Financial responsibilities of the Board of Governors

The board is responsible for keeping proper accounting records which disclose with reasonable accuracy at any time the financial position of the university and to enable it to ensure that the financial statements are prepared in accordance with the Education Reform Act 1988, the Instrument and Articles of Government, the Statement of Recommended Practice: Accounting for Further and Higher Education, and other relevant accounting standards. In addition, under the OfS Terms and Conditions of Funding for Higher Education Institutions the Board, through the Vice-Chancellor, is required to prepare financial statements for each financial year which give a true and fair view of the state of affairs of the university and the surplus or deficit and cash flows for that financial year.

In causing the financial statements to be prepared, the board must ensure that:

• suitable accounting policies are selected and applied consistently
• judgements and estimates are made that are reasonable and prudent
• applicable accounting standards have been followed
• financial statements are prepared on a going concern basis unless (see below). 

The board must also take reasonable steps to:

• ensure that funds from the OfS are used only for the purpose for which they have been given and in accordance with the OfS Terms and Conditions of Funding for Higher Education Institutions and any other conditions which the OfS may from time to time prescribe.
• ensure that there are appropriate financial and managerial controls in place to safeguard public funds and funds from other sources.
• safeguard the assets of the university and to prevent and detect fraud.

The board must be satisfied that the university has adequate resources to continue in operation for the foreseeable future; for this reason, the going concern basis continues to be adopted in the preparation of the financial statements.