Policy Liability Procedures - FMPM 400-499 FMPM 431 Borrowing
FMPM 431 Borrowing
- Aboriginals and Torres Strait Islanders in Marine Science
- Courses
- Future Students
- Current Students
- Research and Teaching
- Partners and Community
- About JCU
- Reputation and Experience
- Celebrating 50 Years
- Academy
- Anthropological Laboratory for Tropical Audiovisual Research (ALTAR)
- Anton Breinl Research Centre
- Agriculture Technology and Adoption Centre (AgTAC)
- Living on Campus
- How to apply
- Advanced Analytical Centre
- Alumni
- AMHHEC
- JCU Aquaculture Solutions
- AusAsian Mental Health Research Group
- ARCSTA
- Area 61
- Association of Australian University Secretaries
- Australian Lions Stinger Research
- Australian Tropical Herbarium
- Australian Quantum & Classical Transport Physics Group
- Boating and Diving
- JCU-CSIRO Partnership
- Employability Edge
- Career Ready Plan
- Careers at JCU
- Careers and Employability
- Chancellery
- Centre for Tropical Bioinformatics and Molecular Biology
- CITBA
- CMT
- CASE
- College of Business, Law and Governance
- College of Healthcare Sciences
- College of Medicine and Dentistry
- College of Science and Engineering
- CPHMVS
- Centre for Disaster Solutions
- CSTFA
- Cyber Security Hub
- Cyclone Testing Station
- The Centre for Disaster Studies
- Daintree Rainforest Observatory
- Discover Nature at JCU
- Research Division
- Services and Resources Division
- Education Division
- Elite Athletes
- eResearch
- Environmental Research Complex [ERC]
- Estate
- Fletcherview
- Foundation for Australian Literary Studies
- Gender Equity Action and Research
- General Practice and Rural Medicine
- JC 'U' Orientation
- Give to JCU
- Governance
- Information for JCU Cairns Graduates
- Art of Academic Writing
- Art of Academic Editing
- Graduate Research School
- Graduation
- Indigenous Education and Research Centre
- Indigenous Engagement
- Indigenous Legal Needs Project
- Inherent Requirements
- IsoTropics Geochemistry Lab
- IT Services
- International Schools
- International Students
- Research and Innovation Services
- JCU Eduquarium
- JCU Events
- JCU Global Experience
- JCU Ideas Lab
- JCU Job Ready
- JCU Motorsports
- JCU Prizes
- JCU Sport
- JCU Turtle Health Research
- Language and Culture Research Centre
- CEE
- LearnJCU
- Library
- Mabo Decision: 30 years on
- MARF
- Marine Geophysics Laboratory
- New students
- Off-Campus Students
- Office of the Vice Chancellor and President
- Virtual Open Day
- Orpheus
- Outstanding Alumni
- Parents and Partners
- Pathways to university
- Planning for your future
- Placements
-
Policy
- Academic Governance
- Academic Management
- Engagement
-
Corporate Governance
- Academic Freedom and Freedom of Speech Policy
- Affiliation of a Residential College Policy
- Bullying, Discrimination, Harassment, and Sexual Misconduct Policy
- Business Continuity Policy
- Child Safety Policy
- Code of Conduct – University Council
- Compliance Policy
- Conduct of Council Elections Policy
- Conflicts of Interests Policy – University Council and its Committees
- Controlled and Non-Controlled Entities Policy
- Critical Incident Policy
- Data Governance Policy
- Distinguished Professor Policy
- Domestic and Family Violence Policy
- Emeritus Professor Policy
- Foreign Interference Policy
- General Practice Training Governance Policy
- Incident Management Policy
- Information Privacy Policy
- Legal Services Claims and Litigation Assistance Policy
- Organisational Structure Policy
- Records Management Policy
- Right to Information Policy
- Risk Management Policy
- Social Media Policy
- Staff Code of Conduct
- University Archives - Access
- University Seal Policy
- Visiting Speaker and Event Policy
- Policy Development and Review Policy
- Quality Enhancement Framework
- Reviews of Organisational Units and Thematic Areas - Policy and Procedures
-
Estate and Facility Management
- Advertising on Campus
- Alcohol Consumption on University Property
- Approval of Works to University Buildings and Site Infrastructure
- Authorised Use of University Facilities, Premises and/or Grounds for Non-core Purposes
- Environmental Policy
- High Voltage Access Policy
- Memorial Plaques
- Noise on University Sites
- Pets on Campus
- Real Estate Dealings Policy
- Security Policy
- Space Allocation and Management Policy
- Timetable and Class Registration Policy
- Tree Protection
- Vehicle Fleet Policy
- Weapons Policy
- Adaptive Workplace Policy
-
Financial Management
- Appendices
-
Assets (FMPM 200 - FMPM 399)
- FMPM 200 Overview - Assets & Cash Management
- FMPM 210 Cash
- FMPM 220 Policy - Bank Accounts
- FMPM 230 - Petty Cash Advances
- FMPM 300 Investments
- FMPM 320 Plant and Equipment
- Financial FMPM 322 - Acquisitions of Plant and Equipment
- FMPM 260 Other Advances
- FMPM 330 Non-Capital Assets
- FMPM 280 Official Stores
- FMPM 290 Prepayments
- FMPM 323 - Disposal of Property, Plant and Equipment Procedure
- FMPM 324 Stocktake
- FMPM 350 Intangible Assets
- FMPM 270-2 Accounts Receivable - Student Debtors - Penalties
- FMPM 240 Travel Advances (Students)
- FMPM 330 Non-Capital Assets
- FMPM 270-1 Accounts Receivable
- FMPM 250 - Policy Salary Advances
- Equity (FMPM 500 - FMPM 599)
- Expenses (FMPM 700 - FMPM799)
- Financial Management and Control (FMPM 800 - FMPM 899)
- Further Applications (FMPM 900 - FMPM 999)
- Introduction (FMPM 100 - FMPM 199)
- Liabilities (FMPM 400 - FMPM 499)
- Revenue (FMPM 600 - FMPM 699)
-
Human Resources
- Awards for Excellence Policy
- Bullying, Discrimination, Harassment, and Sexual Misconduct Policy
- Community and Indigenous Language Allowance
- Competency Pay for Tradespersons Policy
- Conflict of Interest Policy
- Early Retirement Policy
- Equal Employment Opportunity
- Honorary Appointments Policy
- Human Resources Policy Glossary
- Market Loading Policy
- Overpayment of Wages Policy
- Performance, Development and Recognition Policy
- Recruitment, Selection and Appointment Policy
- Relocation Assistance Policy
- Remote Working Policy
- Salary Packaging Program Policy
- Special Studies Program Policy
- Supported Wage System (SWS) Policy
- Mandatory Training Policy
- Digital Infrastructure
-
International and Admissions
- Attendance Monitoring Policy - English Language and Foundation Programs
- Enrolment Requirements for International Student Visa-Holders Policy
- Management of Off-Campus Operations, Ventures and Partnerships
- Transfer of International Student Visa Holders to Other Educational Institutions
- US Federal Student Aid-SAP & Return to Title IV Policy
- Admissions Policy
-
Learning and Teaching
- Blended Learning Policy
- Charter of Responsibilities for Academic Quality and Governance
- Coursework Academic Integrity Policy
- English Language and Numeracy Policy
- Graduate Attributes
- Graduate Certificate of Education (Academic Practice) Internal Sponsorship Policy
- Learning Teaching and Assessment Policy
- Policy Glossary
- Review of a Student’s Suitability to Continue a Course Involving Placement
- Student Digital Experience Policy
- Student Evaluation of Subjects and Teaching Policy
- Student Retention Policy
- Research Education
- Research Management
-
Student Matters
- Academic Progression Policy
- Administration of Commonwealth Scholarships Policy
- Attendance Monitoring Policy - English Language and Foundation Programs
- Award Finalisation and Graduation Policy
- Bullying, Discrimination, Harassment, and Sexual Misconduct Policy
- Copyright Policy and Procedure
- Coursework Enrolment Policy
- Coursework Scholarships, Grants and Prizes Policy
- Library Use Policy
- Student Code of Conduct
- Student Complaints Policy
- Student Disability Policy
- Student Fee Payments and Refunds Policy
- Student Review and Appeals Policy (effective from 01/01/2023)
- Student Special Circumstances Policy
- Transfer of International Student Visa Holders to Other Educational Institutions
- Student Results Policy
- Work Health and Safety
- Policy search
- PAHL
- Publications
- Professional Experience Placement
- Queensland Research Centre for Peripheral Vascular Disease
- Rapid Assessment Unit
- RDIM
- Researcher Development Portal
- Safety and Wellbeing
- Scholarships
- Contextual Science for Tropical Coastal Ecosystems
- Staff
- State of the Tropics
- Strategic Procurement
- Student Equity and Wellbeing
- Student profiles
- SWIRLnet
- TARL
- TESS
- TREAD
- TropEco for Staff and Students
- TQ Maths Hub
- TUDLab
- Unicare Centre and Unicampus Kids
- UAV
- VAVS Home
- Work Health and Safety
- WHOCC for Vector-borne & NTDs
- Media
- Copyright and Terms of Use
- Australian Institute of Tropical Health & Medicine
- Clinical Psychedelic Research Lab
Intent
This procedure sets out the requirements for the approval, establishment, drawdown, repayment and reporting of monetary borrowings.
Definitions
Establishment
Each year, the Chief Financial Officer, determines the need for borrowing in the context of the Capital and Infrastructure Planning process. The indicative borrowing requirements are included in the triennium budget and are approved as part of the budget approval process.
When the need to borrow for a specific project within the approved budget arises, the Chief Financial Officer makes application to the Finance Committee for approval to enter into negotiations for borrowing in respect of the specific project.
Finance Committee:
reviews the justification for and requirement to borrow;
identifies a maximum borrowing limit; and
recommends the borrowing to Council.
Upon approval by Council, the Chief Financial Officer obtains the sanction of the Queensland Treasurer to enter into negotiations for borrowing.
Once the borrowings have been approved by QTC, the loan agreement document should be forwarded to the Commercial Services Office for review. The agreement should then be treated as a standard contract and signed in accordance with section 4.1 of the Delegations Policy.
In April each year, the University, through the Queensland Office of Higher Education makes application to the Queensland Treasurer for approval to borrow under the State Borrowing Program. Whilst the application requires indicative figures for the current and three (3) future years, Queensland Treasury provide the flexibility to renegotiate both current and future year requirements. For Queensland Treasury purposes, the year commences 1 July and ends 30 June.
It is the Queensland Treasurer’s responsibility to sanction the maximum long term borrowing any Statutory Body may negotiate. The sanctioned amount becomes that Body’s Approved Borrowing Program. Any shortfall between the amount sanctioned for a year and the amount borrowed by the body during that year can be "rolled over" to the following year, with the Queensland Treasurer’s approval.
After approval by the Queensland Treasurer of the University's maximum borrowing program for the financial year, the University must provide evidence to the Queensland Office of Higher Education prior to the drawing down of any funds allocated to the University, that:
projects for which the borrowings have been sought have been the subject of appropriate economic evaluation; and
the University has the financial capacity to service its total borrowings.
Established Facilities
Borrowing facilities have been established with:
the Queensland Treasury Corporation (QTC) in accordance with Finance Committee Directive 430 - Borrowing. These facilities include a Long Term Borrowing facility within the QTC Pool Participation and an Overdraft facility of $3 million within the QTC Temporary Funding Facility; and
the Queensland State Government under the Smart State Facility which provides interest free loans on favourable terms.
Long Term Borrowing Facility
Under the long term facility, monies are borrowed for specific purposes, identifiable within the Capital and Infrastructure Plan.
The maximum Long Term Borrowing amount the University may borrow in any financial year is limited to the lesser of:
the maximum amount that has been approved by Council for that financial year; or
the maximum amount approved by the Queensland Treasurer under the Approved Borrowing Program.
Advances / Drawdowns
Finance Committee has resolved that all drawings under the QTC Long Term Borrowing Facility be approved by two (2) signatories. Current signatories are:
Vice-Chancellor;
Executive Director, Finance and Resource Planning;
Provost; or
Chief Financial Officer.
Periodic Debt Service Payment
For the initial and subsequent drawdowns, QTC calculates the Periodic Debt Service Payment, to be paid by the University.
The Periodic Debt Service Payment is the quarterly contribution estimated by QTC to amortise all drawdowns and interest charges over the estimated term of the loan. The Periodic Debt Service Payments are subject to annual review.
Early Discharge of Borrowings
The University may repay the whole or any part of the amount outstanding under the QTC Long Term Borrowing facility at any time earlier than the expiration of the estimated term, subject to payment of any additional costs incurred by QTC and giving the required period of notice.
Fees and Charges
QTC charges an administration fee in accordance with its fee scale as set from time to time. The administration fee is charged quarterly on the daily balances during the quarter.
Any costs relating to the University's participation with QTC including legal and stamp duty costs, shall be borne by the University.
The Treasury Legislation Amendment Act enables the State to impose a dividend on QTC's liability management operations and allows QTC to recover that dividend from its borrowers. The Act also provides that the Queensland Treasurer may charge a fee for guarantees given in respect of financial arrangements undertaken with institutions other than QTC. The effect is that unless borrowing is undertaken on a non-guaranteed, non-recourse basis to the State, there will be either a guarantee fee or a performance dividend payable by the University in respect of any borrowing.
Performance dividends are charged, on Long Term Borrowing, annually in arrears with the University's debt pool account being debited in the next financial year. The University may deposit funds to cover these dividends as an alternative to the dividend being capitalised as part of the debt pool.
Disclosure
The balance of the Long Term Borrowing facility is recorded in the books and records of the University at book value. Each quarter QTC reports to the University the book value and the market value of the debt of the QTC Long Term Borrowing facility including any Periodic Debt Service adjustments. The difference between the book value and the market value of the debt represents the penalty/credit to the University if the University wished to payout the loan on that quarter end date.
The Queensland Office of Higher Education requires details of the total drawdowns and principal repayments in respect of the QTC Long Term Borrowing Facility on a quarterly basis.
Overdraft Facility
This facility involves QTC making available to the University, until terminated by either party, short term funding up to the facility limit, on a revolving basis, on specific terms and conditions.
Facility Limit
The overdraft facility limit available to the University (currently $3.0 million) is the lesser of:
the maximum amount that has been approved by Council; or
the maximum amount approved by the Queensland Treasurer.
The facility requires no further approval during the duration of its operation. Overdraft facilities do not form part of a Statutory Bodies' Approved Borrowing Program.
Drawdowns and Repayments
Finance Committee has resolved that:
each drawdown of the overdraft facility be authorised by two (2) signatories. Current signatories are:
Vice-Chancellor;
Executive Director, Finance and Resource Planning;
Provost; or
Chief Financial Officer.
and the repayment of overdraft facility drawdowns be a first charge on temporary surplus funds.
As the facility is revolving in nature there is no limit on the frequency or number of drawdowns and repayments which the University may make during the facility term.
Termination of Facility
The University may terminate the facility on not less than one month's written notice expiring at the end of any calendar month.
QTC may terminate the facility on not less than six (6) months written notice expiring at the end of any calendar month.
Fees and Charges
QTC charges a facility fee in accordance with its scale as set from time to time.
Any costs relating to the University's participation with QTC including legal and stamp duty costs, shall be borne by the University.
Disclosure
The balance of the Overdraft facility shall be recorded in the books and records of the University at book value.
The Queensland Office of Higher Education requires details of the total drawdowns in respect of the Overdraft Facility on a quarterly basis.
Interest Free Loans
Loan agreements have been negotiated with the Queensland Government whereby monies are borrowed for specific projects. These loans have a ten (10) year moratorium on repayments and one third of the loan is forgiven subject to conditions in the contract being satisfied.
Drawdowns, Repayments, Prepayments
All terms and conditions are contained in individual loan agreements. This includes the amount and timing of drawdowns, repayment schedule, and conditions relating to early repayment of loan.
Fees and Charges
There will be no interest expense or fees payable on these loans.
Disclosure
Under Australian Accounting Standards, the University is required to record the loan balance in the statement of financial position at its net present value.
For enquiries in relation to this Finance Procedure please contact farp.finance@jcu.edu.au
Administration
Approval Details
Policy Domain | Financial Management |
Policy Sponsor | Vice Chancellor |
Approval Authority | Vice Chancellor |
Date for next review | 01/06/2018 |
Revision History
Version | Approval date | Implementation date | Details | Author |
18-01 | 30/04/2018 | Changes made to reflect headline restructure 30/04/2018. | Quality, Standards and Policy | |
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 |
13-01 | 30/05/2013 | 15/08/2013 | Finance Committee (05/2013) | |
01-01 | 12/2001 | 12/2001 |