Understanding University Governance and Finance: Insights from a Bursar
Explore the evolving landscape of governance and finance in universities through the perspective of Mrs. Oluwafunmilola Adekunle, the Bursar at the University of Lagos. Key topics covered include the role of the bursary in financial governance, funding sources, budgetary control, and financial challenges. Gain a deeper understanding of the financial dynamics within academic institutions.
- University Governance
- Finance Management
- Bursar Responsibilities
- Financial Sustainability
- Funding Sources
Download Presentation
Please find below an Image/Link to download the presentation.
The content on the website is provided AS IS for your information and personal use only. It may not be sold, licensed, or shared on other websites without obtaining consent from the author. Download presentation by click this link. If you encounter any issues during the download, it is possible that the publisher has removed the file from their server.
E N D
Presentation Transcript
GOVERNANCE & FINANCE IN THE UNIVERSITY: WHAT HAS CHANGED AND THE EXPECTATIONS? PRESENTED BY: MRS OLUWAFUNMILOLA ADEKUNLE, (FCA) BURSAR UNIVERSITY OF LAGOS AT TRAINING FOR DEANS, DIRECTORS AND HEADS OF DEPARTMENT. 22ND AUGUST, 2023.
HIGHLIGHTS MEANING AND SCOPE OF GOVERNANCE AND FINANCE IN THE UNIVERSITY ROLE OF THE BURSARY IN FINANCIAL GOVERNANCE FUNDING SOURCES BUDGET AS A CONTROL TOOL IN FINANCIAL CHALLENGES IN BUDGET IMPLEMENTATION APPROVAL THRESHOLDS FINANCIAL PROCESS WHAT HAS CHANGED? OBJECTIVES OF THE PRESENTATION
OBJECTIVES OF THE PRESENTATION TO ESTABLISH BETTER UNDERSTANDING OF GOVERNANCE IN THE UNIVERSITY OF LAGOS ESPECIALLY IN RELATION TO FINANCIAL MATTERS. TO IDENTIFY THE SOURCES OF FUNDS AVAILABLE TO THE UNIVERSITY, USES AND FINANCIAL PROCESS. TO UNDERSTAND THE FINANCIAL ROLES OF DEANS AND HEADS OF DEPARTMENTS IN THE UNIVERSITY.
MEANING OF GOVERNANCE AND FINANCE GOVERNANCE Process of the act or function of exercising authority to regulate the activities of an organization. Process of decision making and the process by which decisions are implemented or not implemented (enforcement). It involves putting structures in place to ensure accountability and transparency. FINANCE the management of money which includes all activities from forecasting/ budgeting, savings, lending etc Financial governance, I will say, is making decisions on how to manage the financial activities of the University effectively in a way to achieve the organizational goals (visions of the Institution).
ROLE OF THE BURSARY IN FINANCIAL GOVERNANCE RESPONSIBLE FOR THE DAY-TO-DAY ADMINISTRATION AND CONTROL OF THE FINANCIAL AFFAIRS OF THE UNIVERSITY. IT IS HEADED BY THE BURSAR WHO IS, BY THE UNIVERSITY OF LAGOS ACT, THE CHIEF FINANCIAL OFFICER OF THE UNIVERSITY. EACH FACULTY HAS A FINANCE OFFICER (BURSAR S REPRESENTATIVE) WHO PROCESSES ALL FINANCIAL TRANSACTIONS AND ADVICES THE DEAN OR HOD ON FINANCIAL PROCESSES. THEY IMPLEMENT AND ENFORCES FINANCIAL PROCESSES. THE DEANS AND HODS ARE THE CHIEF ACCOUNTING OFFICERS IN THEIR RESPECTIVE FACULTIES AND DEPARTMENTS.
FUNDING SOURCES PERSONNEL OVERHEAD CAPITAL BUDGETARY ALLOCATION TETFUND NEEDS CONSTIUENCY GOVERNMENT INTERVENTIONS Tuition from Part time and Postgraduate programmes Rental income generated on properties Student sundry charges (application fees, convocation, transcript, accommodation etc.) Facilities and Administrative charges Contributions/investment income INTERNALLY GENERATED REVENUE
BUDGET AS A CONTROL TOOL IN FINANCIAL MANAGEMENT A BUDGET IS AN ESTIMATION/PLAN OF REVENUE AND EXPENSES OVER A SPECIFIED FUTURE PERIOD OF TIME THAT IS RE-EVALUATED ON A PERIODIC BASIS (USUALLY ANNUALLY). ZERO BASED BUDGETING IS A BUDGETING SYSTEM IN WHICH PROGRAMMES /PROJECTS MUST BE JUSTIFIED FOR EACH NEW BUDGET PERIOD. THE ZBB PROCESS SEEKS TO JUSTIFY INDIVIDUAL RESOURCE ALLOCATION PLANS, REGARDLESS OF PRIOR YEARS PROVISIONS AND DISCOURAGES THE PRACTICE OF REGULAR INCREMENTAL BUDGET ADJUSTMENTS. EACH PROJECT IS TO BE CAREFULLY SCRUTINIZED BEFORE RESOURCES ARE ALLOCATED. IN OTHER WORDS, THE PROCESS PLACES EMPHASIS ON ACTUAL NEEDS, NOT WANTS. TO THIS END, PROJECTS AND PROGRAMMES SHOULD BE CAREFULLY SCRUTINIZED AND JUSTIFIED. PROPOSALS MAY BE CAPPED WHERE NEEDS EXCEED RESOURCES. A BUDGET HAS TWO SIDES. HOW MUCH FUNDS ARE REQUIRED (EXPENDITURE) AND HOW THESE FUNDS WOULD BE MET (REVENUE).
BUDGET AS A CONTROL TOOL IN FINANCIAL MANAGEMENT CONTD IN PLANNING AND EXECUTION OF THE BUDGET, REVENUE IS A MAJOR CONSTRAINT. EXPENDITURE IN BUDGET MAY BE LIMITED BY THE INABILITY TO REALIZE PROPOSED REVENUE. ABILITY TO FUND THE EXPENDITURE BUDGET DEPENDS LARGELY ON THE REALIZATION OF REVENUE BUDGET. THEREFORE, OUR INTERNALLY GENERATED REVENUE (IGR) EFFORTS AND RELEASES BY GOVERNMENT ARE CRITICAL TO BUDGET EXECUTION. ANOTHER WAY, APART FROM THE REALIZATION OF THE REVENUE BUDGET, IS ALSO TO MINIMISE COST/EXPENDITURE CONCERTED EFFORT IS THEREFORE INSTITUTED TO ENSURE THAT CASH INFLOWS ARE PLANNED, MONITORED AND EVALUATED FROM TIME TO TIME WITH A VIEW TO ALIGNING EXPENDITURE WITH REVENUE.
CHALLENGES IN BUDGET IMPLEMENTATION PERSISTENT SHORTFALL IN BUDGETED INFLOWS. INFLOWS OF REVENUE (FROM GOVERNMENT AND IGR) ARE OFTEN BELOW THE BUDGET MARK THEREBY REDUCING THE ALLOCATION (RESOURCES) REQUIRED TO FUND THE BUDGETED EXPENDITURE. GROWING CONTINGENCY EXPENDITURE PROFILE INCLUDING EXTRA-BUDGETARY EXPENDITURE. HIGH RATE OF INFLATION OVER-PRICING POOR PERFORMANCE OF OUR INCOME GENERATING UNITS.(IGUS) OLD AND DECAYING INFRASTRUCTURE REQUIRING ATTENTION. IMPULSE BUYING
APPROVAL THRESHOLDS Heads of units under departments N 100,000 Vice Chancellor Principal Officers N250,000 Heads of Department N 150,000 Directors/Deans N 250,000 Less than N10M
FINANCIAL PROCESS REQUEST FROM USER TO THE HEAD OF DEPARTMENT OR TO/THROUGH THE DEAN DEPENDING ON THE AMOUNT INVOLVED. THE FINANCE OFFICER WILL VERIFY BUDGETARY ALLOCATION AND FUND AVAILABILITY BEFORE APPROVAL IS GIVEN FOR PURCHASE. WHERE THE EXPENDITURE IS ABOVE THE APPROVAL OF THE HOD, THE DEAN GIVES APPROVAL AND WHERE IT IS ABOVE THE DEAN S APPROVAL, IT IS SENT TO THE VC FOR APPROVAL WHERE THE ITEM OF EXPENDITURE IS ABOVE N1M, IT GOES THROUGH THE DEPARTMENTAL FINANCE COMMITTEE AND 3 QUOTATIONS (ALONG WITH ALL RELEVANT DOCUMENTS) ARE ATTACHED TO THE REQUEST WITH THE RECOMMENDATION OF THE COMMITTEE AND PROCESS 2 & 3 IS OBSERVED. ALL EXPENDITURE ABOVE N1M IS SENT TO THE PROCUREMENT UNIT BEFORE APPROVAL IS GIVEN FOR EXECUTION. AFTER THE JOB IS EXECUTED, THE INVOICE AND DELIVERY NOTES ARE AUDITED AND STORE NOTES ARE ATTACHED FOR GOODS PURCHASED BEFORE IT IS SENT FOR APPROVAL FOR PAYMENT TO BE MADE. NB: IT IS IMPORTANT TO NOTE THAT ANY EXPENDITURE TO BE CARRIED OUT ABOVE ONE S APPROVAL LIMIT MUST OBTAIN APPROVAL BEFORE THE EXPENDITURE IS INCURRED.
FINANCIAL PROCESS APPROVED EXPENDITURE REQUEST FOR PAYMENT SHALL BE SENT TO THE BURSAR/OR HER REPRESENTATIVE DEPENDING ON THE AMOUNT INVOLVED. SIGNED PAYMENT VOUCHERS ARE SENT TO THE INTERNAL AUDIT UNIT FOR PRE-PAYMENT AUDIT. AUDITED PAYMENT VOUCHERS WITH ATTACHMENTS ARE SENT TO THE CASH OFFICE FOR E- PAYMENT. IN THE CASE OF A PURCHASE/TOURING ADVANCE, A COMMITMENT PAPER WHICH IS IN TRIPLICATE SHALL BE SIGNED BY THE MEMBER OF STAFF BEFORE THE RELEASE OF FUND. ALL ADVANCES SHALL BE RETIRED WITHIN 30DAYS. WHEN RETIRING THE ADVANCES, THE MEMBER OF STAFF SHALL LIST OUT THE EXPENDITURE INCURRED AND ATTACH THE RELEVANT ORIGINAL RECEIPTS OF THE TRANSACTION.
WHAT HAS CHANGED? Payment platforms funding Procurement policies.
PAYMENT PLATFORMS This is one of the Federal Government financial reform initiatives aimed at ensuring accountability and transparency in financial transaction processes. It is the platform used to assess subventions by the Federal Government i.e. Personnel, Overhead and Capital subventions. Government Integrated Financial Management Information System (GIFMIS This is the operation of a unified structure of Government Bank Accounts, in a single account or a set of linked accounts for ALL Government payments and receipts The account is domiciled with the Central Bank of Nigeria and accessed through the REMITA platform. Collections are made into the account through the generation of a Remita Retrieval Reference code (RRR) on the University website. Payment vouchers are uploaded, reviewed and approved by relevant officers via the platform Treasury Single Account (TSA) This is a computerized biometric system designed to enhance the effectiveness and efficiency in the storage of personnel records and administration of monthly payroll in such a way that it will provide confidence in employee emolument cost and budgeting. All staff salaries and allowances are paid through this platform. The University is only responsible for raising variations to the payroll like deductions, implementing increments/promotion, stoppage of salary etc The IPPIS is responsible for placing anyone on the payroll, inputting allowances or pay arrears. Integrated Payroll and Personnel Information System (IPPIS)
FUNDING THE FUNDING OF THE UNIVERSITY HAS GRADUALLY DIMINISHED OVER THE YEARS. THIS IS DUE MAJORLY TO THE RISING COST AND THE DWINDLING INCOME. THIS HAS GREATLY IMPACTED ON THE UNIVERSITY S ABILITY TO FUND THE BUDGET. THESE HAS BEEN DISCUSSED IN DETAILS IN THE SLIDES ABOVE.
PROCUREMENT POLICIES (I) TO ENSURE THAT GOODS, WORKS AND SERVICES NEEDED ARE PROCURED WITH DUE ATTENTION TO ECONOMY AND EFFICIENCY. (II) TO ENSURE THAT PUBLIC FUND IS USED TO PROCURE ONLY THOSE GOODS, WORKS AND SERVICES NEEDED BY THE INSTITUTION (III) TO GIVE ALL QUALIFIED BIDDERS AN EQUAL OPPORTUNITY TO COMPETE FOR ALL PROCUREMENTS. (IV) TO ENCOURAGE DEVELOPMENT OF LOCAL CONTRACTORS AND MANUFACTURERS. (V) TO ENSURE THAT THE PROCUREMENT PROCESS IS TRANSPARENT.
CONDUCT OF PROCUREMENT A PROCUREMENT PLAN IS PRODUCED BASED ON BUDGETARY APPROPRIATIONS. PROCEEDINGS/PROCUREMENT PROCESS SHALL NOT BE INITIATED UNTIL THE FACULTY/ORGANISATION HAS ENSURED THAT FUNDS ARE AVAILABLE TO MEET THE OBLIGATIONS. A CERTIFICATE OF NO OBJECTION TO AWARD CONTRACT MUST BE OBTAINED FROM THE BUREAU IF PROCUREMENT WILL NOT BE BY OPEN COMPETITIVE BIDDING OR WHERE APPLICABLE. ALL PROCUREMENT MUST FOLLOW THE PROCUREMENT THRESHOLD STIPULATED FROM TIME TO TIME IN THE PUBLIC PROCUREMENT ACT, 2007OR RESTRICTED CASES AS PROVIDED FOR IN SECTIONS 39 -43 OF PUBLIC PROCUREMENT ACT, 2007
APPROVED THRESHOLD FOR PROCUREMENT/SELECTION METHOD PROCUREMENT METHOD Goods (N) Works (N) Non- consultant services (N) Consultant Services (N) International/National competitive bidding N300 million and above N1.5 billion and above N300 million and above Not applicable National competitive bidding N20 million and above but less than N300 million N30 million and above but less than N1.5 billion N20 million and above but less than N300 million Not applicable Request for quotation Less than N20 million Less than N30 million Less than N20 million Not applicable Shopping (Market survey) Less than N5 million Less than N5 million Less than N5 million Not applicable Single source/Direct contracting Less than N1 million Less than N1 million Less than N1 million Less than N1 million
APPROVED THRESHOLD FOR APPROVING AUTHORITY Approving Auhtority Goods (N) Works (N) Non- consultant/consultan t services (N) BPP certificate of No Objection to award N300 million and above N1.5 billion and above N300 million and above Ministerial Tenders Board N20 million and N30 million and above but less than N1.5 billion N20 million and above but less than N300 million above but less than N300 million Parastatal Tenders Board N10 million and N20 million and above but less than N500 million N10 million and above but less than N100 million above but less than N100 million Accounting Officer: Permanent Secretary Less than N20 million Less than N30 million Less than N20 million Accounting Officer: Director General/CEO Less than N10 million Less than N20 million Less than N10 million
DOCUMENTS REQUIRED FOR PROCUREMENT LIMITED LIABILITY COMPANY BUSINESS NAME/ENTERPRISES Certificate of Incorporation Certificate of registration of business Tax Clearance Certificate Personal Income Tax Pencom Certificate Industrial Training Fund certificate (ITF) National Social Insurance Trust fund (NSITF) Bureau of Public Procurement (BPP)
