/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 Policy

Financial Policy

Policy 

1. Procedures 

1. Revenue shall be recognized on the full accrual accounting basis in accordance with IFRS.  Revenue shall be recognized when it has been earned, regardless of the timing of the related cash receipts. 

2. Tuition fees, regardless of the time at which they are received, are recognized equally over the duration of the related semester and academic year.

3. Activity, registration and other student fees are non-refundable unless the student withdraws before the deadline stipulated in  S6.10 Student Finance Policy. Such revenues are recognized during the period in which they are collected. 

4. Revenue that has been earned but not yet billed or received in a period shall be accrued for and recorded as revenue in that period.  An asset (accounts receivable) is recognized on the balance sheet for the revenue as well. 

5. When cash is received in advance, the receipt is recorded and a deferred revenue liability is recorded. The deferred revenue liability account will be reduced as the revenue is recognized over the duration of period for which the cash was paid. 

6. Tuition fees and income are reported net of any applicable discounts taken at the time of tuition payment. 

7. The Finance Manager will prepare forms of major and minor receipt vouchers, and financial notes.  

8. The collection of University's funds will be done through official vouchers with a copy given to the payer. All collected funds shall be entered in the relevant chapter and account in the general budget of the current fiscal year. Instructions on how to collect, register, save, and deposit these funds are discussed in FR 8.4 Cash Management Policy. 

9. Non-tuition revenues will be refunded to the payer if these funds were collected by mistake or in an unjustified way. Other refunds require the President's approval upon the recommendation of the Finance Manager.

 

 

2. Student Billing & Collections: To establish responsibility and authority for the billing, collection and administration of student tuition, fees and other charges.  For detailed student tuition, registration and other fees, refund and other related information, please refer to UD Policy S 6.10 Student Finance Policy.

• Student tuition and fees must be approved by the BOT. 
• The Finance Department is responsible for the billing and collection of all student charges. 
• Tuition and fees shall be assessed on a semester basis.  All charges will be billed in total at the time of registration. 
• No outstanding student receivable balances are to be written off of accounts receivable unless all actions to collect the amounts have been exhausted and thoroughly documented. This needs the approval of the UD President. 
• All invoices issued from the Finance Department related to short courses, professional certificate programs and other activities of the CED, Confucius Institute and IERCEFZ must include the date and duration of the related program prior to formal issuance. 

3. Expenditures  

1. Expenditures are disbursed from the amounts allotted in the budget, according to orders for payment issued by the President.  

2. Payments will be made as per the financial vouchers (i.e. supporting documents) after they have been reviewed and approved by the President.  

3. Payment of University expenditures can be made in cash, cheques or transfer orders as per instructions of the Finance Manager.  

4. It is not allowed to commit any amount for recurrent expenditures or for payment, except in the limits specified in the budget.  

5. The BOT appoints the persons authorized to sign checks, money transfers, and other banking transactions on behalf of the University. The BOT also specifies their authorities.  

6. Payment transactions from the bank account shall be authorized first by the President and a member of the BOT.  

7. Financial rights may not be claimed after five years of the due date except when the claimer has an excuse accepted by the President precluding him/her from claiming such rights.  

8. External purchases, including subscription to journals and periodicals, are paid through letters of credit or bank remittances. Payments may be done in one payment or in several payments on account, or in advance, provided that guarantees are obtained to ensure that the purchases are delivered on time and within the required specifications.  

9. All payments other than payroll exceeding AED 1,000,000 shall be signed by the UD President and counter signed by an authorized member of the BOT. 

 

4. Internal Auditing and Reports 

• All University financial actions will be subject to internal auditing. This control will have the following duties:  

• Control the movement of University assets in banks and other financial institutions on a continuous basis.  

• Control the movement of University assets and taking stock of inventory on an annual basis.   

• Audit payment vouchers before payment is done and entry vouchers before issuing them.  

• Sign all financial obligations in order to secure funds in the budget.  

• Verify that the figures in the final accounts are correct before presenting them to the relevant authorities.  

• Ensure the availability of the allotted amount in the budget and that it is not exceeded. 

• The Internal Auditor shall provide the President and Audit Committee with a monthly report of the financial status of the University showing revenues, expenditures, and cash flow. 

• The Internal Auditor will initially present the University’s annual financial reports to the Financial Committee for discussion and review. The reports will then be forwarded to the Audit committee,within two months after the end of the fiscal year, for approval and endorsement.  

• The BOT, upon recommendation from the Audit committee, shall appoint external auditors to audit the University accounts and issue the final financial statements. Details related to external audit are discussed in Policy FR 9.1 External Audit Policy.  

 

5. Bank Reconciliation Policy 

1. All incoming or outgoing funds to the University’s bank accounts must be recorded in the general ledger on a timely basis. 

2. Frequent bank reconciliation of all UD accounts is essential to prevent fraud and to ensure the University’s funds are handled with fiscal and fiduciary responsibility. More specifically, reconciling the bank statement balance with the book balance (general ledger) is necessary to ensure that:

   • All receipts and disbursements are recorded;

   • Cheques are clearing the bank in a reasonable time; 

   • Reconciling items are appropriate and are being recorded; and  

   • The reconciled cash balance agrees to the general ledger cash balance. 

3. The Finance Manager shall develop and maintain documented procedures for reconciling each bank account held by the University. 

4. Automated matching rules such as First Notice Rules, Bank Reconciliation Rules or other auto matching rules shall be utilized to the extent possible in order to maximize auto-reconciliation rates within UD Financials. In the absence of auto matching rules, manual processes will be utilized. 

5. The Finance Manager shall identify and resolve reconciling items on a timely basis. Any unmatched book/bank lines or other reconciling items should be corrected within 120 days of the reconciled month. Any reconciling items outstanding greater than 120 days will be recorded in other operating revenue or other operating expense in the Finance Department. 

6. Bank reconciliation should be done on a monthly basis and within 20 business days of the end of the month. 

7. Bank account reconciliations will be prepared by theFinance Assistant Manager and approved by the Finance Manager. Their signatures on the bank account reconciliation summary confirms that the reconciliation accurately presents the status of the account at the bank as well as on the general ledger. This must be done by the last day of each month. 

8. The original bank account reconciliation summary will be filed in a separate file with the Finance Manager. 

9. Both hard copy and electronic files will be maintained in and will be made available upon request. 

10. Bank reconciliation is the responsibility of the Finance Manager.   

 

6. Authority to Enter Into Contracts 

1. Any contractual agreement that includes financial implication or economic value should be planned and budgeted by the concerned unit, and approved by the UD President.  

2. The contract clause, conditions and payment terms shall be discussed and approved by the Finance Department in concurrence with the concerned department/unit.  

3. Once contracts are approved and signed, the original copy is forwarded to the Finance Manager for recording, reporting, and archiving. 

4. Extensions and renewals of contracts shall also require subsequent approval when standard forms are used unless there will be substantive changes or additions or any substantive financial implication.