FMPM 430 Borrowings

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Intent

This policy sets out the requirements relating to the identification of the need for, the approval of, and the monitoring of monetary borrowings.

Scope

Function

Responsibility of

Identification of the need for borrowing

Director, Financial and Business Services

Approval of all borrowing programs

Council

Obtain necessary Governmental clearances

Director, Financial and Business Services

Approval of terms and conditions of borrowing

Finance Committee

Monitor cash flow requirements

Director, Financial and Business Services

Maintain Register of Treasurer’s Approvals

Director, Financial and Business Services

Definitions

Borrowing

Policy

  • No one shall seek to negotiate any borrowing arrangements on behalf of the University without the prior approval of Council.

  • Borrowing arrangements may include:

    • advances by way of loan or overdraft from the Treasurer, State Government or a financial institution (including banks); and

    • advances by way of loan from any other person or entity.

  • The borrowing must be in Australian money and undertaken in Australia.

  • Prior to entering into any borrowing arrangements, the necessary approvals of the Treasurer authorising the University to enter into such negotiations must be obtained. To obtain that sanction the University must submit such information as the Treasurer may require.

  • Prior to entering into or changing existing borrowing arrangements, the arrangements, including the security, rate of interest, and other terms and conditions, must be approved by the Finance Committee and be in accordance with the requirements of the related legislation.

  • The Director, Financial and Business Services must monitor the University's actual and projected cash flow and advise the Finance Committee on optimum debt levels.

  • The Director, Financial and Business Services, must maintain a register containing the Treasurer’s approvals.

Related documents, legislation or JCU Statutes

Statutory Bodies Financial Arrangements Act 1982 (Sec 3,9,21,33,34)

Statutory Bodies Financial Arrangements Amendment Regulation (No. 2) 2003

Statutory Bodies Financial Arrangements Regulation 2007

For enquiries in relation to this FMPM Policy please contact farp.finance@jcu.edu.au

Administration

Approval Details

Policy Sponsor

Deputy Vice Chancellor, Services and Resources

Approval Authority

Finance Committee

Date for next review

04/2016

Revision History

Version

Approval date

Implementation date

Details

Author

15-01

09/09/2015

10/09/2015

Policy Sponsor and Approval Authority updated to reflect the approved Policy and Delegations Framework

Quality Standards and Policy Unit

11-01

14/04/2011

14/04/2011

Finance Committee (02/11)


01-01

12/2001

12/2001



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