Operational Framework for Contracts,
Entities and New Initiatives
5.1 Contracts and Agreements
5.1.1 Activities governed by contract or agreement will be
entered into by authorised officers of the
University in accordance
with the Policy on Delegations of Authority to Enter into
Contracts
5.1.2 Management of risks related to activities governed
by contract or agreement will occur in accordance with the
principles and procedures in this policy and the Policy on
Delegations of Authority to Enter into Contracts.
5.2 University Involvement in
Entities
5.2.1 For the purpose of this policy, entity
means any entity
(including an associated company as defined in
the Accounting
Standards issued by the Australian Accounting
Standards Board),
partnership or joint venture in which Flinders University
has an investment of any size, whether cash or in kind.
5.2.2 The companies partnerships and other
entities in which
the University is involved, and the nature of
that involvement,
vary widely. Many, including national bodies with
representation
across the university sector and centres funded
through government
grants, represent minimal risk. A small number of
commercial
ventures represent potentially more significant risk.
5.2.3 Establishment and monitoring of University
involvement
in entities will occur in accordance with the
principles and
procedures in this policy.
5.2.4 The University will maintain a database ('Entities
Register') to record details of new and existing entities
as defined above, including a risk assessment in each case,
in a form prescribed by the Vice-President (Strategic Finance
and Resources). The Entities Register excludes funds investment
in Australian Stock Exchange listed companies, which are approved
in accordance with the University's Policy on Investments.
5.2.5 A re-assessment of risk from entities in
the Entities
Register will be undertaken annually, or as the
need arises,
in accordance with University procedures, noting that where
an external audit of the entity is conducted, the
University
will receive a copy of the entity's financial
statements and
the auditor's certification.
5.2.6 The University will seek to obtain an
auditor's report
and audit management letter from the relevant
State, Territory
or Commonwealth Auditor-General or external auditor where
Council deems it appropriate, in light of consideration of
the nature of the entity, its significance and
the associated
risks.[1]
5.3 Planning Significant New Commercial
Initiatives
To ensure that Flinders University's interests
are protected
and risk exposures and their management are
properly addressed
in the planning phase, proposals for establishment of, or
participation in, new initiatives will be
prepared and submitted
with reference to the Procedures for Planning Significant
New Commercial Initiatives at Schedule
A.
[1]In compliance with Protocol 11 of the National Governance
Protocols set out at http://www.dest.gov.au/highered/governance/nat
gov prot.htm which Higher Education Providers eligible for
grants under the Commonwealth Grant Scheme need to satisfy
under section 33-15 (1)(a) of the Higher Education Support
Act 2003.
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