Update on Policies and Procedures

1. Update on Policies and Procedures Financial Operations

2. Definitions of Policies and Procedures • Policy on policies • Intent and objectives • To ensure that University policies and procedures are necessary, current, relevant and useful by providing a framework for their design, approval, implementation, monitoring and review. • That University policies and procedures are clear, concise and consistent, and are communicated to staff and students as appropriate; that the content is up-to-date and reflects the requirements of the University. • Scope • All RMIT policies. • Exclusions • None • Provisions • 1. Policy • 1.1. A policy is a formal statement of the University’s position which enables decision-making and has ongoing application across RMIT. • 1.2. There is only one level of policy - University-wide. • 1.3. Policies shall be consistent with relevant Federal and State legislation, and University Statutes and Regulations. • 1.4. Policies shall normally be reviewed every five years and developed, amended or updated as required. • 2. Procedures • 2.1. A procedure documents the processes or actions required to implement a policy. • 2.2. All procedures relate to a policy and are consistent with the policy to which they refer. • 2.3. There is only one level of procedure - University-wide. • 2.4. Procedures shall normally be reviewed every five years. • 3. Policy and Procedure Development • 3.1. The University will develop and maintain a set of policies and procedures and set priorities for development and review. • 3.2. A policy and its procedures are to be developed by the appropriate organisational unit in consultation with relevant stakeholders, committees and the University Secretary. • 3.3. Policies and procedures will be sponsored by a member of the Vice-Chancellor’s Executive before development can commence. • 3.4. The University Secretariat will provide advice and sign-off on policy and procedures before they are submitted to the relevant approval authority. • 3.5 A review schedule is maintained by the University Secretariat and reported to the Vice-Chancellor on an annual basis. Financial Services, Financial Operations

3. Definitions of Policies and Procedures continued • 4. Policy Implementation Plan • The Policy Implementation Plan shall describe the actions and resources required by the operational area responsible to communicate and/or implement the policy and procedures or the amendments to the policy and procedures. The Implementation Plan shall be submitted to the relevant authority for approval together with the policy and procedures. • 5. Approval of new policies and procedures • 5.1. All new policies and procedures and major revisions of policies and procedures shall be submitted to the Vice-Chancellor’s Executive for consideration prior to being submitted for approval. • 5.2. All new academic policies and procedures and major revisions of academic policies and procedures shall be submitted to the Academic Board for comment. The comments will be taken into account in preparation of final documents for approval. • 5.3. Governance policies shall be approved by Council. • 5.4. Governance procedures shall be approved by the Vice-Chancellor and reported to Council. • 5.5. Academic policies and procedures shall be approved by the Academic Board. Decisions shall be reported to Council. • 5.6. Services policies and procedures shall be approved by the Vice-Chancellor. Decisions shall be reported to Council. • 6. Amendments to policies and procedures • 6.1. Substantive amendments to policies and procedures shall be approved by the relevant approval body (as outlined in clause 5). • 6.2. Minor nomenclature changes, changes to correct errors or clarifications of wording shall be approved by the University Secretary. • 6.3. Minor amendments to academic policies and procedures to reflect legislative changes or for consistency between policies and procedures shall be approved by the Vice-Chancellor and reported to Academic Board and to Council. • 6.4. Minor amendments to services and governance policies and procedures to reflect legislative changes or for consistency between policies and procedures shall be approved by the Vice-Chancellor and reported to Council. Financial Services, Financial Operations

4. List of updates to Financial Operations’ Policies and Procedures Financial Services, Financial Operations

5. List of updates to Financial Operations’ Policies and Procedures continued Financial Services, Financial Operations

6. List of updates to Financial Operations’ Policies and Procedures continued Financial Services, Financial Operations

7. List of updates to Financial Operations’ Policies and Procedures continued Financial Services, Financial Operations

8. Important highlights in the latest Policies and Procedures Doubtful and Bad Debts, Trade Debtor Invoicing • All sales made to customers who have not been approved for credit are to be made on a ‘cash on delivery’ basis only. • Bad debts are expensed against the relevant school/department. • During the financial year estimated provision for doubtful debts is recorded based on the aged trial balance: 360 days overdue100% ,271–360 days overdue 50%1, 81–270 days overdue 40% • Credit Limits [note: government agencies and departments are not subject to credit limits]: $5,000 Business check only; $5000 to $50,000 Payment analysis, $50,000 to $100,000 Payment analysis and ASIC check, $100,000 ‘Credit Check’ report except government agencies Expenditure • The University will ensure that all expenses it incurs are based on contracts with suppliers (external public and private sector organisations and individuals). • Contracts must be signed on behalf of RMIT University only by persons who are fully aware of the University’s obligations attached to the expenses incurred and in accordance with the Delegations Policy and schedules. • Be aware that a new Contract Policy is in place that highlights details of the legal obligations of the person signing the contract. • Small-value transactions should be paid by departmental Pcard where possible. • Purchases can be made without purchase orders for the following: • physical goods less than $20,000 • procurement of emergency replacement items • recurring services up to the total value of $20,000 • travel arrangements facilitated by the travel approval process. • Exceptions to this rule are for the Library, where all purchase orders and invoicing for books, periodicals and subscriptions are made via the ILMS system and then uploaded to SAP. • If the total value of goods or services is higher than $20,000 a purchase order must be raised. Financial Services, Financial Operations

9. Important highlights in the latest Policies and Procedures continued Property, Plant and Equipment (PPE) and Intangible Assets Policy PPE is defined as Property, Plant and Equipment with a capitalisation value as approved by RMIT’s Council on an annual basis and with a useful life over one year: • plant • office furniture • motor vehicles • land and buildings • furniture and fittings • equipment • artwork • library collection • leasehold improvements • leased assets acquired under finance lease or hire purchase arrangements • assets held off-campus Intangible Assets, for the purpose of their management at RMIT, are defined as: • goodwill • intellectual property Financial Services, Financial Operations

10. Important highlights in the latest Policies and Procedures continued Approvals are required for all new or replacement items: • The expenditure of University funds on capital items with a value over $50,000 requires approval from the Capital and Investment Review Board (CIRB), and sign-off by the relevant Head of School or equivalent Pro Vice-Chancellor. • Assets under $50,000, but exceeding in aggregate the College/Portfolio’s discretionary allocation previously approved by CIRB, must go to CIRB for approval. • Equipment purchased under a specific grant does not require CIRB approval. • To obtain CIRB approval, the College/Portfolio must submit to the board a Capital Expenditure Proposal Form and supporting details for the acquisition. CIRB will advise the College/Portfolio directly regarding their approval to purchase. • For vehicle purchases, the type of vehicle will be determined by the university’s budget and is limited to four-cylinder or six-cylinder cars or station wagons. The university will acquire vehicles with regard to their fitness for purpose and total cost of ownership. • The preferred vehicles are Holden, Ford or the limited number of other Australian-manufactured cars. Modifications to vehicles are limited to airconditioning, ABS brakes, automatic transmission, cruise control and a cargo barrier for a wagon. • Capital and Investment Review Board (CIRB) grants approval for the acquisition of departmental/pool vehicles on request of the relevant head of school/department. • Pool vehicles are not to be used for private purposes unless approved by the relevant Vice-President. • If a pool vehicle is used by school/portfolio staff for personal purposes for more than 25% of the year or for less than 20,000 km per year, the use of the vehicle may be withdrawn unless a claim is made to substantiate the use in the following year. Financial Services, Financial Operations

11. Important highlights in the latest Policies and Procedures continued • Purchases can be made without purchase orders for the following: • physical goods less than $20,000 • procurement of emergency replacement items • recurring services up to the total value of $20,000 • travel arrangements facilitated by the travel approval process. • Exceptions to this rule are for the Library, where all purchase orders and invoicing for books, periodicals and subscriptions are made via the ILMS system and then uploaded to SAP. • If the total value of goods or services is higher than $20,000 a purchase order must be issued. For one off purchases without the purchase order • Where the amount to be expended is estimated to be • Minimum quotation/tender requirement unless exemption granted $2,500 or less One verbal or written quote. Between $2,500 and $25,000 One written quote. • Building, infrastructure & equipment: • Where the amount to be expended is estimated to be • Minimum quotation/tender requirement unless exemption granted $25,000 or less One written tender / proposal which is consistent with current market prices. Financial Services, Financial Operations

12. Draft Cost Capitalisation Procedure Items can be recognised as capital only if the appropriate authorisation process was adhered to as per Property Plant and Equipment Policy and Procedure. Treatment of costs – Capital versus Expense Financial Services, Financial Operations

13. Weblink for Financial Services Policies and Procedures: http://www.rmit.edu.au/browse;ID=perwdpeb8h53 Procedure currently under development: Third Party Invoicing Contact: Please call deputy Director Financial Operations – Natalia Hawkins x50651 if you have any questions, amendments, suggestions, etc on Financial Policies and Procedures. Financial Services, Financial Operations