Education Foundation of UNNC Procedure for financial management

 Chapter I: General Principles

Article 1: These Measures are formulated to standardise the financial management of UNNC Education Foundation (referred to hereinafter as EFUNNC), ensure its legal, compliant, and effective financial operation, and enhance fund usage efficiency. These Measures are formulated in accordance with the Charter of UNNC Foundation and relevant laws, regulations, and regulations, considering the specific circumstances of UNNC Foundation.

Article 2: EFUNNC is a non-public fundraising foundation approved by the Zhejiang Education Department and registered with Zhejiang Civil Affairs Department. As an independent legal entity, UNNC Foundation strictly adheres to the Accounting System for Private Non-profit Organizations, maintains independent accounting practices, and is subject to supervision and guidance from Departments of Education, Civil Affairs, Finance, Tax and other relevant authorities. Ensure that accounting information is legal, true, accurate and complete.

Article 3: EFUNNC organises and accepts donations from various sectors of society in accordance with the law. All received incomes are recorded in UNNC Foundation's accounts and utilized within the scope of business stipulated in the donation agreement or UNNC Foundation's Charter.

Article 4 EFUNNC shall maintain its accounts in CNY. In cases where donations are received in foreign currencies, it shall be recorded in the accounts using the actual exchange rate at the time of receipt, converted into the equivalent amount in CNY.  

Chapter II. Financial Management System

Article 5 According to the organisational structure and governance system, the foundation board, serves as the supreme authority of UNNC Foundation, regularly reviews financial reports, annual budgets, final accounts, and makes decisions on significant financial matters. 

Article 6 The EFUNNC finance team is entrusted with the responsibility of financial management.

Article 7 This finance team contains appropriately qualified staff to meet the needs of the work and accountants must not concurrently serve as cashiers. Upon resignation of a member of staff, handovers with the successive post holder must take place. 

Article 8 During the period when EFUNNC board is not in session, all business activities shall be authorised to be approved and implemented by the Chairman or the Secretary-General in accordance with the foundation charter. When EFUNNC carries out annual review, succession, resignation of legal representatives and liquidation process, it must be subject to financial audit in accordance with the relevant provisions.

Chapter III: Duties of the Financial Management Team

Article 9 The financial team is required to adhere to the Accounting Law of the People's Republic of China and strictly implement the Accounting System for Private Non-profit Organizations, the Standard for Basic Accounting Work, and the Measures for the Management of Accounting Files, as well as other relevant national financial laws and regulations and financial management systems.

Article 10 Financial team duties

I. Responsible for accounting and daily financial management of donated funds;

II. Oversee the financial accounting, valuation, and bookkeeping of donated assets.

III. Handle the accounting tasks related to fund operations.

IV. Supervise and inspect the implementation of fund budgets, analyse and assess the effectiveness of fund usage.

V. Compile and analyse financial information related to projects, providing financial analysis for leadership decision-making.

VI. Collaborate with relevant departments for inspections, audits, and financial reporting.

VII. Strictly follow regulations for online application of electronic receipt, and manage project implementation, releasing, recording effectively.

VIII. Adhere strictly to the "Accounting Records Management Policy," ensuring proper custody of accounting documents and other records.

IX. Regularly submit financial reports to the Foundation Board, Secretariat and Supervisor.

Article 11 Duties of Accountant

I. Responsible for daily accounting work and bookkeeping.

II. Ensure accurate preparation of final accounts for all funds and various types of financial statements.

III. Verify fixed assets and clear current accounts as required.

IV. Responsible for printing, organising, and binding accounting books, ensuring proper assembly and custody of accounting files.

Article 12 Duties of Cashier

I. Responsible for managing bank deposits.

II. Maintains inventory of various blank bills and seals.

VII. Strictly follow regulations for online application of electronic receipt, and manage project implementation, releasing, recording effectively.

IV. Handle various basic financial transactions, including but not limited to reimbursements and other daily financial matters.

Article 13 When accountant or cashier has any personnel change, they must complete the handover procedures with their successors.

Chapter IV. Elements of Financial Management

Article 14 EFUNNC’s Financial management includes: budget management, income management, expenditure management, cash and deposit management, asset management financial supervision and etc.

Article 15: Budget Management

I. Annually, UNNC Foundation shall increase fundraising efforts while preparing the annual financial budget based on development goals and plans. Budgeting at the Foundation follows the principle of "keeping expenditures within revenue limits, balancing income and expenditure," emphasising comprehensiveness and diligence.

II. The finance team shall furnish the Secretariat with detailed information regarding the previous year's budget implementation and actual balances. The secretariat, in collaboration with UNNC’s development requirements and the Foundation's annual business development goals, adjusts the budget for income and expenditures based on factors influencing annual financial inflows and outflows. The finalised budget is then prepared for approval and implementation by UNNC Foundation Board.

III. The finance team monitors project implementation through financial systems, regularly analysing the financial reports. If adjustments to project budgets (i.e., expenditures) are necessary during implementation, the PI should submit application to the Foundation's Secretariat. Adjustments are reviewed and approved by the Secretary-General, Chairman of the Board of Directors, or Council, ensuring compliance with budget limits.

Article 16 Revenue Management

I. Foundation Revenue:

• • Donation Income
  •  Government grants;
  • Investment Interest;
  • Other Revenue.

II. EFUNNC must adhere strictly to laws and regulations, organising income in accordance with relevant state policies and regulations. Revenue must align with the Charter’s purposes and the scope of public welfare activities. The use of funds and issuance of invoices must comply with laws and regulations.

III. EFUNNC categorises revenue into restricted and unrestricted funds based on their intended purposes. All revenue is deposited into the Foundation's designated accounts and managed through separate project accounting overseen by the Finance Department. Funds must be utilized strictly within the registered business scope and in compliance with regulations set by the People's Bank of China. The Foundation's assets and revenue are legally protected against unauthorised use, sharing, or misappropriation by any entity or individual.

IV. Donations in kind are recorded at fair market value, determined either by comparison with similar assets or through appraisal by a professional appraisal company, with appropriate documentation procedures followed.

V. UNNC Foundation operates its funds according to its annual work plan and seeks legal investment opportunities to generate income. All investment returns are fully allocated to the Foundation's accounts and accounted for in accordance with regulations, ensuring transparency and compliance with legal requirements.

Article 17 Expenditure Management

I. Expenditures should adhere to the donor's wishes as agreed upon in the donation agreement. Both parties involved must sign for it to be effective. Any changes in usage require written agreement from the donor.

II. Expenditures are subject to a strict financial review system. The Finance team should review each expenditure to ensure its authenticity, legality, and compliance. Any falsified or altered reimbursement vouchers, fraudulent expenditures, etc., are strictly prohibited.

II. The expenditures are categorised by function into the expenses of operating activities, administrative expenses, fund-raising expenses and other expenses.

IV. Expenditures for charity activities, as stipulated in the Charter, shall not be less than 8% of the fund balance from the previous year. Expenditures must meet the requirements of public welfare development, adhere to the principle of practicing economy and living within one's means, and strictly comply with all financial systems and disciplines.

V. Expenditures, specifically the charity project cost, refers to expenses incurred to achieve the objectives, implement projects, or provide services. These expenses are classified into restricted and unrestricted categories based on their designated purposes and funding sources.

1. Reserved funding: shall be implemented in accordance with the donation agreement. The reserved funding project shall be executed by the Foundation Office or entrusted to the university according to the scope, amount and payment time of the funds specified in the agreement. and accept the supervision of government.

2. The unreserved funding:  based on the needs of the development of the university, and the funded project is entrusted to the university  for implementation after the approval of the Foundation board, and the foundation office is responsible for the follow-up inspection and performance evaluation of the project.

VI. Admin expenses, staff salaries, and welfare fees should not exceed 10% of the total annual expenditures.

VII. Administrative expenses and fundraising expenses are subject to quota management and are strictly funded in accordance with the annual expenditure administrative budget approved by the Foundation Board. Business is handled within the approved administrative budget quota.

VIII. Criteria for expenditure and approval process

1、Rrequirements for requesting an advance typically include:

（1）Users needing funds without an advance invoice must complete the advance request form on the financial system.

（2）The reasons for the advance should be briefly explained.

（3）After use, all advances must be promptly reported and cancelled with the Foundation's Finance Team.

2、Reimbursement of daily office expenses adheres to national regulations and standards, emphasizing economy and waste reduction.

（1）Reimbursement bills must be legitimate invoices supervised by state tax or financial authorities.

（2）Original bills should be fully completed and stamped with the financial seal or invoice seal of the issuing organisation. Details such as UNNC Foundation's name, bill date, content, and goods purchased with corresponding amounts must be accurately recorded. For invoices listing multiple items (e.g., office supplies, stationery), the total must match the invoice amount.

（3）Any errors or alterations on invoices must be corrected and reissued by the issuing organization, with corrections stamped accordingly. Incorrect invoices or those lacking necessary details will not be reimbursed.

3、 Project funds designated by donation agreements must strictly adhere to designated purposes. Operating expenditures directly linked to public welfare projects require approval via online approval system.

4、 These guidelines ensure proper financial management, transparency, and compliance with regulatory requirements within the Foundation's operations.

Article 18 Asset Management

1. Assets are economic resources in possession or use that can be measured in monetary terms, including assets, claims and other rights. The assets of the Foundation include current assets, external investments, fixed assets and intangible assets.
2. UNNC Foundation shall enhance asset management through equipping personnel, establishing a regular inventory system, keeping a register of non-cash assets (including purchased or gifted), establishing a detailed account of fixed assets, and carrying out strict management.
3. UNNC Foundation conducts periodic assessments, typically at the end of each year, to determine if assets such as short-term investments, receivables, and long-term investments have been impaired. If impairment is identified, UNNC Foundation makes a provision for impairment, recognising an impairment loss which is charged to current expenses.
4. Fixed asset management shall be implemented in accordance with the "University of  Nottingham Ningbo China Education Foundation Fixed Asset Management Policy"
5. Intangible assets refer to non-dispositional long-term assets without physical form that the foundation holds for business, leases to others or for management purposes, including patents, non-patent technologies, trademarks, copyrights, land use rights, etc. Intangible assets should be amortized evenly in installments over their estimated useful life starting from the month of acquisition. If the contract does not stipulate the beneficial life and the law does not stipulate the effective life, the amortization period should not exceed 10 years.

Article 19 Cash Management

I. Cash management must strictly implement the Provisional Regulations on Cash Management promulgated by the State Council; cash must not be stored in excess of the limit, must not be used against the treasury, must not be borrowed without authorisation, must not be misappropriated, must not be collected and spent, must not be fabricated for any purpose or used to obtain cash on behalf of other units and individuals, and must not be retained in cash outside the accounts.

II. UNNC Foundation establishes cash journals and meticulously records cash receipts and disbursements on a transaction-by-transaction basis. This practice ensures daily and monthly reconciliation of accounts, maintaining accuracy and alignment with financial records. In cases where discrepancies arise, prompt reporting is mandatory. The causes of discrepancies must be identified, corrected, and appropriate personnel held accountable for any errors. This process promotes transparency and accountability in financial management within the Foundation.

III. Personnel in non-cash positions are required to conduct regular and ad-hoc cash inventories to verify that the balance in the cash book matches the actual physical inventory of cash on hand. Any discrepancies discovered during these inventories must be promptly identified and reported to leadership. This practice ensures that cash management remains accurate and discrepancies are swiftly addressed to maintain financial integrity.

Article 20 Management of bank deposits

I. UNNC Foundation rigorously adheres to the Measures for Payment and Settlement and other relevant state regulations, enhancing the management of bank accounts. All activities including account openings, deposits, withdrawals, and settlements are conducted strictly in accordance with regulatory requirements.

II. The Foundation strictly implements regulations concerning the completion, transmission, and retention of bank settlement vouchers, ensuring robust management and control at every stage.

III. Strictly follow the discipline of bank settlement, and forbid issuing bills or forward checks without fund guarantee to take bank credit; forbid issuing, obtaining and transferring bills without real transaction and debt obligation to take other funds; forbid unreasonably refusing to make payment, and arbitrarily occupying other people's funds; and forbid violating the regulations on the opening and using of bank accounts.

Chapter V: Financial Report and Analysis

Article 21 The financial report serves as a comprehensive document that portrays the financial status, business activities, and cash flow. It encompasses accounting statements such as the balance sheet, statement of business activities, and cash flow statement, accompanied by notes to the accounting statements and other pertinent financial disclosures.

Article 22 In accordance with the "Accounting System for Private Non-profit Organizations," UNNC Foundation is obligated to provide accurate and complete financial and accounting reports to external stakeholders. These reports are regularly submitted to relevant regulatory authorities and oversight bodies.

Article 23 The audit report issued for public dissemination must be sequentially paginated, securely bound, and stamped with the official seal to ensure authenticity and reliability.

Article 24 Financial and accounting information related to individual projects must be compiled by the Finance Team in accordance with established accounting practices. Before external disclosure, these reports are subject to review and approval by the Secretary General and Chairman.

Article 25 Financial analysis focuses on key aspects such as fund utilization, expenses, and management of assets and materials. The Finance Team collaborates with project management to establish scientifically sound financial analysis metrics. Analysis results are promptly communicated to the Secretariat and the Foundation Board to facilitate informed decision-making based on reliable data and insights.

Chapter VI: Financial Supervision

Article 26 Revenue and expenditures from both restricted and unrestricted donations are subject to supervision by the Foundation's Supervisors. They ensure strict adherence to the terms stipulated in the donation agreements and declarations for each type of fund. In cases where violations of these agreements occur during implementation, Supervisors are empowered to request the Finance Team to cease payments for the affected projects. They are also mandated to report such breaches to the donors and the Board for resolution.

Article 27 UNNC Foundation retains the authority to monitor the utilisation of funds transferred to schools and track their outcomes. According to agreements in place, periodic reports on fund utilisation are submitted to the donors.

Article 28 UNNC Foundation operates under the supervision of competent departments including civil affairs, education, tax, and auditing.

Article 29 UNNC Foundation undergoes annual audits conducted by accounting firms. The audit results are then published in designated media platforms specified by regulatory authorities for public scrutiny and oversight.

Chapter VII: Management of Accounting Files

Article 30 Accounting files serve as crucial historical records and evidence that document and reflect the economic transactions. These files encompass accounting vouchers, accounting books, financial reports, and other pertinent accounting information.

Article 31 Accounting files are managed in accordance with the "Measures for the Administration of Accounting Files" and are overseen by designated personnel within the Finance Team.

Article 32 Access to accounting records requires approval by the financial supervisor under special circumstances. These records may be made available for inspection, copying, or other specified purposes, subject to appropriate registration procedures.

Article 33 The destruction of accounting records must adhere to prescribed procedures and receive formal approval. Original debt certificates and any unresolved matters are not destroyed but segregated and maintained separately until resolved.

Chapter VIII: Supplementary Provisions

Article 34: UNNC Foundation Board is responsible for clarifying and revising these Measures.

Education Foundation of the University of Nottingham Ningbo China