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Home > About the University > Policy Directory > Consultancy Expenses Guidelines

CONSULTANCY EXPENSES GUIDELINES

Date approved:	18 August 2008	Date Guidelines will take effect:	On approval	Date of Next Review:	2010
Approved by:	Associate Director, Financial Services
Custodian title & e-mail address:	Associate Director, Financial Services Finance_managers@uow.edu.au
Author:
Responsible Faculty/Division & Unit:	Financial Services Division
Supporting documents, procedures & forms of these guidelines:	Nil
References & Legislation:	Commercial Research Policy Travel and Entertainment Policy Delegations of Authority
Audience:	Public – accessible to anyone
Expiry Date of Guidelines:	Not applicable

Contents

• 1 Introduction / Background 2
• 2 Scope / Purpose 2
• 3 Definitions 2
• 4 Control of Accounts 2
• 5 Expenditure from Accounts 2
• 6 Expenditure Control 3
• 7 Roles & Responsibilities 3
• 8 Version Control Table 3

1 Introduction / Background

• 1. The University’s Commercial Research Policy advises that:

“UOW believes that the specialist experience and skills of its academic staff members should be made available to the wider community. Academic staff members are therefore encouraged to undertake commercial research to share their expertise and experience and to transfer knowledge from UOW to the wider community.”

• 2. The nature of expenditure that should be made from contract research and consultancy income is provided for in these guidelines.

2 Scope / Purpose

• 1. The purpose of these guidelines is to provide guidance in regard to:
• a. control of accounts in the University’s financial system;
• b. the nature of expenditure which is appropriate from an individual’s account; and
• c. the controls that should be exercised in approving expenditure from accounts.

3 Definitions

4 Control of Accounts

• 1. The University has established procedures to control the establishment of new cost centres or accounts within its business systems. In terms of contract research or consulting accounts, one of the following Financial Services Division officers must approve the new account before it is created:
• a. Management Accountant
• b. Commercial Analyst
• c. Research Grants Finance Officer
• 2. It is expected that Deans or Heads will ensure that accounts remain in credit. That is, management control is exercised when requests for expenditure are made to ensure sufficient funds are available in accounts to cover the payment required.
• 3. Should an account record a deficit balance, this will be transferred to the Housekeeping account for the department or unit. Financial Services will review and action such accounts periodically.
• 4. Where accounts remain inactive for a continuous period of 18 months, (i.e. no transactions recorded for 18 months), the account owner will be contacted to determine the status of the account. If no transactions are recorded after 24 months the balance will be cleared to the Housekeeping account of the department or unit. The account will then be disabled in the financial system.
• 5. Where a staff member resigns from the University, any balance remaining from consulting activities may be paid as salary. Funds remaining in contract research accounts vest in the University. For such accounts the balances will be transferred to the Housekeeping account of the department or unit. The account will then be disabled in the financial system.

5 Expenditure from Accounts

• 1. A range of expenditure items may be charged to contract research and consultancy income accounts. In general terms such expenditure should be integral to the employment activities of the individual concerned.
• 2. The following are the types of expenditure that would be expected to be incurred:
• a. salaries & wages (including overtime & other oncosts) of staff undertaking the consultancy or contract research;
• b. equipment – calculators, computers, electronic work organisers, teaching aids, audio/visual items;
• c. books & journals;
• d. professional subscriptions;
• e. travel & entertainment expenses in accordance with the University’s Travel and Entertainment Policy;
• f. conference fees and other self-education expenses;
• g. stipends.
• 3. It should be noted that any equipment purchased from consultancy funds remains the property of the University.
• 4. It is University policy to lease rather than purchase motor vehicles. It follows that lease payments and running costs for vehicles typically extend over at least a two year period. Given the nature of contract research and consultancy income, in most cases it will be inappropriate to use these funds to acquire a motor vehicle. Where such a need is identified the request should be reviewed by the Dean and referred to the Director of Financial Services for approval.
• 5. Any other expenditure of a private or personal nature is generally prohibited and may give rise to a tax liability for the staff member concerned.

6 Expenditure Control

• 1. All purchases and payments must conform to the University’s policies in regard to Corporate Credit Card and Purchasing & Procurement.
• 2. Accordingly, all transactions must be evidenced by tax invoices/receipts from suppliers of goods and services.
• 3. All expenditure must be approved in accordance with the University Delegations of Authority Policy
• 4. All requests for approval of spouse travel expenses must be referred in advance to the Vice Principal (Administration) or Vice-Chancellor for consideration.
• 5. No staff member should approve their own items of expenditure.

7 Roles & Responsibilities

• 1. Roles and responsibilities are as detailed in these guidelines.

8 Version Control Table

Version Control	Date Effective	Approved By	Amendment
1	18 August 2008	Associate Director, Financial Services	Formalisation of existing guidelines
2.	6 May 2009	Vice- Principal (Administration)	Migrated to the Procedure Template as per the Policy Directory Refresh Project.