Management Practice and Procedures Manual shall be reviewed as and
when the need arises. Suggested amendments to the Financial Management Practice and
Procedures Manual shall be submitted in writing to the University Bursar. The ultimate
amendments / revisions to this Financial Management Practice and Procedures Manual,
at any one time, will be approved by the University Council.

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Chapter 2. Governance
2.1 Vision

To be the leading institution for academic excellence and innovations in Africa.

2.2 Mission

To provide innovative teaching, learning, research and services responsive to National

and Global needs.

2.3 Key Financial Management Roles and Responsibilities

The core financial management responsibilities within the University’s internal control
environment are managed mainly in the structures below:

Policy and oversight

2.3.1 The University Council

2.3.2 The Audit Committee of Council
2.3.3 The Finance planning and Administration Committee (FPAC) of Council
2.3.4 The Management committee
2.3.5 University Secretary
2.3.6 University Bursar
2.3.7 Principals/Directors/Deans/Heads of Department (HoDs)

2.3.1 The University Council

The Council is the supreme organ of the University and as such, shall be responsible for
the overall administration of the University and ensuring the due implementation of the
objects and functions of the University. Without prejudice to the generality in section
(40) sub section (1), of the Universities and Other Tertiary Institutions Act, Council shall;

i. Be responsible for the direction of the administrative, financial and academic

affairs of the University;
ii. Formulate the general policy of the University;
iii. Give general guidelines to the administrative and academic staff of the University
on matters relating to the operations of the University.
iv. Do anything and take all necessary decisions conducive to the fulfillment of the
objects and functions of the University.

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2.3.2 The Audit Committee of Council

The Audit Committee of Council is tasked with

i. Representing Council in providing oversight of the University’s risk management

practices.
ii. Approving the Director Internal Auditor’s Annual-year audit plan.
iii. Reviewing the effectiveness of the University’s practices related to monitoring its
financial performance, compliance with applicable laws and regulations.
iv. Reviewing the effectiveness of the University’s Internal Controls.

The Vice-Chancellor, as Chief Executive Officer, is responsible to Council for all aspects
of the institution’s management, including its financial affairs. The Vice-Chancellor is
assisted in this duty by the following:

• The Deputy Vice-Chancellor (Finance and Administration)

• The University Secretary – for financial control and accountability
• The University Bursar - for planning, resource allocation and financial management.

2.3.3 The Finance planning and Administration Committee (FPAC) of Council

The Finance planning and Administrative Committee is the University’s financial and
resource planning body. The Committee is empowered, on Council’s behalf, to approve
revisions to budgets and formulate policy on investment management. Finance Committee
assists and advises Council on financial and resource planning for the University and
receives advice in turn from the University Secretary, regarding the educational profile,
strategic plans, resource allocation, and performance. Finance Committee also receives
advice on the asset management plan, the implementation and administration of the
financial operations of Makerere University including investment of funds, payroll,
accounts and purchasing, and public accountability requirements.

The FPAC provides technical advisory services to Council on issues related to financial
management as the Council may require from time to time.

2.3.4 Management Committee

The management Committee considers and recommends to FPAC various issues that have
financial implications for onward recommendation to Council accordingly.

2.3.5 The Accounting Officer (University Secretary)

The University Secretary, is responsible for ensuring that the accountability obligations
of Makerere University are met.

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The roles of the University Secretary are:- The roles should take into consideration the
letter of Accountant General for appointment of Accounting Officer.

i. Responsible for the general administration of the University, including the custody
of the seal and administration of its assets.
ii. Secretary to the University Council; and
iii. Accounting officer of the University.
iv. As accounting officer the University Secretary shall ensure in particular-
v. That adequate Control is exercised over the incurring of Commitments;
vi. That effective system of internal controls and internal audit are in place in respect
of all transactions and resources under his or her control.

2.3.6 The University Bursar

The University Bursar shall be responsible for the financial administration and planning
of the University and his or her key roles are:-
i. To maintain the accounts in a form determined by the University Council.
ii. Coordinating the University’s annual financial accounting and reporting.
iii. Overseeing the University’s daily performance of financial transactions.
iv. Ensuring that the University’s Financial Management Practice and Procedures
Manual is kept up-to-date.
v. Identifying, maintaining, and documenting financial policies and procedures.
vi. Ensuring that all internal controls for financial operations promote and support
the professional standards of the accounting profession, applicable
statues and regulations, and the University mission.
vii. Designing internal controls for financial operations that promote the efficiency and
effectiveness of University business operations.
viii.Ensuring that all internal controls for financial operations promote and support
the goals, objectives, and procedures set forth in the Financial Management Practice
and Procedures Manual.
ix. Implementing new Governmental Accounting Standards.
x. Verify that adequate internal controls are established over processing of financial
transactions affecting the school or administrative department. Internal controls
include segregating duties, limiting both physical and data access to individuals
who need such access to perform their responsibilities, and monitoring and
evaluating financial results as outlined below.
xi. Verify that periodic reports of account activity are reviewed to determine that
all charges and entries are accurate and complete. The review must include
a comparison of budget to actual results where applicable, and trends or areas
of concern must be identified. For significant deviations from expected results,
the variance must be investigated and reasons documented, along with any
necessary corrective action plan.
xii. Verify that all entries made to each revenue and expense account have been
properly allocated and that transactions represent activities that pertain

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to the purpose of the account. In the case of restricted accounts, verify that all
transactions comply with donor-imposed restrictions on the use of funds.
xiii.Take appropriate and timely action to correct any improper charges allocated
to a cost center or research project/task by notifying the Comptroller’s Office.
All notifications should be made to the University Secretary, unless the transaction
pertains to a sponsored research project. Notification for research adjustments
should be made to the Manager of Grants University Bursar’s Office.
xiv. Verify that all charges to governmental and other restricted sponsoring agency
accounts are appropriate and allowable under the sponsor’s regulations.

2.3.7 Principals / Directors / Deans/ Heads of Departments (HoDs)

Principals, Directors and Heads of Business Unit are responsible for conducting their
activities in a manner consistent with good internal control. They shall ensure compliance
with GoU, University and donor requirements in the use of resources. These responsibilities
include:
i. Directing the manner in which their college, directorate, department or school
conduct, manage, and account for, and reports on their financial activities.
ii. Identifying strategic objectives for their college, directorate, department or school.
iii. Assessing the risks to achieving their objectives.
iv. Constructing annual budgets that incorporate their means of achieving strategic
objectives and mitigating unacceptable risks.
v. Explaining budget variances from expected budget conditions.

The role of Principals in relation to financial management includes

responsibility for:

• Academic leadership and management of the college

• Co-ordination of academic planning and resource allocation to schools and
departments and such other academic units and services within the college
• Preparation and presentation of college submissions for resources and the
resultant administration of these resources
• Adherence by the College/Schools/Departments and other units within the
college to all statutory, legal and audit requirements and associated University
policies
• Provision of advice to the Vice-Chancellor on matters relating to the college.
• The authority of the Principal extends to all resources and staffing matters
within the college, with the exception of those matters determined centrally.

The responsibilities of Colleges/Halls/Administrative and other Business Units

relating to financial management include:
• Preparation and submission of estimates of the annual operating needs of the
Business Unit for staff, maintenance, equipment and research support
• Preparation and submission of estimates of annual recurrent expenditure and

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non-recurrent expenditure
• Preparation of the Business Unit budget for allocation of available resources
within the Business Unit
• Planning and conduct of operations in an appropriate manner in order to
ensure income is sufficient to cover all operating costs and liabilities
• Ensure all assets controlled, financial records maintained and
management practices used are in accordance with
approved procedures and policy directions of the University
• Ensure all liabilities incurred are limited to the financial authorities of the
delegated officers concerned.
• Ensure delegations are exercised with due prudence and in the best interests
of the University in accordance with the University’s financial delegation policy
• Observe the financial policies, procedures, directions of the University as
promulgated in instruments such as University circulars, committee minutes
and the Finance Manual ensure taxation liabilities for goods and services,
fringe benefits, and all other allowances are properly recognized and statutory
record keeping requirements are met.

Financial Accounting Policies, Procedures and Guidelines responsibilities of

Colleges/Schools/Business Units

• Ensure staff is trained in their financial administrative responsibilities,

including the use and contents of the University’s Financial Management
Practices and Procedures Manual.
• Ensure the University’s Financial Management Practices and Procedures
Manual is used as the main reference on financial accounting policies
and procedures.
• Consult University Bursar for advice on areas outside the scope of the
University’s Financial Management Practices and Procedures Manual.
• Advise University Bursar of particular areas in the University’s Financial
Management Practices and Procedures Manual where additional information,
clarification or specific training is required

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Chapter 3. Budgeting
Makerere University, as a statutory authority established under the Universities and Other
Tertiary institutions Act 2006, is required to undertake planning, budgeting and reporting
in accordance with the following legislation:

• Finance Act
• Public Finance and Accountability Act 2003 Uganda
• Education budgeting framework and ministerial statement should be part of
this legislation

The University prepares and manages its budget in conjunction with the annual strategic
planning process. The budget is based on estimates provided by each responsibility
centre and its purpose is to deliver the approved plans of colleges, administrative units
and institutes. Detailed accrual budgets are prepared as five distinct programs:

• Operating - revenue and expenditure of all units relating to teaching, support

activities and central overhead commitments
• Research and External Services - research training and institutional grants
schemes, research infrastructure (derived either from central allocations out
of operating funds or from external sources) and external revenue for specific
research, consulting, testing or continuing education projects
• Asset Management - the major building program, maintenance programs,
University minor works, IT infrastructure program and library resource allocation
• Central Financing - central financing receipting and distribution.

3.1.1 Roles and Responsibilities

The Directorate of Finance and Strategic Planning is responsible for collating budgets
received from colleges and administrative units and for preparing the final University-
wide budget in January each year.
Finance and Planning Committee of Council is responsible for considering strategic
budget issues, approving the budget framework, and endorsing the University’s budget.
Council is responsible for approving the University’s budget.

3.1.2 Budget process

Makerere’s financial year is based on the government of Uganda financial year, and the
budget for the University is set within this time frame. The annual budget is developed on
an annual basis incorporating anticipated revenue and expenditure for all activities of the
organization that have financial implications. The University’s budget for the following
year is completed by January each year and approved by Council at its January meeting.

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Annual budgeting allows strategic analysis and decision making to be undertaken as part
of the University’s budget process. The budget is a detailed operational financial plan
with the two out-years developed at a strategic level.

The budget is an integral part of the University’s planning process and is achieved through
the steps described below.

Step 1 - Development of Finance and Infrastructure Plan

Step 2 - Development of budget package
Step 3 - Development of draft programs and College / division / institute budgets
Step 4 - Budget signed off with Vice-Chancellor
Step 5 - Budget endorsed by Planning and Resources Committee and approved by Council
Step 6 - half year reforecast
Step 7 - Second half year reforecast (Second half Yr1)
Step 8 - End of Year Financial Reporting (First half Yr2)

3.1.3 Corporate level budget development

In preparing corporate budget projections for inclusion within the University’s Budget
Package, the Division of Finance and Resource Planning is required to:

• determine the internal distribution of Commonwealth grant funding for both

teaching and research grants;
• estimate revenue from fee-paying students and other income sources;
• identify existing and new strategic initiative funding; and
• review funding levels for University-wide overheads.

The annual budgets reflect the overall direction of the University as set out in the
University strategic plan. The budget allocates resources each year for units to address
the goals established in the strategic plan.

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In the first half and second half of each budget cycle the University will undertake
a complete review of its financial performance against the first year of the approved
budget. This review is of all budget programs, with the budget to be reforecast to reflect
the anticipated outcome for the year. The purpose of this review of annual revenue
and expenditure estimates is to make appropriate adjustments for material movements
in performance, which result in a major increase or decrease to the overall estimated
financial position of the program or activity.

In addition, Colleges, and institutes will undertake a formal review of their Operating
Program and College Funded Research budget forecasts in the first half and second half
of each year. The reforecasting process will involve negotiations between faculties /
divisions / institutes and the Unit of Finance and Resource Planning regarding budget
increases / decreases in revenue estimates, along with material movements in anticipated
expenditure performance. Any budget adjustments will occur prior to the end of the first
half and end of the second half of the year respectively.
The Finance Department will liaise with the sponsors of the other budget programs to
incorporate changes in revenue and expenditure performance.

3.2 Strategic Planning

The strategic planning process is coordinated by the Directorate of planning and

incorporates information from all units of the University. Due consideration is given to
environmental scan of internal and external factors affecting the achievement of the
University’s objectives, clearly Identifying threats and opportunities.
The strategic plan is approved by the University council on recommendation of
Management. It’s the Annual strategic goals that form a basis for the annual budgeting
of all units of the University.

3.3 Annual Budget Planning

Budget development

As part of the strategic planning and budgeting process (A/2.2) faculties, divisions and
institutes prepare and submit, for detailed review, their proposed annual teaching program
budget, along with research-related budget submissions, for the coming financial year
and two out-years.

Section 62(1) of the UOTIA provides that “the University Council shall, within a period of
three months before the end of each financial year, make and submit to the Minister for
approval, estimates of the income and expenditure of the Public University for the next
ensuing year”

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The preparation of the University budget goes through the following process(Diagram
above):-
i. Strategic plan review by the budget Committee
ii. Estimation of Internally Generated Revenue by the University Bursar
iii. State Appropriation (Government subvention) by Government
iv. Identification of Priority areas by the College Finance Committees
v. Allocation of resources to units by the University Bursar
vi. Detailed Budgeting at Units by College finance Committees
vii. Consolidation of Budgets by the University Bursar
viii. Budget approvals By FPAC & University Council
ix. Budget implementation and monitoring by the University Bursar
x. Budgetary control by the finance department

3.2.1 Strategic plan review

The budget is intended to identify resources each year for units to address the priorities
established in the strategic plan. With the coordination of the Planning directorate of the
University, Units are required to identify key priority areas in the strategic plan annually,
and that should form the basis of their annual budgeting priorities.

3.2.2 Estimation of Internally Generated Revenue

The planning department with the help of Academic registrar’s department, Finance
Department and the Dean of students will identify critical planning, growth, and
environmental factors to assist in estimating tuition revenue based on projected enrollment
and current trends in admissions, applications, retention, transfers, accommodation,
tuition increase, etc.

3.2.3 Government appropriation

The Vice Chancellor, Accounting Officer, and the Bursar attend the National Consultative
Workshop called by the ministry of Finance, planning Economic Development. The
Workshop generates consensus on the budget preparation process, budget priorities for
the next financial year and over the medium term with various stakeholders.
In line with the Medium term expenditure frame work and local revenue estimates, the
Secretary to the Treasury will issue spending ceilings broken down into wage, Non wage,
Development and Donor.

3.2.4 Allocation of resources to units

Makerere University is funded from a variety of sources including the following:

• Government funding through sponsorship of students

•S tudent fees (Appropriation in Aid)

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Makerere University

• Substantial support for specific research projects with grant funds channeled
through other agencies, for example, the Uganda National Council for science
and Technology (UNCST)). Such agencies award grants to the University for
Use by individual members of staff or a research team for a project approved
by the granting agency
• Grants for development projects or other purposes
• Investments on university lands
• Proceeds from commercial units.

Internally, funds are distributed on a monthly basis or depending on the availability

of funds across the University based on the Consolidated Budget. The Annual Budget
development is tied closely to the University’s planning process and is approved by
Council before the end of the year prior to its implementation. All University funds are
consolidated in one basket and re-distributed according to a zero budget framework.

The estimation of Internally Generated Revenue, Government appropriations, and Bilateral

Donor funding activities all go into projecting overall University revenue for the year.

Based on the revenue projections, resources are allocated to units as follows:-

i. Internally Generated revenue is allocated to units on the basis of activity budgets
and shared between the unit and the centre based on the prevailing approved
council policy on sharing of internally generated revenue.
ii. Government appropriation in relation to wage, Development and Donor funding
is specific and is managed centrally. Non wage Government appropriation will be
allocated by the Director planning and the University Bursar based on the strategic
plan key priorities subject to Council approval

3.2.5 Detailed Budgeting at Units

Based on the resources allocated, Units prepare activity/ output based budgets
comprehensively detailing: output, performance indicators, and activities to achieve the
output, inputs required and their costs. The unit budgets should be populated in the
approved chart of accounts. The forecast of expense is based on experience and resources.
In order to finalize the unit budget for the upcoming year, It is the responsibility of
the Head of the unit to distribute the overall resource allocated to the unit into various
operating expenditures.

The units must ensure they meet the budgeting deadlines as set out by the University
Bursar.

The unit budgets must be approved by their respective finance committees and submitted
to the University Bursar for review and eventual submission to council for approval.

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3.2.6 Consolidation of Budgets

When all Unit budgets are approved and submitted, the University Bursar reviews the
budgets in detail to ensure the appropriate amount was budgeted for and that the total
amount budgeted does not exceed the amount of resource allocated to the unit overall.
All the units’ budgets are consolidated to derive the University wide annual budget that
is presented to council through FPAC for approval.

3.2.7 Budget approvals

Section 62(1) of the UOTIA provides that “the University Council shall, within a period of
three months before the end of each financial year, make and submit to the Minister for
approval, estimates of the income and expenditure of the Public University for the next
ensuing year.

The hierarchy of the University budget approval is as summarized below:-

i. Finance committee- at Unit level
ii. Finance Planning and Administration committee of Council- For the Draft
consolidated budget
iii. Council- For the Overall University Budget
iv. Ministry of Finance Planning and Economic Development and Ministry of Education
and Sports- Final approved budget

3.2.8 Budget implementation and monitoring

The University Bursar communicates to all units the approved budgets by distributing
copies of the approved University budget to all Heads of units.
The budget performance is monitored as follows:-
i. The Management Committee through the Finance planning and administration
committee of Council shall present quarterly Budget performance reports to
council explaining significant variances on actual vs. budget.
ii. Management shall submit Quarterly budget performance reports to the Ministry of
Finance, Planning and Economic Development.
iii. The University Bursar shall prepare monthly budget performance reports for each
budget holder to enhance effective budget monitoring.

3.2.9 Budgetary control

Ledger Works Commitment Control provides the following business processes:

i. Control budget creation and maintenance.
ii. Budget checking against control/remaining budgets
iii. Inquiry on budgets and budget-checking activity.

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Commitment control enables all units to track or control commitments, obligations, or

expenditures. All transactions initiated from the Ledger works application, all undergo
a process that performs both budget journal posting and transaction budget- checking.
The approved budget is uploaded in the commitment control module of the accounting
software of the University. Every payment can only be made if it passes a funds availability
check in the system.

The primary control on unit budgets is available funding. Except for general oversight
and policies governing the appropriate and prudent use of university funds, the central
administration does not place additional limits on spending. For example, if a unit needs
to spend on an item in its budget it does not need to seek approval from the centre.

The Consolidated Budget, the aggregate of all of MAK’s smaller budgets, is therefore not
centrally managed. Nonetheless, a great deal of planning goes into the development of
the individual unit budgets that aggregate into the Consolidated Budget of the university.

3.2.10 Virements

The Accounting Officer shall ensure compliance with the Public Finance Accountability
Regulations (PFAR) regarding the re-allocation of budgets.

The reallocation between line items, within the same vote, shall only be done with prior
approval of the Secretary to the Treasury.

Budget Adjustments

Allowable budget adjustments fall within the following three categories:

a) Material Budget Adjustments These adjustments represent significant
movement in revenue and expenditure forecasts, which impact on the bottom line of the
organizational area and/or budget program. These adjustments are allowed at budget
reforecast time only and are subject to negotiation between the Division of Finance and
Resource Planning and the relevant area.
b) Non-material Adjustments: These adjustments are budget neutral as they have
a nil impact on the bottom line of the organizational area and/or budget program. These
adjustments are allowed between the months of January and December. c) Allocations
to Internal/Collaborative Projects At budget development time organizational areas
are required to identify College / division / institute internally funded initiatives within
the Operating Program. The allocation of these funds to individual projects is allowed
between the months of January and December.

3.2.11 Supplementary funding

The Accounting Officer shall ensure compliance with the Budget Act and the PFAA 2003
regarding supplementary funding. Section 12 of the Budget Act 2001 and sections 16 and

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17 of the PFAA 2003 provide guidance on how to handle supplementary funding.

The Accounting Officer, if in need of supplementary funding, shall submit requests to
MoFPED for onward submission to Cabinet and Parliament for consideration and approval.
The Accounting Officer shall seek prior approval of the University Council before
submission to MoFPED.

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Chapter 4 Financial operations

4.1 Chart of Accounts

Section 7 of the Public Finance and Accountability Act 2003 mandates the Accountant
General to specify the basis of accounting to be adopted and classification system to be
used by every Government reporting unit required to produce accounts. This includes
Public Universities and other Self Accounting Tertiary institutions.

In order to accommodate the unique revenue and expenditure categorization for public
universities, modifications to the Government of Uganda Chart of Accounts have been
made by the office of the accountant General.

Broadly the key features of the Chart of Accounts include;

i. The cost centre segment to enable detailed financial analysis and accountability
taking care of all Colleges, Schools, Institutes, Departments, Affiliated Institutions
and Central Administrative organs.
ii. The MTEF segment and definition of the Vote functions and outputs for the
university.
iii. Additions are made to the account/item segment to accommodate certain
categories of revenues, expenditure and statutory reserves that cannot be
handled using the general Government chat of accounts.

The full and complete Chart of Accounts (as amended) is set out below for direct reference
purposes:

ACCOUNT TITLE TYPE

133102 Treasury Transfers-Recurrent REVENUE
133202 Treasury Transfers-Devt REVENUE
142209 Tuition Fees REVENUE
142219 Accommodation fees REVENUE
142220 Functional Fees REVENUE
145003 Miscellaneous Income REVENUE
211101 General staff salaries EMPLOYEE COSTS
211102 Contract staff salaries EMPLOYEE COSTS
211103 Allowances EMPLOYEE COSTS
212101 Social security cont EMPLOYEE COSTS
213001 Medical expenses EMPLOYEE COSTS
213002 Incapacity death and EMPLOYEE COSTS
221001 Advertising and Publicity EXPENSES
221002 Workshops and seminars EXPENSES
221003 Staff Training EXPENSES

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ACCOUNT TITLE TYPE

221005 Hire of venue EXPENSES
221006 Commissions and related exp EXPENSES
221007 Newspapers & Books EXPENSES
221008 Computer Supplies EXPENSES
221009 Welfare entertainment EXPENSES
221010 Special Meals and Drinks EXPENSES
221011 Printing stationary EXPENSES
221012 Small Office Equipment EXPENSES
221014 Bank Charges EXPENSES
221017 Subscriptions EXPENSES
2210A3 Research EXPENSES
222001 Telecommunications EXPENSES
222002 Postage and courier EXPENSES
222003 ICT Band Width EXPENSES
223001 Property Expenses EXPENSES
223003 Rent & rates EXPENSES
223004 Guard and security EXPENSES
223005 Electricity EXPENSES
223006 Water EXPENSES
223007 Other Utilities EXPENSES
224001 Medical and Vet sup EXPENSES
224002 General Supply of Goods & services EXPENSES
224003 Technology EXPENSES
224004 Food EXPENSES
224005 Veterinary EXPENSES
225001 Consultancy services EXPENSES
226001 Insurance EXPENSES
226002 Licenses EXPENSES
227001 Travel inland EXPENSES
227002 Travel Abroad EXPENSES
227003 Carriage haulage, EXPENSES
227004 Fuel oil and lubricants EXPENSES
228001 Maintenance civil EXPENSES
228002 Maintenance Vehicles EXPENSES
228003 Maintenance Machinery EXPENSES
228004 Maintenance other EXPENSES
231001 Non Residential buildings EXPENSES
231002 Residential building EXPENSES
231003 Roads and bridges EXPENSES
231004 transport equipment EXPENSES
231005 Machinery equipment EXPENSES
231006 furniture and fitting EXPENSES
231007 other fixed assets EXPENSES

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ACCOUNT TITLE TYPE

262201 contribution to int. org EXPENSES
282101 Donations EXPENSES
282103 Scholarships and related costs EXPENSES
321101 Bank Accounts BALANCE SHEET
321501 Staff advances BALANCE SHEET
321504 Other advances BALANCE SHEET
321602 Trade debtors BALANCE SHEET
322115 Cash at Hand BALANCE SHEET
322504 Other advances BALANCE SHEET
415002 Domestic arrears BALANCE SHEET
415006 Deposits Received BALANCE SHEET
418002 Pensions BALANCE SHEET
511201 Reserves BALANCE SHEET

4.1.1 Changes to the Chart of Accounts

Making changes to the Chart of Accounts will require the approval of the Accountant
General.

4.2 Accounting Entries

All financial transactions shall be appropriately recorded in the books of account by

Journals. The journals will be properly approved and supported.
Journals are entries to create/update revenue, expense, assets or liability amounts in the
General Ledger.

4.3 Revenue and Accounts Receivable

1. All revenues generated by University activities and all expenditures for goods and
services must be recorded and accounted for within the University’s Accounting System.
Revenues are recorded when earned, generally when the University has delivered the
goods or services. Similarly, expenses are recorded when goods or services are received by
the University. Holding an invoice or contract does not prevent the expense from being
incurred and reportable. Accordingly, invoices should be submitted to Accounts Payable
on a timely basis.

2. All transactions, whether recorded directly into the general ledger or entered through
a subsystem, should be transcribed and supported in a way that allows for the preparation
of financial statements in conformity with accounting principles generally accepted
by Uganda Government. The University Secretary shall be responsible for the accuracy,
integrity, and overall management of the University’s financial system and should
therefore be consulted on any matters relating to accounting policies and procedures.

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3. The recording of all financial transactions must be timely, accurate, and clearly identify
the true business nature of the transaction. Specific guidance pertaining to the timely
posting of transactions is published on the Finance Department website, in a monthly
memorandum, and in a closing calendar prepared by the University Finance Department.

4. No transaction, whether recorded directly into the general ledger or indirectly from
a subsystem, nor any supporting documentation, shall be deliberately left incomplete
or distorted. No payments made on behalf of the University are to be approved with the
understanding that any part of such payment is for any purpose other than that described
on its supporting documents.

5. The Accountant of each College and Division is responsible for oversight of financial
transactions affecting individual cost centers (consisting of an organization and a funding
source code) or research project/task in the University’s financial records system. It is
the University Bursar’s responsibility to coordinate with the department chair, principal
investigator or other designees to:
Verify that transactions are reviewed and approved by an individual with the appropriate
level of knowledge and authority to do so.

The major sources of revenue for the University are:-

i. Tuition and functional fees
ii. Government subvention
iii. Donor Grants
iv. Miscellaneous income

4.3.1 Student Financial Services

4.3.1.1 Billing for Tuition and functional fees

The FINIS module within ITS automatically posts charges to a student’s account for tuition
and functional fees once a student has completed registration for a specific course.
Course specific fees must be approved through senate before they can be assigned to a
course. The approved fees structure is update in FINIS regularly.
Financial Management Practice and Procedures Manually Charges/credits can also be
posted to a student’s account individually by an authorized member of the Finance
Department at the College or at the Centre. It is through this means that correcting
entries/ adjustments are made to students’ statements.

4.3.1.2 Students statements

Once charges and credits have been posted to a student’s account, a statement is
generated. The statement can be printed out for the student by any authorized staff
of the Finance department at the College or at the central administration. Once a bill
is considered past due, this will prevent the student from getting any service from the

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University such as taking exams, course works, tests or obtaining their transcript until
they settle their bills.

4.3.1.3 Payments and updating of statements

Payments to a student’s account can happen in several ways:

i. Payment at the Cashier’s Office at head office (Main Building) by draft or by a
cheque for an organization. Personal cheques are not accepted.
ii. Pay cash directly on any of the University collection accounts with any of our
partner banks country wide.
iii. Make payments by direct electronic funds transfer to any of our collection accounts
with any partner banks country wide
iv. Partnering banks send the University an electronic file on a daily basis with full
details of students’ payments. The electronic file from the banks is run through it to
the FINIS and accordingly students’ statements are update with payments made.

4.3.1.4 Biological students/staff scholarships

One benefit of being an employee of the University is that the employee or their biological
children may attend the University, subsidized tuition-. To obtain this benefit for a
biological child, the employee must complete a tuition remission form and submit it to
the Human resource department.

An employee will apply to staff and welfare development committee through Human
resource department if they are the ones who require a scholarship.
Once the staff scholarship or biological student status is approved, the student’s statement
will be updated accordingly annually.

4.4 Government Subvention Revenue

Appropriated Government revenue is set out in four categories in the approved Government
budget by parliament. i.e.
i. Wage
ii. Non wage
iii. Development
iv. Donor

Requisition of Government subvention

4.4.1 Wage Revenue

This revenue is disbursed automatically monthly based on the updated payroll managed
by both Ministry of Public service and Ministry of Finance planning and Economic
Development. The returns from Ministry of finance should be picked by Bursars office on

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a monthly basis to record the Revenue and wage expenses accordingly in the University
books.

4.4.2 Non Wage and Development Revenue

Requisition of this revenue should be done by the Bursars office per quarter based on
approved work plans and cash limits issued by the Ministry of Finance planning and
Economic Development.

4.5 Donor Revenue

The following are some of the sources of revenue in this area:

i. Grant receipts /funding
ii. Interest on account
iii. Foreign Exchange Gains

4.5.1 Accounting for Grant Receipts

These are funds from agreements between Makerere University and the donors. Unless
the donor has specified in the agreement the way in which the grant schedule should be
accounted for, the following will apply in the accounting for grants receipts.
i. For external grants, the Director of Planning & Development coordinates through
Central Administration, who are responsible for collecting grants, by liaison with
units who make project proposals and manage projects. Grant receipts are banked
in accordance with donor agreement and accounted for through the
University’s accounting system and GOU Regulations.
ii. Grants receipts should be monitored by using the University’s accounting
procedures. At year end, the outstanding grants balance carried
forward to the following year are advised to University board.

4.5.2 Currency of Grants Receipts

The Grant Budget is usually agreed in foreign currency. Where the agreement requires an
independent account specifically for that grant special foreign currency bank account
will be opened for that purpose. It will be necessary to open another account in shillings,
if transactions are dominated in shillings. A transfer will be made from foreign currency
account to the shillings account for meeting local transactions.

4.5.3 Foreign Exchange

There is a time gap between the receipt of funds and when actual spending takes place.
Given the fact that grants receipts are in foreign currency, there is an element of foreign
exchange differences depending on the prevailing exchange rates which may result into
either a foreign gain or loss.

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The rate of exchange applicable shall be the rate ruling at the time of the transaction.

4.5.4 Requisition for Funds

Procedures for requisition of funds will usually be described in the Agreement between the
donor and the University. The following procedure should be followed on requisitioning
for funds
a) Receipt of funds- The University will acknowledge receipt of funds by issuing
an official University receipt.
b) Acknowledgement of funds- The Dean/Project Co-coordinator will within 5 days:
i. Send letter to the Project Manager informing him /her of the release of funds;
ii. Advise him/ heron the approved budgets.
(c) Recording of Grant Income - The amount received is recorded as follows:-
i. Open and maintain a separate cash book in foreign currency and local currency
accordingly.
ii. The Income is recognized on a cash basis (When received)
iii. If a foreign currency cheque is to be deposited on Uganda shillings account, the
foreign currency amount received will be translated to Uganda shillings at the
exchange rate ruling at that day or negoatiated rates
(d) Grant Monitoring - The agreement will state the procedures for grant
management; a statement of Grant disbursement from the funding agency
might be obtained. It could indicate disbursements to date, the exchange
rate used and current balance. This statement will be compared with the actual
disbursement. The variances are investigated and appropriate corrective action is
taken.
(e) Currency Retention in Foreign Currency - The project manager shall informs the
program Co-coordinator in writing the portion of funds required to be retained in
the foreign currency.
i. Direct payments from the foreign currency account for goods and services are
supported by the third party documents. The payment in foreign currency is
translated into Uganda shillings at the exchange rate ruling at date of such
payments.
ii. The Project Accountant will prepare a monthly Bank Reconciliation Statement
within five (5) days after the end of the month.
(f) Grant Transfer into Uganda Shillings Account- The Project Manager will request
the Project Co-coordinator in writing the portion of funds to be put in Uganda
Shillings Account with necessary documentation, authorization and approval.
(g) Grant Distributions to projects- Project Manager submits the requests for funds to
the Project Co-coordinator in writing.
(e) Quarterly Statements - The Project Co-coordinator will send statements to the
Project Managers on quarterly basis showing the following information.
i. Status of distribution
ii. Cumulative transfers in Uganda shillings;
iii. Cumulative transfer in foreign currency;

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iv. Balances of funds for each project in the program (foreign currency and
Uganda shillings).
(f) Project revenue - Project revenue will include all proceeds generated by the
project related to the approved grant will include disposal of project assets, bank
interest etc. This income will be accounted for on cash basis (i.e. when the money
has been received).
(g) Recording of Project Incomes- Interest received is recorded in appropriate Cash
Book in the month following receipt of the bank Statement with such direct credit.
Other income generated not related to the grant may be recorded in a separate
Cash Book. A separate Bank Account will be opened to account for this other
income if it is not to be mixed with grant income.
(h) Banking procedures - All proceeds are banked intact into “Project Income
Bank Account”.
(i) Utilization of project arrears - Payments from the project income bank account
follow the normal payment procedures but are restricted to the expenditure
specifically incurred in generating such income. All Project income received is
taken into account when requisitioning for grant distribution for the next six
months.

4.6 Staff Advances

4.6.1 Request for advances

The request for advances will be made by a letter. The information supplied by the person
requesting for the advance include:
i. Purpose of the advance;
ii. Expenditure code;
iii. Date of activity (Workshop travel etc);
iv. Budgets for the activity.

4.6.2 Authorization/Approval of Advance

Advances are authorized by the Unit head who will first check the following:
i. Prior advances have adequately been accounted for having verified with the
advance ledger;
ii. Details of the advance (budgets, work plan etc);
iii. The purpose of the advance if it is in line with the work plan and budget.

4.6.3 Recording Advances

Advance ledgers are maintained in which details of advances for all concerned staff are
kept. A control account for advances is maintained in the Vote Book to which the total
of the individual advances during the month are posted.

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4.6.4 Accounting for Advances

The Accountant in charge of expenditure scrutinizes the accountabilities received by

checking the accuracy and comparison with the requests for advance prior submission to
the Unit Head for approval. Accountabilities in excess of the advance are accompanied
with written explanation for the excess expenditure. Where actual expenditure is less
than the advance and the Unit Head has been received, the Accountant in charge of
expenditure receives the surplus Cash, issues a receipt and banks it intact.

Advances will be accounted for within fourteen (14) days of the completion of the activity
and in any case not later than 60days. Failure to comply with standing instructions leads
to the following:
i. Withholding further advances;
ii. Recovery from payroll;
iii. Disciplinary action in accordance with laid down procedures .

A report for accountability must be attached and receipts indicating clearly amount of
advance being accounted.

Outstanding advances at year End will be posted to the general ledger to make up the
funds balance. Accountabilities should be along budget lines. Advances control ledger
Account is kept to monitor advances.

Balances on advances not utilized at the end of the work/research should be surrendered
to the Head of accounts and a receipt should be issued.
Failure to submit accountability will necessitate refund of all unaccounted for funds by
the implementer.

After clearance of all accounted funds, a Journal Voucher (JV) is issued to show clearance
of total amount accounted for.

4.6.5 Accounting for Refund

Refund of over expenditure will be granted after accountability of all advanced funds and
after the University internal Auditor has cleared the accountability.

4.7 Non staff Cash advances

Occasionally units may be required to put a deposit down on a purchase. Cash advances
shall be used for university activities or events which may require cash deposit for a
specific purpose and should be subject to PPDA Regulations.

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4.7.1 Write-off of Bad debts/Advances

Write-off any Debt or advance shall be approved by Council. Advances or Debts proposed
for write off shall first be presented by the University Secretary to the management
committee showing all efforts that have been carried out to recover the amounts in
question previously.

4.8 Procurement and Accounts Payable

The objective of the University procurement process, exercised through the Public
Procurement and Disposal of Public Assets Authority (PPDA), policies and procedures,
is to identify, select and acquire needed goods and services as economically as possible
within specified standards of quality and service. This is done in a manner that provides
for accountability of University expenditures. All University personnel are required to
abide by the Public Procurement and Disposal of Public Assets Authority (PPDA), policies
and procedures when requisitioning goods and services unless otherwise exempted under
those policies and procedures.

Below is the summary of the procurement cycle as mandated by the Public Procurement
and Disposal of Public Assets Authority (PPDA):
For more details on procurements refer to the PPDA Act and regulations.

4.8.1 Key Procurement Documentation

Requisition form-mention about Form PP20 herein

i. This form shall be used by the user staff to request for provision of supplies or services.
ii. The document will be raised in Triplicate, serially numbered:
i. One copy shall be maintained by Finance Department.
ii. Second copy shall be maintained by User Department/Unit.
iii. The third copy will be retained by procurement Department

Local purchase order (LPO)

i. This will be triggered by approved requisition and satisfying all the statutory
procurement requirements.
ii. The Procurement and Disposal Unit shall raise the LPO
iii. The LPO shall be in triplicate, serially numbered and:
o One copy to go to supplier to order the supply of goods/supplies.
o Second copy to go to Finance Department (receiving person) to await arrival of
goods for verification, acceptance and settlement of the invoice.
o Third copy to be retained by procurement.

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Goods Received Note (GRN)

• This is prepared by stores on receipt of goods ordered. Goods Received Note (GRN)
raised shall be in triplicate, serially numbered and:
o One copy to be sent to Finance Department for payment purposes.
o Second copy to be retained by stores for record purposes.
o Third copy to be issued to supplier.

Supplies Issue Note

• It shall be raised when office goods/supplies are issued from store to user.It will
be in duplicate, serially numbered and:
o One copy to the receiving unit.
o Second copy retained by stores.

Service Certificate

This is to be prepared as acknowledgement of receipt of a service which is contractual

in nature, and whose completion needs to be confirmed by a supervisor or technical
person e.g. office partitioning, installations, maintenance and renovation of buildings
and properties etc.

This document will among other things define;

• Service to be provided to the University.
• Phases of the service against which performance progress will be evaluated and
interim payments made.
• Phases executed and paid for and phases not executed and still outstanding for
payment.

It shall be in triplicate, serially numbered and book bound.

• It shall be prepared by the Manager Estates and strategy on the contractor’s execution
of a service to the specification of the service contract:
o One copy shall be sent to finance department for payment purposes.
o Second copy to be given to the contractor.
o The third copy shall be maintained by the Unit.

Purchase Returns Memo

A Purchase Returns Memo shall be raised when a supplier has delivered poor quality or
defective supplies, and this is discovered later after receipt of the same. It will serve to
trigger any of the following transaction actions:
• Return of supplies, with the value quoted on the memo as a debit to the supplier’s
account with the University.
• A debit of a specified amount to the supplier’s account held with the University as

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compensation for the defect or poor quality of the supplies.

The Purchase Returns Memo shall be in triplicate, serially numbered:

o One copy shall be sent to the supplier, to notify him of the action undertaken
against his delivery.
o The second copy shall be used for accounts recording (i.e. updating the
supplier’s account and stock records), matching with relevant documents
and eventual filing.
o The third copy shall be maintained by stores.

4.8.2 Payments

Processing of payments will be initiated at the colleges, user units or departments.

Payments will require 2 signatories to clear. The Head/Deputy of a unit will sign then the
University Bursar or University Secretary will sign at the Centre.
A payment will be initiated by a written request from the school, department /unit,
etc; this will be approved by the head of that unit- with all supporting documentation
attached where applicable( Invoices, receipts, etc).
The payment request will then be sent to the Unit finance office to confirm availability
of funds and budget.

Once the finance office has confirmed funds and availability of budget, a voucher will
be attached to the payment request and forwarded to the Head /Deputy Head of unit for
approval.

Once the Payment Vouchers are fully approved, a cheque will be written or payment will
be uploaded on the electronic system for signing as per the mandate above.

4.8.3 Petty cash Payments

Petty Cash imprest will be maintained for immediate use when normal processes for
procurement do not apply. Petty Cash Funds will be maintained by a designated staff.
Request for Petty Cash replenishment will follow the process for payments described
above.

There are two types of Petty Cash Funds:

• Standard Long Term Petty Cash Funds – Long-term based upon an ongoing and
revolving use of the funds for which replenishments are done on a frequent and
regular basis. An example would be a departmental Petty Cash fund.
• Event or Project Petty Cash Funds – Short-term funds provided for a specific event
or project. They have a definite end date by which they are to be closed
out. An example might be an exhibition event

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4.8.3.1 Imprest system

Payment from imprest shall be for small expenditures where it is not practicable or efficient
to issue cheques or for emergency payments and should be limited only to transactions
not exceeding Shs. 200,000/= for a single payment.

Petty cash payments are restricted to small amounts. Before a unit begins to use imprest,
approval must be sought from the Bursar through the unit head.

To establish a petty cash fund the unit head shall estimate the approximate amount that
is required for a month. Depending on its usage, the petty cash fund may be reduced or
increased with prior written approval from the Unit Head and the Bursar.
The petty cash fund is established and based upon an imprest system in which a single
cheque is drawn to reimburse the fund for the total amount expensed. The Assistant
Accountant at the Unit shall manage the petty cash fund and shall be authorized to
receive and disburse petty cash funds on behalf of the unit. The Head of Accounts shall
be responsible for reconciling the petty cash fund and therefore must not be allowed to
manage it.

Petty Cash must be kept in a cash safe at all times.

4.8.3.2 Request for Petty Cash

When need for petty cash arises, the concerned staff shall raise a Petty Cash request. This
request must be authorized by the head of unit and forwarded to the Head of accounts for
processing and the Assistant Accountant for payment. The money shall be issued to the
recipient as an advance.

4.8.3.3 Retiring Petty Cash

The recipient of petty cash has the responsibility to produce the necessary receipts/
supporting documents required to retire the petty cash advance. These documents form
the basis required to account for petty cash.

Any balance of funds on the advance provided must be returned to the assistant accountant
at the time of accounting for the advance.

Once these receipts are submitted, the petty cashier shall raise a Petty Cash Voucher
for the respective Head of unit for Approval. The Petty Cash Voucher must provide
information regarding the amount of petty cash disbursed, the date, the account code
and a description of the payment.

If the recipient fails to submit the necessary documents required to retire the advance
taken, the Advance listing form must be forwarded to the Head of Accounts. At the time

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of petty cash replenishment the Head of Accounts shall code this as an advance due from
that staff. If by the payroll preparation stage this advance is not retired, the Head of
Accounts must forward the details of unretired petty cash advance to the Head of unit to
authorize recovery from the payroll.

4.8.3.4 Cash Counts

Regular end of month Cash Counts should be made and these should be witnessed by at
least 3 staff. That is the Assistant accountant, the Head of Accounts and any other staff
selected by the Unit head.

4.8.3.5 Recording of Petty Cash

A Petty cash book is kept and balanced off daily. The balance in the Petty Cash Book is
reconciled to physical cash counts.

4.8.3.6 Banking Intact Proceeds

The proceeds from any other cash receipts should not be mixed up with petty cash.
Refunds of advances not used are receipted and banked intact.

4.8.3.7 Petty Cash Replenishment

Replenishment of the petty cash imprest will be equal to actual expenditure incurred
When requesting for replenishment, the petty cashier shall attach a Petty Cash Analysis
Form which summarizes the petty cash expenditure by account code. The replenishment
is meant to raise the petty cash level to the authorized float.

The following process shall be followed:

i. The Assistant Accountant must ensure that the total of the petty cash vouchers
(with relevant attachments) agrees with the Petty Cash Analysis Form
ii. The Head of Accounts shall vouch the payments and attachments thereto and
countersign them if found to be correct. In case errors are found, the Accountant
shall send the petty cash replenishment request back to the Assistant Accountant
for correction.
iii. If no errors are found the Head of Accounts shall prepare the payment request
attaching all the supporting documents and forward them to the Unit /Head/Dean
for approval.
iv. Once approved the Payment Request shall be forwarded to the Head of Accounts
for voucher preparation and subsequent payment.
v. The Assistant Accountant must acknowledge receipt of funds replenishing the
float and this Acknowledgement shall be attached to the Payment Voucher that
drew the funds from the bank.

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4.8.4 Accounts payable

Under cash basis of accounting expenditure is recognized in the period in which it is paid
not incurred. The basis of preparation of accounts is modified with regard to recognition
of pension liabilities and domestic arrears.

A memorandum record is maintained for all pension liabilities and domestic arrears both
at the centre and at the units.

4.8.5 Borrowings

Makerere University may borrow, with the approval of the Permanent Secretary, Ministry of
Education, in accordance with the Universities and Other Tertiary institutions Act 2006.
The University Secretary has delegated authority, following endorsement of each request
by the Vice Chancellor, to approve access to funds from commercial banks 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.

The principles applying to borrowings are as follows:

i. Council, following recommendation from Finance and Planning Committee,

recommends all borrowings to the Secretary to the Treasurer for approval via the
Permanent Secretary, Ministry of Education;
ii. Borrowings must be in Uganda shillings and undertaken in Uganda;
iii. Borrowings will generally be from approved commercial or development
banks, with any guarantee or conditions being approved by the Secretary to the
Treasurer;
iv. Funds required to meet borrowing repayments are to be accounted for in the
annual budget and commitments are to be reported in the University’s Financial
Statements;
v. 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
vi. Total borrowings should be a mixture of fixed and floating interest rates wherever
practicable.

Borrowings may be approved in the following limited circumstances:

• To further the University’s research activities and to commercialize intellectual

property;

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• To support the Asset Management Program;

• To address unexpected shortfalls in cash flows.

4.8.5.1 Approvals

Borrowings may be approved in the following limited circumstances:

i. To further the University’s research activities and to commercialize
intellectual property;
ii. To support the Asset Management Program;
iii. To address unexpected shortfalls in cash flows.

The University Secretary has delegated authority, following endorsement of each request
by the Vice Chancellor, to approve access to funds from commercial banks for up to 3
months and within pre-approved limits by the Secretary to Treasury.

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 Asset Management Plan.

4.8.5.2 Records and reporting

The University Secretary ensures that all borrowings are recorded in a central register and
that source documents are safeguarded.

The University Bursar provides a status report on borrowings as part of the quarterly
report to Finance and Planning Committee.

4.9 Bank Accounts

4.9.1 Bank information

All bank accounts will be opened by written instructions to the banks by the University
Secretary with prior approval from the University Council. The bank opening instructions
will clearly indicate the signatories and their mandates.

Each bank account will have a separate file for filing bank statements, bank advices, list
of signatories and other relevant information. Bank statements will be requested for on
a monthly basis. The cheque books, cheque folios and related bank information are to be
kept (under lock and key) by the Project Accountant. The same applies to cheque folios
and related bank information.

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4.9.2 Bank Documentations

All communication to the banks must be signed by approved signatories in the correct
signing mandate, and delivered by persons authorized to transact with the banks. Likewise,
only authorized persons must collect all communication from the bank.

The bank documents include but not limited to:

i. Bank Confirmations
ii. Letters appointing bank signatories
iii. Letters appointing bank agents
iv. Account inquires
v. Funds transfer instruments
vi. Bank Instructions
vii. Cheque books
viii. Bank Statements
ix. Bank Advice

4.9.3 Bank Transactions

The Unit Head/ University Bursar/ University Secretary on behalf of the University Council
shall appoint at least one member of staff to be a bank agent. This person is authorized
to:
i. Collect Mail / Statements
ii. Deposit Cheques
iii. Deliver Instructions to the Bank
iv. Deposit Cash
v. Order/Collect Cheque Books
vi. Cash Cheques

This authority must be in writing, on a Makerere Letter Head Paper and Communicated to
the bank. The bank agent must not necessarily be a bank Signatory. The Signatories to
the accounts can also withdraw cash from the counter.

If an authorized Cheque signatory or bank agent ceases to be a signatory or bank agent

for any reason, the Head of unit shall notify the University Secretary of the name of
the signatory or bank agent and request that their signing or bank agency authority be
revoked as of a specific date. The University Secretary shall write to the bank immediately
revoking the signing or bank agency privileges of such a person. A copy of this letter, duly
stamped by the bank as “received” must be kept on the bank file.

Other Bank Transaction Controls

i. The authorized signatories to the cheque/ Electronic funds transfer will be in two
categories of signature levels. The Principle signatories, (that is, the University

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Bursar and University Secretary) and other Signatories that is the Unit Head /
Deputy Unit Head.
ii. Signatories must scrutinize all the supporting documents for authenticity and
completeness prior to signing the cheque.
iii. All the supporting documents to payments must be stamped PAID upon the
cheque/EFT signed.
iv. All cheques issued shall be registered and signed for by the recipient.
v. Signing of blank cheques is not permitted
vi. All cheque serial numbers must be accounted for in the cash book and all cancelled
cheques shall be perforated and filed separately.
vii. All cheque books must be securely kept under lock and key in the safe at all times.
The Head of accounts shall keep the key to the safe.
viii. All instances of loss or misplacement of cheque book/leaves shall be reported
promptly to the bank. A stop payment order shall invariably accompany such a
report.
ix. Requisition for cheque books shall be made only by authorized signatories.

4.9.4 Cash Book

A separate cash book is kept for each bank account.

4.9.5 Bank Reconciliation Statements

Bank Reconciliation statements should be prepared by the Head of accounts on a monthly

basis. Cheques that remain un-presented for more than 3 months are to be followed up and
evidence of such action documented. Those over 6 months shall be cancelled and written
back in the cash book and the corresponding expenditure reversed. All direct entries on
the Bank Statement are reviewed and identified. Those with valid explanation are recorded
immediately in the Cash Book during the month. Those which are not explainable are
followed up with the Bank within 14 days from the date the Bank statement is received.

4.10 Payroll

4.10.1 Updating of Payroll

Makerere University payroll is managed by the Ministry of Public Service. Updating of the
payroll will be by way of pay change reports that will be prepared by Finance department,
checked by Human resource department and approved by the Accounting officer. The
payroll updates to include in the pay change report will take the following forms:
i. Additions of new employees- supported by appointment letters.
ii. Additions of employees deleted previously in error.
iii. Deletion of leaving/ retiring employees.
iv. Changes in pay due to arrears, promotions, etc.
All pay change reports must be submitted by 15th of every month for the change

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to be effected the following month.

4.10.2 Payroll Deductions and remittances

There are two types of payroll deductions:-

i. Statutory deductions- PAYE, NSSF, LST, etc
ii. Non statutory deductions- Advances, Utility charges, Pension schemes, etc.

For non-statutory deductions; a code must be requested from public service by the
University for the deduction to happen.
For statutory deductions ensure that staff are properly registered with the respective
statutory bodies and that deductions are remitted on time.

4.10.3 Funding of the Payroll

The University funds a portion of the payroll from internally generated funds. Internally
generated funding should be contributed by 15th of every month not to cause any delays
in salary payment.

4.11 Inventory Management

Inventory includes supplies, materials, furniture, and other movable assets stored for
allocation to users upon requisition. Every unit should ensure:-
i. They identify a place to accommodate its stores
ii. Have a designated staff in charge of stores.
iii. The stores are properly secured from theft and bad weather.

4.11.1 Procedures for stores management

i. All goods received must be accompanied with a local Purchase Order (LPO),
Delivery note and Invoice.
ii. The Stores Goods Received Note (SGRN) has to be prepared on receipt of the
Goods. It should be attached to the delivery note and the invoice to support the
payments.
iii. The store keeper must always inform Internal Audit when goods are received so
that they are verified.
iv. Goods received should be posted on the ledger cards/ bin cards.
v. Bin cards/ stores ledger should be updated with issues out of stores.
vi. A report should be prepared at the end of every quarter showing receipts, issues
and balances of all stock items.

4.11.2 Stock take/Inventory Count

At the end of every year there should be a stock count and will be in line with detailed
guidelines issued by the Accountant General annually.

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4.12.1 Fixed Assets & Intangible Assets Management

Definition

An asset is anything of material value and which provides a potential future economic
benefit to the University. The University Secretary is responsible for the strategic
management of the University’s assets including its property, plant and equipment.

Intangible assets are identifiable long-term assets of an organization having no physical

existence, such as intellectual property (IP) and information technology software.
Software (including purchased software) that is not an integral part of hardware is treated
as an intangible asset.

Where the software is an integral part of the related hardware (for example the operating
system), it is treated as Property, Plant and Equipment.

A Fixed Assets Register is maintained by the University for all non-current assets with
acquisition costs in excess of Shs.5,000,000. This register records all data necessary to
identify and locate assets, together with other relevant information (eg depreciation, life
expectancy).

Assets with acquisition costs less than Shs. 5,000,000 but greater than Shs. 2,000,000
(greater than Shs. 1,000,000 for ICT equipment) are also recorded in the Fixed Asset
Register as portable and attractive items, where required.
Heads of responsibility centres should exercise efficiency and economy in acquiring assets
on the University’s behalf and observe University and Government purchasing policies.

To assess an internally generated intangible asset, the project needs to be identified at

the earliest possible stage. Internally generated assets arising from development of an
internal project must demonstrate that the asset will generate probable future economic
benefit.
Software development can be undertaken in-house and will include activities such as
design and construction, testing, specifications works, pre-production use, alternatives,
improved products, processes or service.
Makerere University’s asset management framework identifies the key elements associated
with asset management, namely acquisition, use, disposal and investment. For property,
plant and equipment it considers a ‘whole of life’ approach including operational
requirements, acquisition, enhancements, and disposal of assets, all of which have an
impact on asset valuations and depreciation.

The University may control other assets under arrangements with other bodies, or under
terms of leasing or tenancy agreements.

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In managing fixed assets, units will ensure:-

i. Safe custody of all fixed assets.
ii. Moveable fixed assets are properly engraved
iii. Documents of title are safely maintained

4.12.1 Fixed Assets Accounting

Makerere University when accounting for assets will ensure:-

I. Purchases of assets including immovable property, plant and equipments are
expensed fully in the year they are paid forfor Government financial reporting purposes.
II. A record of acquisition, transfers and movements of fixed assets is maintained
III. All units will maintain fixed asset registers. The Fixed Assets Register will record
all non-current assets with acquisition costs in excess of Shs.200,000. Assets with
acquisition costs less than Shs.200,000 may also be recorded in the Fixed Asset Register,
where required.
IV. Register for land and buildings will be centrally maintained. The registers where
applicable will detail the following:-
i. Date of purchase
ii. Asset description/name
iii. Asset location
iv. Asset type
v. Cost
vi. Condition- Good or bad/In use or note
vii. Quantity
viii. Reference number
The classification of fixed assets shall be in the following categories:
i. Land
ii. Buildings
iii. Plant & Machinery
iv. Motor Vehicles
v. General Office equipment
vi. Electronic Equipment
vii. Office Furniture, and
viii. Fixtures & Fittings

4.12.2 Leasing of assets

A purchase versus lease appraisal should be prepared by the college or department to

validate a recommendation to either lease or purchase an asset. Heads of responsibility
centers should obtain the approval of the University Secretary before entering into
commitments for leasing assets.

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4.12.3 Rental of Assents

When not required for University purposes, University assets may be hired to staff and
outside bodies on terms and conditions contained in Makerere University’s policy for user
charging. Requests for new arrangements must be forwarded to the University Secretary
for consideration and endorsed by the Vice-Chancellor.

University assets may be hired to staff and outside bodies in line with PPDA regulations
Requests for new arrangements must be forwarded to the University Secretary who will
present them to management and thereafter go through the PPDA procedures.

4.12.4 Fixed Assets Disposal

The Board of Survey conducted at the end of every year recommends particular assets
for boarding off. The assets identified for boarding off will be presented to management
for consideration. If management approves disposal in consultation with council where
necessary, then the PPDA regulations will be followed for the procedure of disposal.
Disposals that are not as a result of Board of survey; such as land or buildings, will be
subject to Council approval.

Proceeds from disposal of assets will be treated as miscellaneous income.

Disposal of items can be made when assets are no longer required, have reached the end of
their useful life, or are technically or economically redundant. Faculties and divisions are
provided with the flexibility of choosing how to dispose of their assets through methods
described in the http://www.frp.qut.edu.au/services/policy/financial_management_
manual/Public Procurement and Disposal Guidelines. To be able to make informed
asset disposal decisions, a disposal decision tree has been developed. If a responsibility
centre has assets which are surplus to their requirements, but still serviceable, they must
canvass other areas of the University to determine whether another responsibility centre
has a need for such assets and would be interested in acquiring those assets. Approval for
disposal of assets and write-offs is in accordance with the delegated authority.

4.12.5 Loss of Fixed Assets

Heads of responsibility centers are responsible for reporting any loss of or damage to
assets as soon as possible to the Security Manager, who will take action to prevent the loss
recurring. Where appropriate, an insurance claim should be completed as per instructions
on the Finance and Resource Planning website.

In the event of a possible offence under the Uganda Criminal Code or other act or law,
the Security Manager is required to advise the police and the University Secretary, who
shall notify the Auditor-General. Where official misconduct by a member of the University
is indicated, the Security Manager must instead report the matter to the DVC (F&A) who
shall notify the Staff Tribunal. The University Secretary is responsible for ensuring that all

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material losses are recorded in the Record of Material Losses Register (Non-Cash).
If an asset is lost through an accident, a fire or for any reason other than negligence, a
police report must be obtained. The police report shall be used as the basis of writing this
asset off the register.

If loss is due to negligence on part of staff, the University Secretary shall take disciplinary
action against the defaulting staff and if possible recover the asset.

4.12.6 Insurance of Assets

The University Secretary will ensure all of the University’s insurance requirements are met
accordingly.

4.12.7 Write-off of Fixed Assets

Action to write-off assets must be in accordance with the delegated authority (Schedule
of Authorities and Delegations). The Vice-Chancellor can authorize the write-off of bad
debts and assets which are missing, obsolete, irreparable, at the end of their useful lives
or scheduled for replacement where the value exceeds Shs.25,000,000. The University
Secretary can authorize the write-off of bad debts and assets up to the value of
Shs.25,000,000. Principals of college/ heads of division can authorize the write-off of
assets which are obsolete, at the end of their useful lives or scheduled for replacement or
retirement to the value of Shs.5,000,000.

4.12.8 Depreciation

Assets are depreciated according to accounting standards and policies prescribed by

legislation. Depreciation is calculated by applying the straight-line method.

4.13 Tax

Makerere University must comply with all relevant Authorities, State and Local government
taxation laws, regulations, policies and procedures. In particular the University must
comply with the following tax heads in accordance with the Income Tax Act and Local
Service Tax Act:

i. PAYE
ii. WHT
iii. VAT
iv. LST

Copies of receipts and tax returns shall be securely kept with the other financial records
of the University.

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4.14 Financial Reporting

The University will produce financial statements in the format prescribed from time to
time by the Accountant General.

4.14.1 Monthly Financial Statements

i. Trial Balance.
ii. Statement of Revenue Collected.
iii. Statement of Arrears of Revenue.
iv. Statement of Contingent Liabilities.
v. Statement of Outstanding Commitments.
vi. Statement of losses of public monies and stores written off, and claims
abandoned with authority for such write-off or abandonment.
vii. Statement of losses of public funds and stores reported whether
written –off or not.
viii. Statement of stores and other assets.
ix. Bank Reconciliations.
x. Commitment returns.

4.14.2 Quarterly and annual financial Statements

i. Schedule of Bank balances as per records

ii. Budget performance statements
iii. Payment schedule
iv. Consolidated Trial Balance
v. Statement of Financial Performance – by function
vi. Statement of financial performance – by nature
vii. Statement of financial position [ Balance Sheet] of the consolidated fund
viii. Cash flow statement of the consolidated fund
ix. Statement of changes in equity
x. Statement of outstanding loans
xi. Statement of investments held by the University.
xii. Summary statement of revenues and expenditures by – vote
xiii. Statement of contingent liabilities
xiv. Statement of outstanding commitments
xv. Statement of loss of public monies and stores written off, and claims
abandoned with authority for such write off or abandonment.
xvi. Statement of public monies and stores reported lost whether written-off or not.
xvii. Statement of arrears of revenue
xviii. Statement of stores and other assets.

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Chapter 5. Financial Information Software

5.1 Working Environment

The Makerere University information technology (IT), used for processing financial
information is fairly fragmented and this complicates financial operations. The Financial
IT comprises:-
i. Ledger works for managing Government subvention and internally generated funds
ii. Integrated Tertiary Software- Has a financial component called FINIS. However in
FINIS only the students debtors module and electronic banking are in use.
iii. Pastel, Oracle financials and others may beused for Donor projects.
The Ministry of Finance planning and Economic development is in the process of
acquiring an integrated common IT platform for all public universities to solve the
issues caused by non-integration of IT systems in public Universities.

5.2 Access and Security (Control Environment)

All finance department staff that have responsibilities on various IT systems are assigned
an account when they join the University to access the respective systems to do their
work. There is authorized access to the IT systems based upon the roles that individuals
support as supported by the system in place.

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Chapter 6. University Accounting Policies

6.1 General Information
Makerere University is an accounting entity of the Government of the Republic of Uganda
and is domiciled in Uganda.

The principal address of the entity is:

Makerere University,
PO Box 7062 Kampala,
UGANDA.
Website: http://mak.ac.ug

6.2 Accounting Policies

These are the specific principles, bases, conventions, rules and practices adopted by
the Government of the Republic of Uganda in preparing and presenting the financial
statements.

The principal accounting policies adopted in the preparation of these financial statements
are set out below. These policies have been consistently applied to all years presented,
unless otherwise stated.

6.2.1 Basis of preparation

The financial statements are prepared in accordance with the requirements of the Public
Finance and Accountability Act, 2003 [the Act] and comply with Generally Accepted
Accounting Principles taking into consideration the Government of Uganda legal and
regulatory framework regarding public finances.

The measurement basis applied is the historical cost basis, except where otherwise stated
in the accounting policies below. The cash basis of accounting as modified with regard
to recognition of pension liabilities, domestic arrears, revenue from the consolidated
fund, letters of credit and prepayments should be consistently used.

Under cash basis of accounting, revenue is recognized generally in the period in which it
is received and not when earned, while expenditure is recognized in the period in which
is paid not incurred. Similarly, purchases of assets including immovable property, plant
and equipments are expensed fully in the year they are paid for.

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6.2.2 Reporting currency and translation of foreign currencies

Functional and presentation currency

The functional and reporting currency is the Uganda Shilling, which is the legal tender of
the Republic of Uganda. Items included in the financial statements are measured in the
currency of the primary economic environment in which the entity operates.

Translation of transactions in foreign currency

Foreign currency transactions are translated into Uganda shillings using the exchange
rates prevailing at the dates of the transactions and retranslated at year end using the
closing rate. Foreign exchange gains and losses resulting from the settlement of such
transactions and from the translation at year-end exchange rates of monetary assets and
liabilities denominated in foreign currencies are recognized in the statement of financial
performance.

6.2.3 Reporting Period

The reporting period for the financial statements is the financial year of the Government,
which runs from 1 July to 30th June of each year. However for donor funding, the reporting
period depends on the agreement between the University and the Donor.
The Budget forecast is the original forecast as amended by subsequent supplementary
budgets for the year as appropriated by Parliament.

6.2.4 Revenue

Revenue represents cash received by the entity during the financial year and comprises
Transfers from the Consolidated Fund, Grants received and Non-Tax Revenue.
Subject to Article 152 of the Constitution of the Republic of Uganda, tax is levied with the
authority of Parliament.

Many services and benefits are provided by the accounting entity to the public but
these do not necessarily give rise to revenue to the entity. Equivalently, payment of tax
and other dues do not necessarily result into an entitlement to the taxpayer to receive
equivalent value of services or benefits because there is no explicit relationship between
payments of tax and other dues, and receipt of goods and services from the government.
Revenue is recognized as follows:

Transfers from the Consolidated Fund

Transfers from the Consolidated Fund to the entity are recognized when disbursement
is made. Transfers are made periodically to facilitate the operations of the entity in
accordance with the appropriated budget and the cash limits that have been established
for government spending for the period.

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Grants

Grants are recognized when received. Similarly, grants/transfers to other entities of

government are recognized when disbursement is made.

Non-Tax Revenue

Non-Tax Revenue is proceeds from sales of designated services by the entity. Sales of
services are recognized in the period in which the payment for the service is received and
not necessarily when the service is rendered.

Non-Tax Revenue, whether directly collected by the entity or collected by another entity
on its behalf is recognized when received.

6.2.5 Expenses

Expenditure is to be incurred for official purposes only and, if required, officers must be
able to identify the relationship or nexus between the expenses and the official business
of the University.
Under no circumstances shall University expenditure be incurred for personal or private
purposes.
Prior to committing to the expenditure of money, an appropriately delegated officer must
ensure that the expense:
• is an appropriate and reasonable use of University funds
• is subject to available funding
• complies with all applicable legislation
• is able to withstand public scrutiny
• is the most economical and effective outlay for its purpose
• is appropriate for the effective operation of the University
• Is to be incurred in line with approved University procedures (eg University
Procurement Regulations).

In general, expenditure is recognized when incurred. Expenses relating to pension

liabilities, domestic arrears and interest expense on treasury bills and bonds are accrued
for in the financial statements

Items that fall under the category of official expenditure are in most cases obvious. They
are those expenses that clearly relate to the carriage of official duties and responsibilities.
This would include payments relating to entitlements and conditions of employment such
as official travel expenses payable to a staff member.

However the issue of what “ should not “ be charged to the accounts of the University is
subject to judgment in terms of the relationship, either direct or implied, of that expenditure
to the carriage of official duties and responsibilities. Examples of expenditure in this grey

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area, which requires particular discretion by financial delegates prior to approval, include
expenditure on entertainment, purchases such as flowers for special occasions, and any
expenditure that on face value could be argued to be private in nature (such as outlays
for non-official goods and services).

All financial delegates need to err towards caution in considering whether these types of
expenditures should be approved, and if any doubt exists, the circumstances underpinning
the authorization should be fully documented. All authorizations of expenditure need to
be “publicly defensible”. For contentious items the appropriate financial delegate must
be a senior officer in the University (principal of college or head of division, or a higher
position if necessary) and if doubt exists the University Bursar should be consulted.
Financial delegates authorizing expenditure must ensure that account codes properly
portray the nature of the expenditure and the program against which the expenditure
has been charged.

Under no circumstances, should a financial delegate approve reimbursement claims for

themselves. All reimbursements must be approved by the University officer’s immediate
superior, or a higher position if necessary and in accordance with relevant University
policies and procedures.

Un Official Expenditure: These may include but not limited to:

• dinners/functions at a University officer’s private residence (unless specifically
authorized by the Vice-Chancellor before the event)
• casual drinks (off campus)
• parking for non-business related trips
• valet parking (unless there are no other alternatives)
• parking and traffic fines
• gifts of an essentially private nature (e.g. birthday or wedding gifts
for staff members).

It is acknowledged that there will be circumstances in which a proportion of expenditure

is non-official or private (e.g. hotel accounts containing private phone call charges,
mobile phone accounts containing private call charges). The private component of these
charges should be settled privately and not charged to the University by credit card or
account.

In circumstances where the nature of expenses is unclear, the University officer should
meet the expense in the first instance and subsequently submit a claim with appropriate
rationale to Corporate Finance for determination.

6.2.6 Property, Plant and Equipments (physical assets or fixed assets)

Property, plant and equipment principally comprises land, buildings, plant, vehicles,
equipment, highways, specialist equipment and any other infrastructure assets but does
not include regenerative natural resources such as forests and mineral resources.

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Under government’s cash basis of accounting, purchases of property, plant and equipment
are expensed fully in the year of purchase. However, a memorandum record is maintained
in the Fixed Asset Registers at historical cost of non-current assets of government.
Unrealized gains or losses arising from changes in the values of property, plant and
equipment are not recognized in the financial statements. Proceeds from disposal of
property, plant and equipment are recognized as non-tax revenue in the period in which
it is received.

6.2.7 Receivables

A receivable is money owed to the University for Goods or services purchased on credit.
Receivables include trade receivables which are sales to regular trade customers that
have been completed but not yet paid for, and student outstanding invoices.
All University debt is administered either through the student management system for
student fees or through the University’s finance system for all other activities.

Prior to performing any work or services that will result in a material debt by a potential
customer to the University; the responsibility centre performing the work or services
must perform a credit check on the customer to ensure that the likelihood of a default is
minimized.

Advances and other receivables

Receivables are carried at original historical cost. Bad debts when identified are written –
off as per procedure outlined in Financial regulation. These are reflected the in Statement
of Financial Performance.

Letters of credit

Procurement of goods and services through letters of credit which are cash covered
are recognized in the statement of appropriation when the letter of credit is opened.
Outstanding letters of credit at period-end are treated as deposits receivable and expensed
in the following period when the goods and services are delivered. Where an LC expires
before service delivery, appropriate arrangements will be made for renewal.

6.2.8 Inventories

Consumable supplies are expensed in the period in which they are paid for.

6.2.9 Projects expenditure

Government projects are a series of undertakings by an accounting entity with specific

objectives and a defined time frame and could be either:

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i. fully funded by a government;

ii. jointly funded by government and a development partner;
iii. fully funded by a development partner through either budget support or project
support; or
iv. Fully funded by development partner through provision of physical items rather
than funds.

Projects funded by Government and development partner(s) through either budget

support or project support and are disbursed through the Treasury are accounted for as
inflows and fully expensed in the year.

In the short to medium term as we proceed to develop guidelines for project accounting
and reporting we intend to capture the bank balances in the Statement of Financial
Position and thereafter the net movement.

6.2.10 Investments

All purchases and sales of investments are recognized at the date when payments are
effected or when proceeds are received. All investments in the balance sheet are carried
at historical cost. For investments quoted in foreign currency, the historical cost is
translated at the closing rate.

6.2.11 Cash and Cash Equivalents

Cash and cash equivalents are carried in the balance sheet at cost. For the purposes of the
cash flow statement, cash and cash equivalents comprise cash on hand, deposits held at
call with banks, other short-term highly liquid investments, and bank overdrafts. In the
balance sheet bank overdrafts are included in borrowings.

6.2.12 Borrowings

Borrowings are initially recorded in the Statement of Financial Position [the balance
sheet] at cost net of any transaction costs paid.
Interest expense or income on borrowings is recognized in the Statement of Financial
Performance only when paid or received.

6.2.13 Employee Benefits

Employee benefits include salaries, allowances, pensions and other related-employment

costs. Employee benefits are recognized when incurred. No provision is made for accrued
leave or reimbursable duty allowances.

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6.2.14 Contingencies

Contingent liabilities are recorded in the Statement of Contingencies Liabilities when the
contingency becomes evident. Contingent assets are neither recognized nor disclosed.

6.2.15 Commitments

Commitments include operating and capital commitments arising from non-cancelable

contractual or statutory obligations. Interest commitments on loans and commitments
relating to employment contracts are not included in the Statement of Outstanding
Commitments. Outstanding commitments are included in the balance sheet as payables
and in the Statement of Outstanding Commitments.

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Chapter 7. Financial system of checks

and controls
The University Council has the overall responsibility for the set-up and operation of a
financial system of checks and controls through the University Secretary. The University
Secretary delegates individual components of this responsibility to various University
officials and staff.

7.1 Assets

7.1.2 Cash Assets

Cash assets include monies that are held in petty cash and in the University’s bank accounts
and those monies held by the Crown Agents or other approved financial institution for
short term investment purposes. It is essential that particulars of all monies due to the
University are identified and appropriately recorded so that they may be collected on
or before the due date. Staff members who collect such monies are responsible for the
safe custody of the collections from the time of receipt until deposited into authorized
University bank accounts.

Bank accounts may only be opened with the approval of the University Secretary and only
in the name of Makerere University. The University Secretary is responsible for authorizing
officers to operate these accounts.

Petty cash

• Spot checks on petty cash balances;

• Petty cash and Main cash book reconciliations on a monthly basis;
• Spot checks on composition and nature of petty cash expenditure;
• Spot checks on authorization and approval of selected petty cash
expenditure; and
• Verification of physical security over petty cash.

Bank

• Bank reconciliation statements preparation and review on a monthly basis;

• Spot checks on custody of cheque books and cash books;
• Spot checks on composition and nature of selected cheque expenditure;
• Spot checks on authorization and approval of selected cheque expenditure;
• Spot checks on composition and nature of select Electronic Funds
Transfers (EFTs);
• Spot re-confirmation of authority and approval for select executed EFTs; and

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• Regular re-confirmation of number of, purpose for, authority and approval for
the University’s total stock of bank accounts.
• Re-Confirmation of bank balance at year end.

7.1.3 Receivables

• Annual confirmation of accounts receivable;

• Production of debtor statements and remittance of the same;
• Reconciliation of debtor statement of accounts to the debtors sub-ledger;
• Annual confirmation of advances outstanding; and
• Ageing of debtors and advances and follow-up on past due items.

7.1.4 Credit notes

Credit notes are raised to cancel or amend an invoice raised in error and may only be
issued subsequent to approval being given by an officer authorized to commit funds to
specific limits, in accordance with the Schedule of Authorities and Delegations.

• Spot check of select issued credit notes for authority, approval and bona fide
characteristics.

7.1.5 Write-off of debt

Debts due to the University may only be written off in accordance with the delegated
authorities to write off bad debts and assets – see Schedule of Authorities and Delegations
in Appendix 1.
Detailed procedures dealing with revenue, credit checks, credit notes, debt management
and debt write-off are provided for in this document.

• Spot check of select debt write-offs for authority, approval and

bona fide characteristics.

7.1.6 Inventories

Inventories for purposes of Makerere University assets include land held for resale and
stock held by the University Bookshop. Makerere University does not normally purchase
land for the purposes of resale, however where this is the intention, this document
identifies the appropriate management and accounting for the asset. All purchases of
land must be notified to the University Secretary

Items such as stationery, spare parts, consumables and components, loose tools,
consignment stock and minor equipment held for resale to students or the public are not
considered to be assets.

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• Physical count of inventories on a monthly basis;

• Reconciliation of physical count to stock records; and
• Spot check on physical state of stores, including security arrangements;

7.1.7 Other financial assets

• Physical verification of investment deed / certificates / title documentation

on an annual basis;
• Confirmation of proper custody around investment deeds / certificates / title
documentation; and
• Agreement of investment income stream received to clauses / conditions within
investment deed / certificate / title documentation.

7.1.8 Property, plant and equipment PPE

• Annual physical verification of PPE;

• Reconciliation of physical verification results to the Fixed Asset Register;
• Annual physical verification of PPE ownership documents of title, especially
land; and
• Spot check of select PPE write-offs for authority, approval and bona fide
characteristics.

7.1.9 Insurance of assets

The University Secretary oversees the appointment of an insurance broker to manage the
University’s insurance requirements.
• Confirmation of assets covered by insurance from insurers; and
• Quarterly review of asset insurance coverage.

7.2 Liabilities

7.2.1 Borrowings

• Annual confirmation of loan balances and interest and fees charged directly with
the lender;
• Agreement of interest and fee charges to loan documentation.

7.2.2 Pension liabilities

• Regular quarterly confirmation of pensions liabilities amounts; and

• Year-on-year balance movement reconciliation for pension liabilities.

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7.2.3 Payables

• Reconciliation of supplier statements to creditors sub-ledger on a monthly basis;

• Spot check of supplier balance make-up against source / supporting
documentation; and
• Annual confirmation of supplier balances.

7.3 Revenues

7.3.1 Grants

• Annual confirmation of grants from the relevant grantees; and

• Reconciliation of confirmed grant income to University bank records.

7.3.2 Transfers from Government

• Quarterly confirmation of transfers from Government, from;

• Quarterly reconciliation of confirmed transfers from Government to approved
Budget;
• Quarterly reconciliation of confirmed transfers from Government to University
bank records.

7.3.3 Non-Tax Revenue

• Re-performance of Tuition and functional fees using number of students and

approved fee levels every semester;
• Reconciling re-performance results to recorded inflows;
• Performing budget vs. actual analysis for all Non-Tax Revenue on a monthly
basis, investigating significant differences.

7.3.4 Other Revenues

• Performing budget vs. actual analysis for all Other Revenues on a monthly basis,
investigating significant differences.
• Where possible, obtaining confirmation of Other Revenues from their individual
sources.

7.4 Expenses
• Spot physical verification of University staff;
• Reconciliation of University staff records to payroll records;
• Time tracking of payment of payroll related liabilities;
• Month-on-month payroll expense reviews;
• Spot checks on composition and nature of select expenditure, including CAPEX;
• Spot checks on authorization and approval of select expenditure, including CAPEX;

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• Month-on-month expenditure analytical review;

• Year-on-year expenditure analytical review;
• Budget vs. actual expenditure analytical review;
• Annual confirmations of transfers to other Organizations, from the relevant
Organizations;
• Monthly re-performance of forex gains and losses computations and comparing
results with recorded balances.

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Chapter 8 Appendices
Appendix 1 Bank Account Opening

All AIA funds shall be operated from one College Bank Account. No Department / School
shall be allowed to operate a bank account.
Colleges shall however be allowed to open bank accounts for Research Projects.

Procedure:
The Project Coordinator shall initiate the request for bank account opening through the
College Principal.

Bank:
The bank shall be proposed by the College but approved by the University Secretary.

Signatories:

Signatories for all University accounts are as follows:

Category A: University Bursar & University Secretary

Category B: College Principal & College Deputy Principal

Closure:

At the end of the project, the College Bursar in consultation with the project coordinator
shall initiate the closure of such bank accounts. The University Secretary shall approve
the closure only after project reports have been submitted.

These include:
(i) Bank Reconciliation Statements;
(ii) Financial Accountability;
(iii) Narrative Report.

Appendix 2: Change of Signatories to University/ Project Bank Accounts

Appendix 3: Budgeting Process

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Process Map

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Appendix 2: Change of Signatories to University/ Project Bank Accounts

Process Map

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Appendix 3: Budgeting Process

Process Map

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Finance Procedures Manual Procedures Manual 2014
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Policy Finance Policy

Purpose Equitable allocation of all university

operations

Scope Entire University

Process Owner Director, Finance

Definitions An estimate of the income and expenditure of an

institution/unit/organization

Brief Description of Procedure Bottom up participatory process of identification of

resources

Risks Inadequate data, under budgeting data, over budgeting,

corruption

1 Issue of the budget call-circular by October Unit, Head

2 Prepare Budget Framework Paper Unit Head 2 weeks

3 Finance Department consolidates all templates into one Director, Finance 2 weeks
budget and goes thru a challenge session with respective
units that may not have complied with the guidelines

4 Finance Dept presents to the Budget Committee of Council Director, Finance 2 weeks
for approval

5 The approved budget is forwarded to Ministry of Finance, Director, Finance 3 weeks

Planning and economic development

6 Secretary to Council forwards budget to MOES for approval Secretary to 2 weeks

Council

7 Submission of the BFP (Budget Framework Paper) PDD, Budgeting 1 week

Officer

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Appendix 4: Budgeting Procedure

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Policy Guidelines in the Finance Policy

Purpose To ensure a systematic, timely and clear approach to planning

resources

Scope All university units

Process Owner Director, Finance

Definitions Identification and allocation of resources.

Brief Description of Procedure

Risks Inadequate and inaccurate data; delays, inadequate budgeting

skills, lack of a monitoring function

1 Conduct a needs assessment study as Unit Head 1 month

informed by the universal strategic plan

2 Conduct an analysis of the information from Unit Accountant 2 weeks

the assessment study by October

3 Identify resource mobilization Unit Accountant 2 weeks

4 Matching funding sources to identified Unit Accountant 2 weeks

Activities

5 Allocate funds according to identified Unit Accountant 1 week

activities/priorities e.g. salaries, research,
maintenance, utilities, infrastructural
development)using the budget template
provided by the Finance Department

6 Submit to Unit finance Committee for Unit Accountant 2 weeks

consideration and approval

7 Submit Budget to Finance Department Unit Head 1 week

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Appendix 5: Budget Implementation

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All Units

Process Owner Director, Finance

Definitions The manner in which the approved budget is executed

Brief Description of Procedure Monitoring of resource units

Risks Inadequate data, under budgeting data, over

budgeting, corruption

1 Approved budgets communicated to units Director, Finance

2 Review their work-plans based on the Unit Heads Quarterly

approved
Budget

3 Submission of monthly budgetary performance Unit Heads End of every month

reports explaining any significant variances

4 Review of the unit budget performance Unit Heads At the end of every quarter

5 Consolidation of quarterly budgetary Director, Finance At the end of every quarter

performance reports

6 Submission of reports to subcommittee Director, Finance

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Appendix 6: Accountint for Advances

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All financial transactions

Process Owner Director, Finance

Definitions Obtaining supporting documentation

Brief Description of Procedure Preparation and submission of financial advances

Risks Accountability timelines

1 Applicant compiles accountability Applicant 3 weeks after the

end of the activity

2 Submits accountability to the immediate Applicant 2 days

supervisor (Unit Head)

3 Submission to the Finance Director Unit Accountant 2 days

4 Director/ Bursar forwards the accountability to Finance Director 2 days

audit for verification

5 Issues journal vouchers Unit Accountant 5 days

6 Files accountability Unit Accountant 5 days

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Appendix 7: Staff/Student Claims

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All claims (Staff and Students)

Process Owner Director, Finance

Definitions Money requisitioned for, for

performing a duty

Brief Description of Procedure Submission of claim up to payment

Risks False claims, lack of integrity

1 Staff/Students raises a funds requisition claim Applicant 1 day

2 Staff/Students submits claim Applicant 1 day

3 Approved claims by Principals/ Director Accountant in charge of 1 day

Finance, are forwarded to the Expenditure Payments
Accountant for processing of payment
vouchers.

4 Payment Vouchers are forwarded to Audit for Accountant in charge of 1 day

Verification Payments

5 Verified Payment Vouchers are uploaded on Accountant in charge of 1 day

the Electronic Payment System or a Cheque is Payments
written.

6 1st Signatory Signs. 1st Signatory 1 day

7 2nd Signatory Signs and Funds transmitted to 2nd Signatory 1 day

the beneficiary.

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Appendix 8: Payment of Fees by Student

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Policy Fees Payment Policy in the University Prospectus

Purpose To ensure systematic payment of tuition and other fees and timely capturing
of student data

Scope New and continuing students

Process Owner Academic Registrar, University Bursar

Definitions Payment of University fees to access facilities

Brief Description of Procedure Payment of university fees and updating of student financial status

Risks Forgery of payment documents, Delayed payment of fees which disrupts

University plans, Security and breakdown of Financial Information System
(FINIS)

S/N Activity Responsible Officer Duration of Activity

1 Issue pay slips to students through the Bursar 2 weeks

Bank

2 Receive payment from the Students on Banks 2 weeks

behalf of the University

3 Upload Information to FINIS Finance Department 2 weeks

4 Receive and issue Financial statement College Bursar

to students.

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Appendix 9: Student Payment – Special Faculty Allowance

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Students Payments

Process Owner Director, Finance

Definitions Payment of students allowances

Brief Description of Procedure Submission of clean payment

Risks Delayed payment, strikes, fraud

1 The Bursar communicates the budget for Director, Finance 1 day

special School allowance to the Dean of
students.

2 The Dean of Students communicates to the Dean of Students 1 day

Colleges, allocations per faculty.

3 The College Principal allocates payments per College Principal 2 days

student within the allocated budget.

4 The School allocations per student are sent to College Principal 1 day
the Bursar for payments.

5 Bursar sends these allocations to the Director, Finance 1 day

respective Accountant to check for accuracy
/budgets

6 Vouchers are prepared and sent to Audit for Accountant 1 day

verification.

7 Approved Vouchers are uploaded onto the Accountant 1 day

Electronic payment System.

8 1st Signatory signs. 1st Signatory 1 day

9 2nd Signatory signs and funds are remitted 2nd Signatory 1 day
electronically to the student account.

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Appendix 10: Other Student Allowances

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Students Allowances

Process Owner Director, Finance

Definitions Payment of students’ allowances

Brief Description of Procedure Processing of students’ claims

Risks Delayed payments, strikes, fraud

1 The warden generates the list of current Warden 1 day

students with respective allocations.

2 Wardens Forwards the list to Dean of Students Warden 2 days

for Approval.

3 Dean of Students forwards approved list to Dean of Students 1 day

Bursar for payment.

4 The Bursar forwards the list to the respective Accountant 1 day

Accountant for checking accuracy of rates,
computations and Budgets.

5 Vouchers are prepared and sent to Audit for Accountant 1 day

verification.

6 Verified Vouchers are uploaded on the Accountant 1 day

Electronic Payment System.

7 1st Signatory signs. 1st Signatory 1 day

8 2nd Signatory signs and Funds are remitted to 2nd Signatory 1 day
the student account electronically.

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Appendix 11: Students’ Refund

Student claims for refund

of excess payments Vouchers uploaded on
the electronic system

1st Signatory Signs

2nd signatory signs

and funds remitted to
the student account
Bursar approves claim electronically

Expenditure Accountant

Vouchers are prepared

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PROCESS

Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Students fees

Process Owner Director, Finance

Definitions Determination of excess fees paid

Brief Description of Procedure Process of refunding excess students’ payments

Risks Delays, accuracy, lack of funds

Skills Required

S/N Activity Responsible Officer Duration of Activity

1 The Student claims for refund of excess

payments.

2 The responsible accountant verifies the Accountant 1 day

accuracy of the claim and recommends to the
bursar accordingly.

3 The Refund claim approved by the Bursar is Director, Finance 1 day

forwarded to Expenditure for processing of
vouchers

4 Payment Vouchers are written by expenditure Expenditure Accountant 1 day

accountant and sent to Audit for verification.

5 Approved Vouchers are uploaded on the Expenditure Accountant 1 day

Electronic System.

6 1st Signatory signs. 1st Signatory 1 day

7 2nd Signatory signs and Funds are remitted to 2nd Signatory 1 day
the student account electronically.

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Appendix 12: Suppliers’ Payment

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PROCESS

Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All suppliers payments

Process Owner Director, Finance

Definitions Payment of foods and services

Brief Description of Procedure Process of receiving and paying suppliers’ claims

Risks Delays, lack of funds, fraud

Skills Required

S/N Activity Responsible Officer Duration of Activity

1 Supplier sends invoices to the Procurement office for Procurement Officer

matching of Invoice, Local Purchase Order and delivery
documents.

2 Procurement matches invoice to order and delivery Procurement Officer 1 day

documents/performance documents and send it to the user
departments to confirm delivery.

3 The User departments confirm delivery/ Unit Head 1 day

performance of service and send it to the Bursar’s office for
payments.

4 Bursar approves invoice and sends to Director, Finance 1 day

expenditure for voucher writing.

5 Payment Voucher are sent to Audit for Internal Auditor 1 day

verification

6 Verified Vouchers are uploaded on the Accountant 1 day

Electronic Payment System.

7 1st Signatory signs. 1st Signatory 1 day

8 2nd Signatory signs and funds are remitted to the supplier 2nd Signatory 1 day
electronically

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Appendix 13: Payment of Salaries

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All payroll benefits

Process Owner Director, Finance

Definitions Compilation of payment of payroll

Brief Description of Procedure Payment of staff salaries

1 Receive files from Human Resource with Director, Human

instruction to effect changes on payroll e.g. New Appointment, Resources
Retirement, Promotion,
Individuals requisition for overtime payments, Requisition for
Payment of Arrears etc.

2 Salary cards are opened for new cases and updated. 1 day

3 Process pay change reports and send them to Internal Audit DHR/Finance Director 1 day
and Human Resource for
verification.

4 Submit the Pay Change Reports to Ministry of Public Services Finance Director 2 days
and then to Uganda Computers services

5 Receive preliminary report of payroll from Uganda Computers Manager Finance and 2 days
Services. Administration

6 Edit the preliminary reports and resend them to Uganda Manager Finance and 1 day
Computer Services Administration

7 Salary is paid to individual Bank accounts Finance Director 1 day

8 Receive complaints of unpaid Electronic Finance Director Continuous

Payment Transfers.(Bounced Salary)

9 Resubmit a schedule of unapplied Electronic Payment Finance Director 1 day

Transfers to the Uganda Computers Services to be paid

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Appendix 14: Statement of Payments

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Statutory deductions

Process Owner Director, Finance

Definitions Deductions on staff earnings by law

Brief Description of Procedure Remittance of statutory deductions

1 Expenditure accountant compiles schedules for each type of Accountant, Expenditure

tax or NSSF deductions at the end of the month and
forwards it to Bursar for approval of payment

2 Bursar/ Dean approve payment and forward them to Director Finance 1 day
expenditure for voucher writing.

3 Vouchers are written and sent to Audit for verification. Accountant Expenditure 1 day

4 Verified vouchers are uploaded on the Accountant Expenditure 1 day

Electronic Payment System.

5 1st signatory signs. 1st Signatory 1 day

6 2nd Signatory signs and remits funds to the statutory body. 2nd Signatory 1 day

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Appendix 15: Processing of DAP Payments

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Makerere University Retirement

Benefit Scheme (MURBS) - Savings

Process Owner Director, Finance

Brief Description of Procedure Claiming savings with MURBS

Risks Delays, accuracy of dates

1 Filling of Withdraw forms by retirees. In-charge of Retirement 1 week

Benefits (DHR)

2 Submits the form to MU&RBS Claimant 1 day

3 MURBS processes payment Board of Trustees 1 month

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Appendix 16: Payment of Pensioners

RETIREMENT

1st signatory signs

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Beneficiaries in service 2004 and before

Process Owner Director, Finance

Definitions Savings on in-house pension scheme

Brief Description of Procedure Claim of in-house pension savings

Risks Lack of funds, wrong data, etc

1 Receive the claim from pension office. Manager Finance and 1 day
Administration

2 Prepare payment Vouchers and send them to Manager Finance and 1 day
Audit for verification. Administration

3 Verified Vouchers are uploaded onto the Expenditure Accountant 1 day

Electronic System Payment.

4 1st Signatory signs. 1st Signatory 1 day

5 2nd Signatory signs and remits the funds to 2nd Signatory 1 day
the beneficiary.

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Appendix 17: Payment of Contract Gratuity

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All contract staff

Process Owner Director, Finance

Definitions Gratuity payment

Brief Description of Procedure Claiming of end of contract payments

Risks Lack of funds, wrong data

1 Receive claim from Human Resource for Manager Finance and 1 day
contract Gratuity. Administration

2 Compute contract gratuity for staff for the Manager Finance and 1 day
period. Administration

3 Submit the computation to URA to determine Manager Finance and 1 day

the Tax levels. Administration

4 Process Payment Vouchers and send them to Expenditure Accountant 1 day

Audit for Verification.

5 Verified payments vouchers are uploaded on Expenditure Accountant 1 day

the Electronic Payment System.

6 1st Signatory signs. 1st Signatory 1 day

7 2nd Signatory signs and remits funds to staff. 2nd Signatory 1 day

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Appendix 18: Receipts Outside the ITS System

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Receipt of some functional fees

Process Owner Director, Finance

Brief Description of Procedure Receipt of some functional fees

1 The client picks a bank slip and pays at the Revenue Officer 1 day
bank on a University account

2 Payments are verified using the Bank Revenue Officer 1 day

statement

3 In case of application fee, the slip is stamped Revenue Officer 1 day

and that is where the process ends.

4 For other payments, a receipt is issued to Revenue Officer 1 day

client.

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Appendix 19: System Based Receipts

A student deposits the

money in the bank

Student accesses his/

her Financial Statement
Electrically

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All Student payments in the bank

Process Owner Director, Finance

Brief Description of Procedure Updating students fees payments

Risks System breakdown, bank delays in

remittances

1 A student deposits the money in the bank. Student 1 day

2 Following day, the responsible accountant Revenue Accountant 1 day

uploads student payment for previous day unto
student’s financial statements.

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Appendix 20: Cash Payments Less than UGX 5,000

Cash is paid directly

to the Cashier

It is banked on the same day

A monthly reconciliation
is carried out

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope All cash payment at University

Process Owner Director, Finance

Brief Description of Procedure Receiving and banking of cash receipts

1 Cash is paid directly to the cashier. Revenue Officer 1 day

2 It is banked on the same day Revenue Officer 1 day

3 It is verified from the bank statement Revenue Officer 1 day

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Appendix 21: EFT / RTGS Payments

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Electronic funds payment of fees

Process Owner Director, Finance

Brief Description of Procedure Process of paying tuition by EFT

1 The sponsor /student/ debtor picks the Student

account details.

2 Banks the funds via online instructions to Student 1 day

the bank.

3 The bank credits the payment into the Revenue Officer 1 day
University Account.

4 Payment is verified by printing the credit entry Revenue Officer 1 day

on the University account.

5 A receipt is issued to the debtor/student. Revenue Officer 1 day

6 Payments are captured into the respective Revenue Officer 1 day

student statement.

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Appendix 22: Cheques / Drafts Payments

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Tuition payments by cheque /drafts

Process Owner Director, Finance

Brief Description of Procedure Receipting of fees payment by cheque

Risks Bouncing of cheques

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Appendix 23: Accounts/ Government Subvention

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Government Releases

Process Owner Director, Finance

Brief Description of Procedure Reporting of Government subvention use

Risks Fraud

1 The Unit accountants submit monthly trial Unit Accountants 2 days

balances of the previous month to the
manager Financial Reporting by 10th day of
the following month.

2 The manager Financial Reporting analyses the Manager, Financial 2 days

Trial balances for accuracy. Reporting

3 The analysed monthly Trial Balances are Manager, Financial 2 days

consolidated into a quarterly report. Reporting

4 The Manager Financial Reporting forwards the Manager, Financial 2 days

report to Bursar for approval. Reporting

5 The Bursar forwards the report to the The bursar 2 days

Accounting officer for Approval.

6 The Accounting officer forwards it to the Accounting Officer 2 days

Ministry of Finance.

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Appendix 24: Appropriation in Aid (AIA)

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Policy Finance Policy

Purpose Efficient and effective use of resources

Scope Internally Generated Funds (IGF)

Process Owner Director, Finance

Definitions Reporting of all IGF

Brief Description of Procedure Preparation of technical & financial reports

1 The Unit accountants submit monthly trial Unit Accountants 2 days

balances of the previous month to the
manager Financial Reporting by 10th day of
the following month.

2 The manager Financial Reporting analyses the Manager, Financial 2 days

Trial balances for accuracy. Reporting

3 The analysed monthly Trial Balances are Manager, Financial 2 days

consolidated into a quarterly report. Reporting

4 The Manager Financial Reporting forwards the Manager, Financial 2 days

report to Bursar for approval. Reporting

5 The Bursar forwards the report to the The bursar 2 days

Accounting officer for Approval.

6 The Accounting officer forwards it to the Accounting Officer 2 days

Ministry of Finance.

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Appendix 25: Year-end Processes (Closing of Accounts)

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Policy Finance Policy

Purpose Financial accountability, reporting and proper planning for the next
period

Scope Financial Management

Process Owner University Bursar

Definitions End of period financial report

Brief Description of Procedure Reconciliation of the expenditure with the income of the financial
year

Risks Fraud, poor time management, lack of documentation, incompetent

accountants, Double counting

1 Issuing circular to accountants on University Bursar 1 week

documentation reconciliation at the beginning
of March

2 Carry out final reconciliation Unit Accountants 1 month

3 Submission consolidated financial statements Unit Accountants 1 week

to the University Bursar

4 Review of submissions and demands for University Bursar , Unit 2 weeks

corrections, if any Accountants

5 Submission of finance, planning, DVC(F&A) , University Bursar 1 week

administration and welfare committee to
council through the DVC (F&A)

6 Consideration of final accounts DVC(F&A) , University Bursar 2 weeks

7 Submission of final accounts to Council University Secretary 1 week

8 Consideration and approval of final accounts University Secretary 1 month

9 Publication of final accounts

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Appendix 26: Year-end Processes (Annual Financial Statements)

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Policy Finance Manual

Purpose Financial accountability, reporting and proper planning

Scope Financial Management

Process Owner University Bursar

Definitions Statements of income and expenditure,

assets and liabilities for the financial year

Brief Description of Procedure Reconciliation of the expenditure with the income of the financial
year

Risks Fraud, poor time management, lack of documentation, incompetent

accountants, Double counting

1 Bursar issues circular to accountants on University Bursar 1 week

documentation reconciliation at the beginning
of March

2 Accountants carry out reconciliation Unit Accountants 4 months

3 Unit accountants send consolidated financial Unit Accountants 1 week

statements to the University Bursar

4 University Bursar reviews submissions and University Bursar , Unit 2 weeks

demands for corrections, if any Accountants

5 Financial statement submitted to Finance, University Bursar 1 week

Planning, Administration and Welfare
Committee of Council through the DVC (F&A)

6 Committee, in consultation with DVC(F&A) and University Secretary 2 weeks

University Bursar, considers final accounts

7 University Secretary submits to Council University Secretary 2 weeks

8 Council considers and approves University Council 2 weeks

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Draft Financial Management Policies

Financial Management Responsibility Policy
Date of Approval by Council:
Date of Next Review:

Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff and the entire University

A Policy Statement
All University faculty and staff are accountable for processing and recording financial
transactions in a timely and proper manner.

Reason for Policy/Purpose

Sound business practices and stewardship principles call for each member of Makerere
University faculty and staff to be accountable for safeguarding and preserving the
assets and resources of the University, and for accurately recording the transactions
of the University for the purposes of appropriately reporting to constituents including
students, parents, donors, sponsors, and other interested parties. This document has been
developed to provide further guidance on the proper accounting for transactions. While
it is impossible to address every conceivable situation that may arise, this policy should
provide a framework for faculty and staff to draw upon in their evaluation of Policy/
Procedures

The following policy statements pertain to all business activities of the University and
are applicable to all members of the faculty and staff. Supervisors are responsible for
familiarizing their staff members with this policy. While certain tasks may be delegated
to staff directly involved in processing transactions, accountability cannot be delegated.
The person delegating tasks remains responsible for proper performance of those tasks.

1. All revenues generated by University activities and all expenditures for goods
and services must be recorded and accounted for within the University’s Accounting
System. Revenues are recorded when earned, generally when the University has
delivered the goods or services. Similarly, expenses are recorded when goods or
services are received by the University. Holding an invoice or contract does not
prevent the expense from being incurred and reportable. Accordingly, invoices
should be submitted to Accounts Payable on a timely basis.
2. All transactions, whether recorded directly into the general ledger or entered

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through a subsystem, should be transcribed and supported in a way that allows for
the preparation of financial statements in conformity with accounting principles
generally accepted by Uganda Government. The University Secretary is responsible
for the accuracy, integrity, and overall management of the University’s financial
system and should therefore be consulted on any matters relating to accounting
policies and procedures.
3. The recording of all financial transactions must be timely, accurate, and clearly
identify the true business nature of the transaction. Specific guidance pertaining
to the timely posting of transactions is published on the Finance Department
website, in a monthly memorandum, and in a closing calendar prepared by the
University Finance Department.
4. No transaction, whether recorded directly into the general ledger or indirectly
from a subsystem, nor any supporting documentation, shall be deliberately left
incomplete or distorted. No payments made on behalf of the University are to be
approved with the understanding that any part of such payment is for any purpose
other than that described on its supporting documents.
5. The Accountant of each College and Division is responsible for oversight
of financial transactions affecting individual cost centers (consisting of an
organization and a funding source code) or research project/task in the University’s
financial records system. It is the University Bursar’s responsibility to coordinate
with the department chair, principal investigator or other designees to:
6. Verify that transactions are reviewed and approved by an individual with the
appropriate level of knowledge and authority to do so.

1. Verify that adequate internal controls are established over processing of

financial transactions affecting the school or administrative department. Internal
controls include segregating duties, limiting both physical and data access to
individuals who need such access to perform their responsibilities, and monitoring
and evaluating financial results as outlined below.
2. Verify that periodic reports of account activity are reviewed to determine
that all charges and entries are accurate and complete. The review must include
a comparison of budget to actual results where applicable, and trends or areas of
concern must be identified. For significant deviations from expected results, the
variance must be investigated and reasons documented, along with any necessary
corrective action plan.
3. Verify that all entries made to each revenue and expense account have
been properly allocated and that transactions represent activities that pertain
to the purpose of the account. In the case of restricted accounts, verify that all
transactions comply with donor-imposed restrictions on the use of funds.
4. Take appropriate and timely action to correct any improper charges allocated
to a cost center or research project/task by notifying the Comptroller’s Office. All
notifications should be made to the University Secretary, unless the transaction
pertains to a sponsored research project. Notification for research adjustments
should be made to the Director of Grants University Bursar’s Office.

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5. Verify that all charges to governmental and other restricted sponsoring agency
accounts are appropriate and allowable under the sponsor’s regulations.
6. Verify that all University property is properly secured and accounted for on a
periodic basis. Physical property of the University must be safeguarded, used for
University purposes, and properly maintained. See the Fixed Asset Management
Policy for more information.

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Budget Policy
Date of Approval by Council:
Date of Next Review:

Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff, Students and the entire University

A Budget overview
Makerere University, as a statutory authority established under the Universities and Other
Tertiary institutions Act 2006, is required to undertake planning, budgeting and reporting
in accordance with the following legislation:
• Finance Act
• Public Finance and Accountability Act Uganda

The University prepares and manages its budget in conjunction with the annual strategic
planning process. The budget is based on estimates provided by each responsibility
centre and its purpose is to deliver the approved plans of colleges, administrative units
and institutes. Detailed accrual budgets are prepared as five distinct programs:
• Operating - revenue and expenditure of all units relating to teaching,
support activities and central overhead commitments
• Research and External Services - research training and institutional
grants schemes, research infrastructure (derived either from central
allocations out of operating funds or from external sources) and external
revenue for specific research, consulting, testing or continuing education
projects
• Asset Management - the major building program, maintenance
programs, University minor works, IT infrastructure program and library
resource allocation
• Central Financing - central financing receipting and distribution.

A detailed definition of each of the above programs is provided in the University’s

Financial Management Practice and Procedures Manual.

Program budgeting enables the University to monitor the source and application of funds
provided from Government, donations, international and domestic fee-paying students,
external service activities and commercial-like operations.
The University’s Strategic Planning Package and the Budget Package are released in
the second half of each year. The Vice-Chancellor and Executive Director, Finance and

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Resource Planning meet with each responsibility centre to discuss plans for the future
three years. Responsibility centres then develop their annual budgets based on their
plans and discussions from these strategic planning meetings.

1.3 Roles and responsibilities

The Directorate of Finance and Strategic Planning is responsible for collating budgets
received from colleges and administrative units and for preparing the final University-
wide budget in January each year.
Finance and Planning Committee of Council is responsible for considering strategic
budget issues, approving the budget framework, and endorsing the University’s budget.
Council is responsible for approving the University’s budget.

1.4 Budget cycle

Makerere’s financial year is based on the government of Uganda financial year, and the
budget for the University is set within this time frame. The annual budget is developed on
an annual basis incorporating anticipated revenue and expenditure for all activities of the
organization that have financial implications. The University’s budget for the following
year is completed by January each year and approved by Council at its January meeting.
Annual budgeting allows strategic analysis and decision making to be undertaken as part
of the University’s budget process. The budget is a detailed operational financial plan
with the two out-years developed at a strategic level.

The budget is an integral part of the University’s planning process and is achieved through
the steps described below.

Step 1 - Development of Finance and Infrastructure Plan

Step 2 - Development of budget package
Step 3 - Development of draft programs and faculty / division / institute budgets
Step 4 - Budget signed off with Vice-Chancellor
Step 5 - Budget endorsed by Planning and Resources Committee and approved by Council
Step 6 - half year reforecast
Step 7 - Second half year reforecast (Second half Yr1)
Step 8 - End of Year Financial Reporting (First half Yr2)

4.1.5 Corporate level budget development

In preparing corporate budget projections for inclusion within the University’s Budget
Package, the Division of Finance and Resource Planning is required to:

• determine the internal distribution of Commonwealth grant funding for both

teaching and research grants;
• estimate revenue from fee-paying students and other income sources;
• identify existing and new strategic initiative funding; and

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• review funding levels for University-wide overheads.

The development of the budget at the corporate level is detailed in the Financial
Management Practice and Procedures Manual.

4.1.6 Load management and funding implications

Student load (EFTSL) projections underpin the internal distribution of Commonwealth

grant funding for both teaching and research, along with the projections of income
from fee-paying students, for the purpose of developing the University’s budget at the
corporate level.
QUT and the Australian Government enter into a three-year Funding Agreement, which
outlines EFTSL by funding cluster and other arrangements for funding under the
Commonwealth Grants Scheme. EFTSL is calculated for all academic organizational
units. This is combined with load projections from other funding sources (international
students, domestic fee-paying students etc.) to gain a total load picture for the academic
organizational unit and faculty.

4.1.7 Budget development and approval

Budget development
As part of the strategic planning and budgeting process (A/2.2) faculties, divisions and
institutes prepare and submit, for detailed review, their proposed annual teaching program
budget, along with research-related budget submissions, for the coming financial year
and two out-years.

The Division of Finance and Resource Planning liaises with the sponsors of the other
budget programs to support budget development within the specified timeframes. Upon
completion, all budget programs are consolidated into the University’s ‘consolidated
budget’ for the triennium.

Budget approval
From a management perspective budget approval authority lies with:
• Specific levels of management within organizational units who have authority
to approve draft budgets throughout the budget development process.
• Executive deans of faculty / heads of division / institute directors who will
review and approve their proposed budget prior to submission to the Planning
and Budget Department , Division of Finance and Resource Planning.
• The Executive Director, Division of Finance and Resource Planning, who is
charged with consolidating the budget at the corporate level.

Written approval from the Vice-Chancellor is required for budget transfers from the central
contingencies to the Division of Finance and Resource Planning.
The University’s consolidated budget is submitted through Vice-Chancellor’s Advisory

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Committee to Planning and Resources Committee for review and endorsement, prior to
formal submission to QUT Council for approval.

4.1.8 Budget reforecasting

In the first half and second half of each budget cycle the University will undertake
a complete review of its financial performance against the first year of the approved
budget. This review is of all budget programs, with the budget to be reforecast to reflect
the anticipated outcome for the year. The purpose of this review of annual revenue
and expenditure estimates is to make appropriate adjustments for material movements
in performance, which result in a major increase or decrease to the overall estimated
financial position of the program or activity.

In addition, faculties, divisions and institutes will undertake a formal review of their
Operating Program and Faculty Funded Research budget forecasts in the first half and
second half of each year. The reforecasting process will involve negotiations between
faculties / divisions / institutes and the Division of Finance and Resource Planning
regarding budget increases / decreases in revenue estimates, along with material
movements in anticipated expenditure performance. Any budget adjustments will occur
prior to the end of the first half and end of the second half of the year respectively.
The Division of Finance and Resource Planning will liaise with the sponsors of the other
budget programs to incorporate changes in revenue and expenditure performance.

4.1.9 Budget reporting

Under the Financial and Performance Management Standard 2009, QUT is required to
report on its budget at least once every three months. The University’s budget reporting
includes:
• Submission of Annual Budget
• First half reforecast report
• Second half reforecast report
• Financial Outcome Report.

Monthly management reports are also prepared by the Division of Finance and Resource
Planning for submission to Vice-Chancellor’s Advisory Committee and Planning and
Resources Committee.

4.1.10 Budget adjustments

Allowable budget adjustments fall within the following three categories:

a) Material Budget Adjustments: These adjustments represent significant
movement in revenue and expenditure forecasts, which impact on the
bottom line of the organizational area and/or budget program.
These adjustments are allowed at budget reforecast time only and are subject

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to negotiation between the Division of Finance and Resource Planning and

the relevant area.
b) Non-material Adjustments: These adjustments are budget neutral as they
have a nil impact on the bottom line of the organizational area and/
or budget program. These adjustments are allowed between the
months of January and December.
c) Allocations to Internal/Collaborative Projects At budget development
time organizational areas are required to identify faculty / division / institute
internally funded initiatives within the Operating Program. The allocation of
these funds to individual projects is allowed between the months of January
and December.
d) Further details are provided in the Financial Management Practice and
Procedures Manual.

4.1.11 Specific budget policies

The Financial Management Practice and Procedures Manual details specific budget
policies for application within QUT, including:

• Accrual Budgeting
• Administration Cost Recovery
• Asset Management Program Recovery
• Asset Management Plan - Capital Program Drawdown Facility
• Capital Project Budget Approval
• Capital Budgets
• Australian Government Support and HECS-HELP Funding
• Cost Attribution Policy for Research Training Scheme (RTS) and Institutional
Grants Scheme (IGS)
• Devolved Overheads
• Internal Transactions
• International College Fee Revenue
• Long Service Leave
• Performance Pool
• Retained Funds
• User Charging

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Policy on Financial Management

Date of Approval by Council:
Date of Next Review:

Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff, Students and the entire University

Policy Statement
It is the responsibility of every officer of Makerere University to ensure maximum
transparency and integrity of the University’s financial transactions and systems.

1. Accountability and Management

Subject to accountability requirements specified in the relevant legislation, Council
as the governing body of Makerere University is responsible for the management and
control of the finances of the University (UOTIA 2006). This includes responsibility for
the adoption and review of a budget for the University. Although the UOTIA permits
Council to delegate certain of its powers and authorities, Council may not delegate its
duties in relation to the annual adoption of a budget and the approval of the spending of
funds available to the University by way of bequest, donation or special grant.
In accordance with its statutory requirements, the University
• prepares annual financial statements following the close of each financial
year, certified by the Chairman of Council, the University Secretary and the
University Bursar
• submits annual financial statements to the Auditor-General
• prepares and maintains a Financial Management Practice and Procedures
Manual of policy and procedures for the University’s accounting and internal
controls
• prepares and submits to the appropriate Minister in charge of Higher
Education within four months of the close of the financial year an annual
report which includes a copy of the audited annual financial statements.

Council Finance Committee is the University’s senior financial and resource planning
body. The Committee is empowered, on Council’s behalf, to approve revisions to budgets
and formulate policy on investment management. Finance Committee assists and advises
Council on financial and resource planning for the University and receives advice in turn
from the University Secretary, regarding the educational profile, strategic plans, resource
allocation, and performance. Finance Committee also receives advice on the asset
management plan, the implementation and administration of the financial operations of
Makerere University including investment of funds, payroll, accounts and purchasing, and

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public accountability requirements.

http://www.mopp.qut.edu.au/A/A_03_03.jspAudit and Risk Management Committee of
Council assists and advises Council on risk management and audit related matters, including
the performance or discharge of functions and duties under the Financial Accountability Act
2009, the Financial and Performance Management Standard 2009 and the University’s Risk
Management Services Charter.

The http://www.frp.qut.edu.au/Finance Department prepares the University Consolidated

Annual Budget, September Budget Report, and Budget Reviews for 30 December and 30
March. In addition to this, the Department also prepares the Financial Outcomes Report, and
the Annual Financial Statements for the year ended 30 June each year.

2. Legislative environment
The financial management of the University is governed by
• Enabling legislation - the Universities and Other Tertiary Institutions
(UOTIA) Act, 2006
• The Financial Accountability Act 2009
• The Financial Accountability Regulations 2009
• The Makerere University College Statute, 2011

The accounting concepts and standards used by Makerere University are in accordance
with the Government of Uganda Financial Reporting Standards
The University’s annual financial statements and internal controls framework are audited
by the Auditor-General in accordance with the Auditor-General Act 2009 and Financial
and Performance Management Standard 2009. Members of the University community are
responsible for assisting with the satisfactory conduct of the audit as necessary and for
complying with the legislative requirements.

3. Funding allocation and distribution

Makerere University is funded from a variety of sources including the following:
• Government funding through sponsorship of students
• Student fees (Appropriation In Aid)
• substantial support for specific research projects with grant funds channeled
through other agencies, for example, the Uganda National Council for science
and Technology (UNCST)). Such agencies award grants to the University for
use by individual members of staff or a research team for a project approved
by the granting agency
• Grants for development projects or other purposes
• Investments on university lands
• Proceeds from commercial units.

Internally, funds are distributed on a monthly basis across the University based on the
Consolidated Budget. The Annual Budget development is tied closely to the University’s
planning process and is approved by Council before the end of the year prior to its

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implementation. All University funds are consolidated in one basket and re-distributed
according to a zero budget framework.

4. Financial functions, powers and authorities of the University

Makerere University is a body corporate, has a seal, and may sue and be sued in its
corporate name. Under the UOTIA, the University may
• enter into contracts
• acquire, hold, dispose of, and deal with property
• appoint agents and attorneys
• engage consultants
• fix charges, and other terms, for services and other facilities it supplies
• establish or administer trust funds.

In addition to its main teaching, research and service functions, the University is also
empowered to exploit commercially any of its facilities or resources for the benefit of the
University.

5. Responsible officers
The Vice-Chancellor, as chief executive officer, is responsible to Council for all aspects
of the institution’s management, including its financial affairs. The Vice-Chancellor is
assisted in this duty by the following direct reports:
• The Deputy Vice-Chancellor (Finance and Administration) - for administrative
aspects
• The University Secretary – for financial control and accountability
• The University Bursar - for planning, resource allocation and financial
management.

The University Secretary is responsible for ensuring that the accountability obligations
of Makerere University are met.
Heads of individual responsibility centres are responsible for the efficient and effective
management of all funds under their control and are bound by the policies and practices
set down by Makerere University in line with its financial obligations.
Detailed financial responsibilities, delegations and signing authorities are outlined in
the Financial Management and Procedures Manual.

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Policy on Asset Management

Date of Approval by Council:
Date of Next Review:

Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff, Students and the entire University

General
An asset is anything of material value and which provides a potential future economic
benefit to the University. The University Secretary is responsible for the strategic
management of the University’s assets including its property, plant and equipment.

Makerere University’s asset management framework identifies the key elements associated
with asset management, namely acquisition, use, disposal and investment. For property,
plant and equipment it considers a ‘whole of life’ approach including operational
requirements, acquisition, enhancements, and disposal of assets, all of which have an
impact on asset valuations and depreciation.
The University may control other assets under arrangements with other bodies, or under
terms of leasing or tenancy agreements.
Further details on asset management are provided in the Financial Management Practice
and Procedures Manual.

2. Cash assets
Cash assets include monies that are held in petty cash and in the University’s bank accounts
and those monies held by the Crown Agents or other approved financial institution for
short term investment purposes. It is essential that particulars of all monies due to the
University are identified and appropriately recorded so that they may be collected on
or before the due date. Staff members who collect such monies are responsible for the
safe custody of the collections from the time of receipt until deposited into authorized
University bank accounts. Procedures for management and control of monies are provided
in the Financial Management Practice and Procedures Manual.
Bank accounts may only be opened with the approval of the University Secretary and only
in the name of Makerere University. The University Secretary is responsible for authorizing
officers to operate these accounts.
Procedures for the conduct of Makerere University bank accounts are provided in the
Financial Management Practice and Procedures Manual.

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3. Receivables
A receivable is money owed to the University for goods or services purchased on credit.
Receivables include trade receivables which are sales to regular trade customers that
have been completed but not yet paid for, and student outstanding invoices.
All University debt is administered either through the student management system for
student fees or through the University’s finance system for all other activities.
Prior to performing any work or services that will result in a material debt (see Financial
Management Practice and Procedures Manual) by a potential customer to the University,
the responsibility centre performing the work or services must perform a credit check on
the customer to ensure that the likelihood of a default is minimized.

Credit notes
Credit notes are raised to cancel or amend an invoice raised in error and may only be
issued subsequent to approval being given by an officer authorized to commit funds to
specific limits, in accordance with the Schedule of Authorities and Delegations.

Write-off of debt
Debts due to the University may only be written off in accordance with the delegated
authorities to write off bad debts and assets – see Schedule of Authorities and Delegations.
Detailed procedures dealing with revenue, credit checks, credit notes, debt management
and debt write-off are provided in the Financial Management Practice and Procedures
Manual.

4. Inventories
Inventories for purposes of Makerere University assets include land held for resale and stock
held by the University Bookshop. Makerere University does not normally purchase land
for the purposes of resale, however where this is the intention the Financial Management
Practice and Procedures Manual, identifies the appropriate management and accounting
for the asset. All purchases of land must be notified to the University Secretary
Items such as stationery, spare parts, consumables and components, loose tools,
consignment stock and minor equipment held for resale to students or the public are
not considered to be assets. However, these items are to be managed and controlled as
outlined in the Financial Management Practice and Procedures Manual.

5. Other financial assets

Other financial assets include medium to long term investment funds and investments in
commercial units.

The University has a number of commercial units and treatment of these companies is
outlined in the Financial Management Practice and Procedures Manual.
Shares that are fortuitously acquired arising from prior research activity which recognizes
part ownership of the inherent intellectual property may be disposed of subject to the
financial authority of the Vice-Chancellor.
The purchase of additional shares within companies already part of the University’s

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portfolio of investments requires the Vice-Chancellor’s approval and shall only be

progressed if directly linked with a clear strategic positioning and not be speculative in
nature.
All unrealised gains and losses during the period of investment and realized gains and
losses following disposal will be accounted for centrally.

6. Property, plant and equipment

A Fixed Assets Register is maintained by the University for All Non-current Assets with
acquisition costs in excess of Shs. 5,000,000. This register records all data necessary to
identify and locate assets, together with other relevant information (eg depreciation, life
expectancy).
Assets with acquisition costs less than Shs. 5,000,000 but greater than Shs. 2,000,000
(greater than Shs. 1,000,000 for ICT equipment) are also recorded in the Fixed Asset
Register as portable and attractive items, where required.
Heads of responsibility centres should exercise efficiency and economy in acquiring assets
on the University’s behalf and observe University and Government purchasing policies.

Insurance of assets
The University Secretary oversees the appointment of an insurance broker to manage the
University’s insurance requirements.

Rental of assets
When not required for University purposes, University assets may be hired to staff and
outside bodies on terms and conditions contained in Makerere University’s policy for user
charging. Requests for new arrangements must be forwarded to the University Secretary
for consideration and endorsed by the Vice-Chancellor.

Leasing of assets
A purchase versus lease appraisal should be prepared by the college or department to
validate a recommendation to either lease or purchase an asset. Heads of responsibility
centres should obtain the approval of the University Secretary before entering into
commitments for leasing assets.

Loss or damage of assets

Heads of responsibility centres are responsible for reporting any loss of or damage to
assets as soon as possible to the Security Manager, who will take action to prevent the loss
recurring. Where appropriate, an insurance claim should be completed as per instructions
on the Finance and Resource Planning website.
In the event of a possible offence under the Uganda Criminal Code or other act or law,
the Security Manager is required to advise the police and the University Secretary, who
shall notify the Auditor-General. Where official misconduct by a member of the University
is indicated, the Security Manager must instead report the matter to the DVC (F&A) who
shall notify the Staff Tribunal. The University Secretary is responsible for ensuring that all
material losses are recorded in the Record of Material Losses Register (Non-Cash).

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Write-off of assets
Action to write-off assets must be in accordance with the delegated authority (Schedule
of Authorities and Delegations). The Vice-Chancellor can authorize the write-off of bad
debts and assets which are missing, obsolete, irreparable, at the end of their useful lives
or scheduled for replacement where the value exceeds Shs. 25,000,000. The University
Secretary can authorize the write-off of bad debts and assets up to the value of Shs.
25,000,000. Principals of college/ heads of division can authorize the write-off of assets
which are obsolete, at the end of their useful lives or scheduled for replacement or
retirement to the value of Shs. 5,000,000.

Depreciation
Assets are depreciated according to accounting standards and policies prescribed by
legislation. Depreciation is calculated by applying the straight-line method. Further
details are provided in the Financial Management Practice and Procedures Manual

Disposal
Disposal of items can be made when assets are no longer required, have reached the end of
their useful life, or are technically or economically redundant. Faculties and divisions are
provided with the flexibility of choosing how to dispose of their assets through methods
described in the http://www.frp.qut.edu.au/services/policy/financial_management_
manual/Public Procurement and Disposal Guidelines. To be able to make informed
asset disposal decisions, a disposal decision tree has been developed. If a responsibility
centre has assets which are surplus to their requirements, but still serviceable, they must
canvass other areas of the University to determine whether another responsibility centre
has a need for such assets and would be interested in acquiring those assets. Approval for
disposal of assets and write-offs is in accordance with the delegated authority.

Assets review
At minimum, an annual review of assets is to be undertaken to verify the existence of
assets recorded in the Fixed Assets Register and to assess the serviceability of those
assets (remaining life and depreciation rate). Any discrepancies are to be investigated by
the responsibility centre. Detailed procedures are provided in the Financial Management
Practice and Procedures Manual.

Heads of responsibility centres should also annually review asset usage to determine
whether excess capacity exists that may benefit another responsibility centre by mutual
arrangement.

Control of assets
In addition to the above controls, heads of responsibility centres should also:
• Implement procedures ensuring as far as possible the security of assets
under their control
• Ensure assets are properly maintained with a view to maximizing the period

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of effective use
• Ensure assets are not exposed to any hazards which may result in the
insurance contract being rendered null and void in the event of a loss.

7. Intangible assets
An intangible asset is an asset that is without physical substance, such as intellectual
property (IP) and information technology software. Software (including purchased
software) that is not an integral part of hardware is treated as an intangible asset.
Where the software is an integral part of the related hardware (for example the operating
system), it is treated as Property, Plant and Equipment.
To assess an internally generated intangible asset, the project needs to be identified at
the earliest possible stage. Internally generated assets arising from development of an
internal project must demonstrate that the asset will generate probable future economic
benefit.
Software development can be undertaken in-house and will include activities such as
design and construction, testing, specifications works, pre-production use, alternatives,
improved products, processes or service. Further details on intangible assets are provided
in the Financial Management Practice and Procedures Manual.

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Policy on Borrowing
Date of Approval by Council:
Date of Next Review:
Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff, Students and the entire University

A. Policy Statement

Makerere University may borrow, with the approval of the Permanent Secretary, Ministry of
Education, in accordance with the Universities and Other Tertiary institutions Act 2006.
The principles applying to borrowings are as follows:
• Council, following recommendation from Finance and Planning Committee, recommends
all borrowings to the Secretary to the Treasurer for approval via the Permanent Secretary,
Ministry of Education;
• borrowings must be in Uganda shillings and undertaken in Uganda;
• borrowings will generally be from approved commercial or development banks, with any
guarantee or conditions being approved by the Secretary to the Treasurer;
• funds required to meet borrowing repayments are to be accounted for in the annual
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.

B. Borrowings
Borrowings may be approved in the following limited circumstances:
• To further the University’s research activities and to commercialize intellectual property;
• To support the Asset Management Program;
• To address unexpected shortfalls in cash flows.

The University Secretary has delegated authority, following endorsement of each request by the
Vice Chancellor, to approve access to funds from commercial banks 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 Asset Management Plan.

C. Records and reporting

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The University Secretary ensures that all borrowings are recorded in a central register and that
source documents are safeguarded.
The University Bursar provides a status report on borrowings as part of the quarterly report to
Finance and Planning Committee.

Policy on Expenditure of University Funds

Date of Approval by Council:
Date of Next Review:

Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff, Students and the entire University

Policy Statement
The University is a Statutory Authority pursuant to the Financial Accountability Act 2009 and
is subject to the same legislative and policy requirements as applies to other government
and semi-governmental agencies. This includes the Act itself and subordinate guidelines, as
well as other pronouncements such as the Public Procurement and Disposal Procedures. This
framework is generally not prescriptive on what can or cannot be charged to the University’s
accounts except to state that all expenditure must be for official purposes and must not, except
in special cases (such as “ losses and special payments “ as defined) be for private purposes.
The University derives a major part of its funds from the Government, but is increasingly
reliant upon student fees and its commercial endeavours to support its operational and capital
requirements. The University is therefore required to administer its expenditure in a manner
which adheres to standards of public sector accountability, but which also supports the
flexibility required of an institution operating within a more commercial framework.

Official Expenditure
Expenditure is to be incurred for official purposes only and, if required, officers must be able
to identify the relationship or nexus between the expenses and the official business of the
University.
Under no circumstances shall University expenditure be incurred for personal or private
purposes.
Prior to committing to the expenditure of money, an appropriately delegated officer must
ensure that the expense:
• is an appropriate and reasonable use of University funds
• is subject to available funding
• complies with all applicable legislation
• is able to withstand public scrutiny
• is the most economical and effective outlay for its purpose
• is appropriate for the effective operation of the University

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• is to be incurred in line with approved University procedures (eg University Procurement

Regulations).

Expenditure must be able to be supported on the basis of reasonableness and be publicly

defensible. Expenditure is to be properly declared and documented.

Authorization of Expenditure
Ultimate responsibility for the correct expenditure of University funds rests with Makerere
University Council.
Council has delegated authority to the Vice-Chancellor to expend funds within approved
budget limits and consistent with the University’s plans, policies and procedures. However, the
expenditure of funds made available to the University by way of bequest, donation or special
grant must be approved by Council, in accordance with the UOTIA.
Subject to the availability of funds within approved budget limits, and consistent with the
University’s plans, policies and procedures, the Vice-Chancellor has delegated commitment of
the following expenditure levels (exclusive of VAT, where applicable), on behalf of the University,
to senior officers of the University as follows:

The Vice-Chancellor has delegated authority to the University Secretary to approve further
delegations below the level of head of school / department / independent section, including
delegations for corporate card expenditure and petty cash, to commit up to (exclusive of
VAT, where applicable), on behalf of the University, subject to the availability of funds within
approved budget limits and consistent with the University’s plans, policies and procedures.
Delegations relating to expenditure associated with business-related hospitality and official
functions are detailed in the University’s policy on hospitality and catering.
Business cases must be prepared and approved for expenditure on projects and/or initiatives in
accordance with the Makerere University Business Case Framework Decision Matrix . Business
cases are used as the primary supporting documentation for securing funding through the
University’s Asset Management Plan (AMP).
Business cases must be completed in accordance with the provisions of the Financial
Management Practice and Procedures Manual.

Deputy Vice-Chancellors / Heads of Division Up to

Principals of Colleges Up to
University Bursar Up to
Dean of school or equivalent / Centre Directors / heads of
department or independent section Up to

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Policy on Private or Un-Official Expenditure

Date of Approval by Council:
Date of Next Review:

Policy Administrator:
Policy Implementation:
• Overall:
• Assistance:
• Application Staff, Students and the entire University

Overview
Items that fall under the category of official expenditure are in most cases obvious. They are
those expenses that clearly relate to the carriage of official duties and responsibilities. This
would include payments relating to entitlements and conditions of employment such as official
travel expenses payable to a staff member.
However the issue of what “ should not “ be charged to the accounts of the University is subject
to judgment in terms of the relationship, either direct or implied, of that expenditure to the
carriage of official duties and responsibilities. Examples of expenditure in this grey area, which
requires particular discretion by financial delegates prior to approval, include expenditure on
entertainment, purchases such as flowers for special occasions, and any expenditure that on
face value could be argued to be private in nature (such as outlays for non-official goods and
services).

All financial delegates need to err towards caution in considering whether these type of
expenditures should be approved, and if any doubt exists, the circumstances underpinning
the authorization should be fully documented. All authorizations of expenditure need to be
“publicly defensible “. For contentious items the appropriate financial delegate must be a
senior officer in the University (principal of college or head of division, or a higher position if
necessary) and if doubt exists the University Bursar should be consulted.
Financial delegates authorizing expenditure must ensure that account codes properly portray
the nature of the expenditure and the program against which the expenditure has been charged.
Under no circumstances, should a financial delegate approve reimbursement claims for
themselves. All reimbursements must be approved by the University officer’s immediate
superior, or a higher position if necessary and in accordance with relevant University policies
and procedures.

2. Non-official or private expenses

Non-official or private expenses should not be provided unless a reasonable nexus can be
established between the expenditure and the carriage of official duties and responsibilities.
Examples of expenses that are generally regarded as non-official include:
• Non-official entertainment and travel costs (eg excessive or lavish entertainment
expenditure and, whilst travelling, personal video hire fees, mini-bar alcohol

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consumption, personal grooming, recreation activities etc)

• Tips or gratuities (except when the University officer is travelling on official
business in a country in which it is customary)
• Dinners/functions at a University officer’s private residence (unless specifically
authorized by the Vice-Chancellor before the event)
• Casual drinks (off campus)
• parking for non-business related trips
• valet parking (unless there are no other alternatives)
• Parking and traffic fines
• Gifts of an essentially private nature (eg birthday or wedding gifts for staff
members).

It is acknowledged that there will be circumstances in which a proportion of expenditure is

non-official or private (e.g. hotel accounts containing private phone call charges, mobile phone
accounts containing private call charges). The private component of these charges should be
settled privately and not charged to the University by credit card or account.

Nature of expenses unclear

In circumstances where the nature of expenses is unclear, the University officer should meet
the expense in the first instance and subsequently submit a claim with appropriate rationale to
Corporate Finance for determination.

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