/Institutions/University-of-Dubai/json/2024-2025/Policy-and-Procedure-Manual-local.json

/Institutions/University-of-Dubai/json/2024-2025/Policy-and-Procedure-Manual.json

Policy and Procedure Manual 2024-25 > Fiscal Resources and Financial Management and Budgeting > Financial Guarantee Policy and Procedures

Financial Guarantee Policy and Procedures

Policy 

Procedures 

1. The financial year for University of Dubai is 1 January to 31 December. In order to maintain the financial guarantee; an annual budget will be completed in September each year for discussion and approval by the BOT at its following meeting. Once the budget has been approved it will be entered into the financial system and cash flow will be prepared for the following year. Financial reporting will be completed by the Finance Department on a monthly basis and provided to the Audit and Risk Committee in the first instance. Financial reporting will be completed as soon after month end as possible. Financial reporting will include the following components: 
   

   1. A consolidated profit and loss for the group’s activities. 

   2. A consolidated balance sheet as at month end.

   3. Commentary from the President, VPAA and DOA on significant variances between budget and actual figures.

   4. Budget re-forecasting will be undertaken after each quarters’ actual  budget analysis has been completed. Re-forecasting will be completed on the basis of a forward looking realistic year-end financial position based on all of the knowledge and data available. 

   5. A monthly aged debtors list.

   6. Finance Department managing the following risk and having a strong control to mitigate them 

   
   

2. Liquidity Risk:  The University’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the University’s reputation.

3. Market Risk:  The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk.

4. Currency Risk: The University does not have any significant exposure to foreign currency risk as most of its transactions are denominated in UAE dirhams.

5. Interest Rate Risk: The University is exposed to interest rate risk on its deposit held with a related party.

6. Capital Management: The University’s policy is to maintain a strong capital base to sustain future development of the academic activities. 

7. The University of Dubai is supported by the Dubai Chambers to strengthen the financial guarantee. The Ruler’s Court of Dubai appoints the Board of Directors of the Dubai Chamber. The BOT of the University of Dubai is drawn from the Dubai Chamber’s Board of Directors. The UD BOT is responsible for determining the strategic objectives and necessary funding for the University. It considers and monitors proposals from UD for all aspects of strategy, academic portfolios, development, policy making, regulations and funding to support students and staff. Moreover, the University of Dubai has a deposit of 55 million with Dubai Chamber and is gaining a yearly interest, which supports the financial position of University of Dubai.