FINANCE HANDBOOK UKZN INQUBATE - REFERENCE BOOK FOR RESEARCH GRANTS AND CONTRACTS ADMINISTRATORS & BUDGETHOLDERS
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UKZN InQubate
FINANCE HANDBOOK
REFERENCE BOOK FOR RESEARCH
GRANTS AND CONTRACTS
ADMINISTRATORS
&
BUDGETHOLDERS
TABLE OF CONTENTS
1. Introduction - UKZN InQubate (UKZN-IQ)
2. Research Finance administration
3. Financial Regulations
4. Procurement – Finance i-enabler
5. Creditors – processing of supplier payments
6. Reimbursement of expenses
7. Asstes
8. Contracts Management
9. HR appointment forms
10. UKZN Fraud Policy and Response Plan
11. Insurance
This booklet has been carefully prepared for both administrators and financial officers handling research grants and contract s. It
takes into account all the processes involved in the administration and management of research. All staff involved in Research
financial administration within the University are required to acquaint themselves with this document and it should be read in
conjunction with UKZN Financial Regulations and other relevant policies and procedures.
21. INTRODUCTION
UKZN InQubate (UKZN-IQ) is a unit with the research portfolio responsible for the administration and management
of all foreign research grants and contracts, as well as local grants and contracts over R 1million.
UKZN-IQ is a self-funded unit generating its revenue mainly from:
Projects management fees
Share of University overhead recoveries
Income from commercialization of IP
Interest on income
Consultancy fees
Services offered by UKZN-IQ
1.1 Projects Management
The projects managed by UKZN-IQ include:
Consultancy projects sourced through tendering and referrals
Research projects sourced by PIs and referred to the unit as per UKZN approved processes. That is,
projects of R 1 million and above or those financed by international funding agencies. Projects outside
these categories are managed at the College level.
1.2 Intellectual Property
Identification of intellectual Property, through liaison with researchers
Establishment of suitable route/mechanism for protection of the IP
Advising on the timing and the scope of the patenting process.
Management of IP.
IP auditing
1.3 Commercialisation
Commercialisation is a process of converting a research project into a marketable product or service, which
entails:
Establishment of a proof of concept to ensure that the research concept is technologically viable.
Establishment of proof of value (i.e. whether: the research concept is commercially viable, or there a
willing market, or the product can be modified to suit the market)
Translation of the research project from concept to a commercial model either through piloting the
project or incubation. Incubation/piloting will provide key indicators as to:
Skills level and number of people required for the commercialization stage;
Equipment needed;
Facilities needed;
Funding sources;
Pricing structure;
Marketing strategies; and
Further product development.
1.4 Consultancy Services
This involves the utilisation of intellectual capital at UKZN to provide problem solving expertise in a wide
range of areas, such as: economic and business management, politics, environment, engineering and
education. Typical problem solving consultancy services include: feasibility studies, data analysis, design
and supervision of projects, equipment design as well as environmental impact studies.
32. ADMINISTRATION OF RESEARCH GRANTS AND CONTRACTS.
Research grants and contracts come from various sources. The University receives external
grants/contracts and also award internal grants for research purposes.
External grants include local and foreign sources of grants or awards. Internal grants include grants
awarded by the Research division and UKZN Foundation (UKZNF).
Internal research grants comprises of Competitive, Publication, Donations, Bursaries
and Scholarships and Equipment.
The different sources of grants are maintained in separate fund groups on the ITS system.
All grant funds must be used for research related expenditure only and are administered in accordance
with the University's Financial Regulations and are subject to the terms and conditions of the notice of
award (NoA).
2.1 Difference between grants and contracts
Research grants
These are research projects funded by statutory funding bodies, charities and foundations.
Research Contracts
These are externally financed research projects.
2.2 Terms and conditions
Internal Grants
As stated above there are two sources of these types of grants namely the Research department in the
form of Competitive grants, Publications, Bursaries and Scholarships, Research Equipment and
Donations; and the UKZN Foundation (UKZNF) in the form of Donations.
These internal grants must be used for research related expenditure only.
The award letters are issued either by the Research Department or the UKZNF and specify the
category of expenditure (budget) and values.
At all times permission must be obtained from the Research Department or UKZN for the transfer
of funds between budget categories.
Any unspent funds at the end of the project with the exception of Publication grants must be
returned to the Research Department or UKZNF.
All unspent publication grant funds on resignation or retirement of staff must be transferred to a
discretionary cost centre under the control of the Head of School.
External Grants
External grants are also from various sources. We have grants from statutory bodies such as National
Research Foundation (NRF), Medical Research Council (MRC), Water Research Commission (WRC), etc.
and these are called statutory grants as well as other external grants from either local or overseas donors.
These are referred to as other external grants and contracts.
Statutory Grants
These types of external grants must be used for research related expenditure only.
The award letter specifies the category of expenditure (budget) and values.
Permission must be obtained from the donor for the transfer of funds between budget categories.
Unspent grant funds must be returned to the donor.
4 Unspent funds may be transferred to another grant holder or researcher upon resignation or
retirement of staff with the permission of the donor.
The Research Department serves as an important communication link between the university
and the donor.
Other External Grants
As mentioned above these can either be local and or overseas Grants and Contracts
These types of external grants must be used for research related expenditure only.
A contract is signed between the University (Research Department) and the Donor.
The contract includes a financial section, which specifies the category of expenditure (budget)
and values.
Permission must be obtained from the donor for the transfer of funds between budget categories.
Unspent grant funds must be returned to the donor.
Unspent funds may be transferred to another grant holder or researcher upon resignation or
retirement of staff with the permission of the donor.
The Research Department serves as an important communication link between the university
and the donor.
2.3 Management of research grants and contracts
Each research grant or contract has a nominated grant holder. Who on approval is assigned a cost centre.
A grant holder, his or her administrators are responsible for day to day management of these cost centers
and should provide monthly management report to the head of school and Director: Research Financial
Services. Costs associated with a particular project get allocated to that approved costs centre. Those
costs will include research related staff compensation. Eventually the head of school is responsible for
day-to-day control of allocated funds and the costs centre. He may delegate this responsibility to a grant
holder or supervisor.
Costing and pricing
There is a university policy on Income generation, which addresses the costing, and pricing of externally
funded research grants and contracts. When pricing the project, the following has to be taken into
consideration:
That there is adequate return on investment (academic expertise invested to a project).
There is full recovery of both direct and indirect overhead costs.
Indirect: Institutional support costs are clearly defined and recovered accordingly.
Attributable costs: Cost of all time spent on a given project by establishment academic staff also
needs to be clearly defined.
There is full recovery of infrastructural support services.
The overhead recovery charge is based on a predetermined rate and is set out in analysis
undertaken by the Grants and Contracts Office in terms of the model based on the relationship
between identified support services, the academic teaching and research staffing resources.
Cost centre application
It is the responsibility of the grant holder or the principal investigator to apply for a cost centre as soon as
the contract/grant is awarded. Once the Research office has signed the contract, the grant holder has to
complete the cost centre application and forward to finance for processing. Finance will notify the grant
holder once the cost centre is activated. It is always not advisable for the PI to use an alternative cost
centre whilst waiting for the activation of the project cost centre. Different cost centres have different
Value Added Tax (Vat) implications.
Cost centre application can be viewed on http://finance.ukzn.ac.za/Document_Forms.aspx
5Financial Reporting and audits
Most of the externally funded grants and contracts as well statutory grants have specific financial
reporting requirements. Some even require institutional or grant specific audits.
If the contract has a reporting and audit clause this should be communicated by either the grant holder or
the Research office to the Director: Research Financial Services. This will ensure that the university
complies with the donor financial reporting and audit requirements. The Director of Research Financial
Services will initiate the financial reporting and audit process on behalf of the University or College.
3. FINANCIAL REGULATIONS
The University has a set of Council approved financial regulations and below is an extract of the relevant
financial management and control regulations:
Responsibilities for financial management
• Deans/Head of schools are responsible for overseeing the finalization of the annual expenditure
of the schools and units under their control.
• They are accordingly responsible for the authorization, monitoring and control of expenditure
against their approved budgets.
• Whilst they are not expected to maintain day-to-day control of research and other external
funding awarded to individual staff members in their school, they have a duty to supervise such
funds and are to accept responsibility for managing the overall finances and funding to the school
in accordance with all relevant university policies.
• Deans/Head of schools are accountable for the moveable fixed assets that are assigned or are
leased to their schools. They are responsible for maintenance and verification of the school fixed
asset register.
Budgetary controls
• Every budget holder and controller shall exercise reasonable skill and care to ensure that there is
no fruitless and wasteful expenditure, irregular expenditure or unauthorized expenditure.
• Deans and Heads of School are responsible for expenditure relative to budgets within their
designated areas of responsibility. The control of expenditure within an agreed budget may be
delegated by a Head of School to a designated budget controller who must ensure that day-to-day
monitoring of such budgets is undertaken effectively.
Effective and efficient use of resources
Deans/Heads of school are responsible for the effective and efficient use of financial resources
allocated to them.
Follow University Policies and procedures
• We deliberately included this point because we have had cases where University policies are just
not being adhered to. We are concerned about specifically procurement policies. We are aware
that there are still bureaucracies in our financial systems but request that we adhere to these
systems. They are there as control measures. This will talk about procurement policies; she will
highlight specific process and procedure: please get three quotes if you have to, use university
vendors if they are available.
• Regarding research grants and contracts please ensure that both University policies and grant
conditions and guidelines are adhered to.
6Cost Reports
The summary and detailed view access to cost reports is available. These are updated on a daily
basis. It is advisable that all Finance administrators and relevant stakeholders obtain access to the
cost centre reports. Cost reports can be viewed on the following website: http://ccreports.ukzn.ac.za
4. PROCUREMENT – I-ENABLER REQUESTS
In November 2012, the University Finance Committee took a decision to amend certain thresholds insofar
as the procurement of goods and / services is concerned. The following thresholds were implemented
with effect from 1st November 2012:
Any amount up to R5000 – no quotation required
R5000 to R10, 000 - one quotation required.
R10, 000 to R500, 000 - Three quotations required.
Any amount exceeding R500,000- to go out to tender/ Request for Proposals (RFP) / Request for
Bids (RFB)
All the amounts mentioned above are inclusive of VAT. Any deviation from the above threshold will
require a justification form to be completed (Annexure 2), thus giving strong reasons as to why adequate
quotes were not obtained. It should be noted that the justification form is not intended to replace the
normal procurement procedures, but to facilitate the sourcing in situations where the normal process will
delay service delivery if followed.
Purchase Requisitions
Once a requestor / administrator in charge of a particular cost centre that is administered by
UKZN InQubate obtain quotes, she/ he generates a purchase requisition electronically through I-
enabler system.
Requisitions usually with RY serial numbers are received electronically by a buyer(s) at UKZN
InQubate from users.
Buyer evaluates a requisition to check whether the procurement procedures and processes were
followed based on the quotation thresholds mentioned above. If otherwise, the buyer will ensure
that there is compliance in the procurement of goods and services
Suppliers are normally selected from the university Creditors listing.
Services of Single Source Suppliers can be utilized where specialized goods / services are
required. A motivation / justification form must be submitted / completed for approval as
stipulated in the procurement policy.
A requisition is then validated and accepted by a buyer at UKZN InQubate and is routed to the 1 st
Approver who will accept or reject the requisition being processed.
If accepted by the 1st Approver, a requisition that falls within sequence 1 (up to a maximum of
R50, 000) will be re-routed the buyer to place order.
A requisition that falls within the sequence 2 (between R50,000 and R500,000) will be re-routed
to the second Approver, If accepted by the 2nd Approver, sequence 2 requisition will then be re-
routed to the buyer to place order.
The I Enabler system has been programmed to accept requisitions electronically up to the
maximum of R250, 000. Any amount in excess of R250, 000 will have to be generated manually
by the buyer using a dully completed Internal- Purchase Requisition for Goods / Services Form.
Buyer either faxes or e-mails the order to the supplier and / requestor, advising on the delivery
address, etc.
It should be noted that there is delegation of authority based on the amount in the order, to be
decided by UKZN-IQ Management.
7Some information to help the process run smooth
If you are not sure of a creditor code or GLA code to use kindly contact our procurement division
or the accountant (contact details are provided on this booklet).
Always select UKZN-IQ buyer before completing your requisition otherwise your requisition will
go into a pool and it will delay the process.
Buyers always get notifications of new requisitions as soon as they selected as responsible buyer
for that particular requisition. There is therefore no need for you to call to inform the buyer.
Please contact Londo (Ext 7088) or Vishnu (Ext 8643) if you need to know how to select a buyer.
Please itemize all the products on the requisition exactly as per quote. With books type in the
name of the book and author.
With Cartridges and computer related equipment please type in the description as it appears on
the quote. This is to ensure that we can check that the goods you receive are what you ordered.
Catering- Please include name of the event eg. Seminar and the date of the event. Requisitions
without dates in the description field will not be processed.
Always remember that you are not allowed to receive any service or goods without an order
number. Any requisition that comes for a service that has already been rendered or goods
already received will be rejected.
In a case where the caterer has included VAT on their quote, you need to use the final amount as
the unit price and the quantity will be 1. This is because the university is not supposed to pay
VAT for catering, as it is 0%.
You MUST have 3 quotes for anything that is more than R 10,000 in value. This includes
catering.
Please ensure that you put through requisitions at least 48 hours before the day the service is
required. Especially for Flights, accommodation, car hire and catering. We have been
experiencing a lot of problems where requesters put requisitions through late and then they put
buyers under pressure.
Flights- please type the name of a person flying, the destination and the date in all flight
requisitions.
Car Hire- please use the creditor code for either Budget or Europcar depending on where Connex
obtained the quote. Do not use the Connex creditor code.
Car Hire- Include the name of the person who will be using/driving the car and the dates that
they will use the car for.
Preferred suppliers- please note that there is no list that that can be generated and forward by
the buyer to requesters. Buyers have to go on onto the system to find suppliers that are
registered with the University. This means that they can only give you a few suppliers at a time
depending on the service you require.
Quotations- Buyers will help you to get quotes where they can except for stationery and catering,
flowers and books.
Always send specifications if you need a buyer to get you quotations as it makes things easier
and can get the quotations much quicker and for the correct product.
Orders- once the order is placed, the buyer will write delivery details and send them to the
supplier. The requestor will always be copied on the email communication to suppliers. Please
do not call the suppliers or mail them until you have confirmation that an order number has
been sent to them.
Please check your goods on receipt to ensure that you have received what you ordered. Most
suppliers have a return policy of 7 days so please keep in line with that.
85. CREDITORS – PROCESSING OF ORDERS
What is required for an invoice to be processed?
Once goods have been received, a GRV has to be done on iEnabler and supporting documentation
uploaded. Please ensure that the GRV matches the invoice.
The creditor user name that has to be chosen is webgoved
Provided that all is in order, the Invoice will be validated and then captured on the system.
Payment will be paid in accordance to the supplier’s terms of payment with UKZN i.e. 30 days, 60
days etc.
If early payment is required, a motivation needs to be submitted and approved by the Authorized
signatory. For early payment a discount can also be negotiated.
Also note that the original invoice must be submitted to our office for audit purposes.
All invoices need to reach us as per the cut off dates set by central finance.
Requirements of Tax Invoice (S20) of the VAT Act
A tax invoice (greater than R3000) should contain the following details:
The words "tax invoice "in a prominent place.
The name, address and VAT registration number of the supplier.
The name and address of the Recipient i.e. UKZN, Private Bag X54001, Durban 4000.
Recipient's VAT registration number i.e. UKZN's VAT registration no: 4860 209 305.
An individual serial number and the date on which the tax invoice is issued.
A full and proper description of the goods or services being supplied.
The price excluding VAT, the amount of VAT and the amount including VAT, or the amount
including VAT and a Statement that the amount includes VAT and the rate at which VAT is being
charged.
6. REIMBURSEMENT OF EXPENSES
Travel and Subsistence
(Reimbursement rates for the period March 2012 – February 2013.)
Reimburse Travel Expenses (Local Travel)
Private Motor vehicles on official University business – R3.16
Overnight Accommodation and Subsistence (Local Travel)
Daily subsistence allowance (inclusive of accommodation and meals) – R303
Daily allowance (University pays for accommodation and meals) – R93
Local Subsistence (Employees more than fifty kilometres away from both their home and normal
place of work.)
Absent for more than 5 hours spanning a normal mealtime – R58
Absent for more than 10 hours, spanning two normal mealtimes – R88
Foreign Accommodation and Subsistence (outside the Common Monetary Area)
There have been significant changes to this allowance.
Please refer to the Finance Division website for information.
Refer to Annexure 5
9Minor Purchases
Maximum costs (as defined, and in accordance with the prevailing policy)
Receipts must be provided - R2 000
Petty Cash
The individual who obtains the petty cash float will be held liable for the entire float.
Receipts and deposits should be reconciled, at least on a monthly basis
Money to be stored in a safe.
The maximum allowable amount will be limited to R250.00.
The cash on hand should be “spot-checked” periodically.
At the end of each financial year, the following procedure to be followed:
Balance of petty cash on hand to be deposited into the petty cash account.
A certificate of the balance of petty cash held must be completed by the member of staff
responsible for the float.
The expense claim sheet (Annexure 1) to be submitted together with the original deposit slip of
cash on hand.
Cheque Requisitions
To be used only under exceptional circumstances.
Where the supplier is being used on a regular basis, it is advisable for them to be included on the
University’s database. Liaise with the buyer in this regard.
Permission to use an unregistered supplier must be obtained from procurement prior to
engaging them.
Supporting documentation must be attached with your requisition.
EFT Requisitions
To be used only under exceptional circumstances.
Permission to use an unregistered supplier must be obtained from procurement
Supporting documentation must be attached with your requisition.
Specimen documents – Annexure 6
Payment of Labour
To be processed via the personnel system. Has tax implications.
The payment of cash to casual labour is permissible based on the following criteria:
The amount is limited to R220 per day.
Payment is not done on a regular basis, ie weekly/monthly.
Does not exceed 4 consecutive days.
7. ASSETS
All assets purchased through the University Financial System must have an asset number. These asset
tags are sent to the Division/School by Finance Division. These tags must be glued to an asset as soon as
the asset is received.
Movable Assets with a value up to R9999 must be purchased from account code range 4000.
Movable Assets with a value of +R10 000 must be purchased from a Capital account
Head of schools/Divisions must notify the Assets Section of any assets to be written off.
The School/Division is required to keep a record of all assets purchased. The staff in the Assets Section
will be able to assist and advice with this process.
108. CONTRACTS MANAGEMENT
Grant Proposal Process Flow
Call for proposal – RO advises on funding opportunities regularly through notifications on
call for proposals from national and international funders
PI’s response to call for proposal – technical part of the proposal completed by the PI and
his/her team.
UKZN InQubate – collation and checking of documents and system upload. Each proposal
must consist of signed Form1, call for proposal, proposal, budget (incl overheads), other
supporting documentation if required by the funder.
Review process – the sequence as follows: budget, IP, legal vetting
Signing of proposal – by DVC Research or nominated signatory
Submission of signed proposal to the funder
UKZN InQubate – system update and upload
RCH GRANT
PROPOSAL PROCESS FLOW
119. HR APPOINTMENT FORMS
The HR appointment form needs to be submitted to UKZN InQubate by the second last working day of the
month
The following needs to be in place before the forms are submitted
Cost centre
Post number
HR approvers
Completed form
Once the form is received by UKZN -IQ and it adheres to the above it will be processed within 48 hours
For payment to be made on the 25th of the month the forms needs to be received as follows:
UKZN InQubate – 01st of the Month (if payment to be on the 25th of the same month)
Salaries Section – 07th of the said month
1213
10. THE UNIVERSITY OF KWAZULU-NATAL'S FRAUD POLICY AND RESPONSE PLAN
The policy is intended to set down the stance of the University to "fraud" as well as to reinforce existing
systems, policies, procedures, rules and regulations of UKZN aimed at deterring preventing, detecting
reacting to and reducing the impact of fraud of whatever nature or source.
The policy applies to all employees and students of UKZN and relates to all attempts and incidents of
fraud impacting or having the potential to impact on UKZN and its activities.
ACTIONS CONSTITUTING FRAUD (ACCORDING TO THE POLICY)
a) any dishonest, fraudulent or corrupt act;
b) theft of funds, supplies or other assets;
c) mal-administration or financial misconduct in handling or reporting of money, financial
transactions or other assets;
d) making a profit from insider knowledge;
e) disclosing confidential or proprietary information to outside parties for financial or other
advantage;
f) requesting or accepting of material value (free of charge or at a lesser price) from contractors,
suppliers or other persons providing goods or services to UKZN ,without proper disclosure in
writing to the relevant line manager ;
g) irregular destruction, removal or abuse of records and equipment
h) deliberating omitting or refusing to report or act upon reports of any such irregular or dishonest
conduct; bribery, blackmail, secret commissions and or extortion involving UKZN employees in
the performance of his/her duties;
i) abuse of UKZN facilities; and
j) any similar or related irregularity
IN KEEPING WITH THE FRAUD POLICY, THE UNIVERSITY WILL NOT TOLERATE FRAUD WITHIN THE
INSTITUTION AND WILL APPLY APPROPRIATE PREVENTION AND DETECTION CONTROLS.
WEBSITE DETAILS
Fraud policy and Response Plan and whistle blowing policy- http//registrar.ukzn.ac.za
Tip-offs Anonymous-tollfree number - 0800203285
1411. INSURANCE
All claim forms must be lodged with the Insurance Brokers within 30 days of the incident and any delay
will result in the claim being repudiated. It is therefore imperative that any insurance claim be attended
to without delay and in all cases potential claims must be reported immediately to the Insurance Officer.
All claim forms must be signed by the Head of School or other authorized signatory and returned to the
Insurance Officer within 14 (fourteen) days.
Accidental damage
- Report the incident to the Insurance Officer
- Complete claim form and return with quotation for repairs or replacement. If items
are beyond repair, a statement to that effect from a recognized supplier or agent
must accompany the quotation.
- Quote asset number
Thefts
- Report to RMS/Campus Protection Services and the report incident to Insurance
Officer
- Complete the claim form together with replacement quotation and asset number of
lost item.
Fire, Water and Lightning Damage
- Report immediately to Insurance Officer
- Complete claim form together with quotation and asset number and return to
Insurance Officer
- An insurance assessor will be appointed where extensive damage has occurred. No
item should be removed prior to assessment.
- Annexure 3 – 2012 Summary Insurance guidelines/procedures
15Annexure 1
Cash Amount
User Cost
Enter cash
UNIVERSITY OF KWAZULU NATAL - PETTY CASH ACCOUNT Centre number DATE: 04/ 06/ 2013
witdrawal
Pet t y Cash: R 500.00 50910
date
Cost Cent re M D 4 1 UKZN INQUBATE
INVOICE Float
VOUCHER GENERAL LEDGER EXCL VAT VAT TOTAL RECIPIENT account
NO DATE PAYEE CC ACCOUNT CODE Det ails
04/ 06/ 2013 Jack M D 4 1 3 0 0 2 3 Toll Fees 20.00 - 20.00 SA Road
07/ 06/ 2013 Jill M D 4 1 3 0 0 6 3 Post age - Sanof i Invoice 15.00 15.00 SA Post Of f ice
11/ 06/ 2013 Mike M D 4 1 3 0 1 8 8 Ref reshment s - Meet ing wit h Team X 250.00 250.00 Spar Glenwood
Cost centre details and
expense account allocation
Details relating to
pettycash expense and
amounts spent
- -
- -
- -
- -
* Wh e r e n o v a t i s c h a r g e d p l e a se d e l e t e f o r m u l a i n VA T C o l u m n TOTAL 285.00 - 285.00 285.00
closing balance plus unclaimed expenses must equal f loat . sum (n) sum (o) sum (p) (n) + (o) =(p)
R Prepared by/ ext Aut horised by HOD Checked by f or Finance Division
Opening Balance R 500.00 print :
Plus: Advances/ Ref unds sign:
less:Expenses ##### dat e:
Closing Balance 215.00
Expenditure
Details of person Approval
Calculation of cash on approval by
preparing pettycash by
hand HOD
finance.
16Annexure 2
JUSTIFICATION FORM
NB: The Justification Forms is not intended to replace the normal as sourcing goods and services but to facilitate the sourcing in situations
where the normal process will delay service delivery if followed. As per the Procurement policy, prior approval has to be obtained before
any of the following exercises can be executed: (tick whichever applicable to this request).
1. Justification for Paying one time vendor :__________________________
2. Justification for Not having 1 or More quotes:_________________________
3. Justification for Activating or de-activating a Vendor/s
4. Justification for Waiver of Tender : _________________________
Requester’s Name: ____________________________________
Contact Numbers: ____________________________________
Vendor Name: ____________________________________
Amount: ____________________________________
Date: ____________________________________
Back ground (Please give full description background):
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
Details and Conclusion (Please give full justification, Recommendation):
____________________________________________________________________________________
____________________________________________________________________________________
____________________________________________________________________________________
____________________________ _________________ _______________
Requested By: Signature: Date:
(Print name)
____________________________ _________________ _______________
Approval (Line Manager/ End-User) Signature: Date:
_______________________________ _____________________ __________________
Senior Buyer / Signature Date
Senior Buyer /
Procurement Manager
____________________________ ____________________ __________________
Approval: Accountant / Signature Date
____________________________ ________________ ______________
Approval: Executive /Director Signature Date
17Annexure 3
2013
SUMMARY
INSURANCE GUIDELINES/ PROCEDURES
UNIVERSITY OF KWAZULU-NATAL
INSURANCE GUIDELINES
CONTENTS
PAGE
1. INSURANCE GUIDELINES: GENERAL INFORMATION
1.1 WHO TO CONTACT
1.2 DUTY TO DISCLOSE
1.3 IMPORTANT CLAIM INFORMATION
2. MOTOR VEHICLE INSURANCE
2.1 University Vehicles
2.2 Hire of Vehicles
2.3 Motor Claims Procedure
3. ALL RISKS INSURANCE
3.1 Equipment removed from Campus
3.2 Money
3.3 Goods in Transit
3.4 Laptop Computers
3.5 Claims Procedure
3.5.1 Accidental Damage
3.5.2 Theft
3.5.3 Fire, Water and/or Lightening Damage
3.6 STUDENT PERSONAL ACCIDENT AND FUNERAL COVER
3.7 STAFF PERSONAL ACCIDENT AND FUNERAL COVER
3.8 LIABILITY COVER
4. DISCLAIMERS
18UNIVERSITY OF KWAZULU-NATAL
1. INSURANCE GUIDELINES: GENERAL INFORMATION
The Insurance Guideline Booklet is merely an overview and not all sections are mentioned, sections in
this Guideline are the main areas of activity.
It is imperative that every Department/College exercises good governance practices by maintaining a
high standard of safety and security. Do not leave valuables unattended or in sight of passers by. Lock
offices when vacating them.
Don’t leave laptops in the eye view of passing pedestrians
Ensure that all assets purchased are recorded in the University of Kwa-Zulu Natal Asset Register for it
to be covered by insurance.
Items not on the asset register are classified as consumables and the cost of these losses are borne by
the Department/College.
All claims not covered by insurance will be borne by the Department/College. This includes claims
within the deductible.
All claims or incidents giving rise to a loss must be reported to the Insurance office immediately or as soon thereafter as
reasonably possible. Maximum time 14 days
Other insured matters not mentioned in this overview can be discussed with the Insurance Supervisor on extension 2252.
1.1 WHO TO CONTACT AT THE UNIVERSITY
INSURANCE SUPERVISOR:
MRS C MUSTO EXT 2252
INSURANCE OFFICERS:
MRS A WHITEMAN (Pietermaritzburg) EXT 5322
MRS V GOVENDER EXT 7131
1.2 DUTY TO DISCLOSE
UKZN have a contractual duty to disclose to insurers anything that alters our policy from when we renewed it at the beginning of the
year.
This amongst others this is anything that materially alters the insured premises i.e.: Purchase of new vehicles, Buildings und ergoing
alterations, new assets.
Any alteration in the risk as above must be in writing to the insurance supervisor.
The Head of Department in terms of the 2011 Council approved Finance Asset Policy is responsible for assets of the College.
1.3 IMPORTANT CLAIM INFORMATION
Report an incident giving rise to a claim or likely to be a claim immediately to the insurance office. Report all facts related to
the claim. It is only the form and required document which can be used to determine whether or not the claim is payable.
Claim reporting via the submission of a completed claim form must be done within 14 days from the date of the incident. It
is imperative to notify the University Insurance Officer immediately upon the happening of an incident relating to a loss.
RMS do not report your claims to insurers OR the insurance officers
2. MOTOR VEHICLE INSURANCE
(Covers UKZN vehicles and UKZN hired including liability to third parties)
2.1 ALL MOTOR VEHICLES – SECTION 1
Accident Excess R 7,500.00
Theft Excess R15,000.00
Windscreen Excess R 7,500.00
Quadbike excess R10,000.00
SECTION 2
In addition to the above excess: the following excess is applicable:
Quad Bikes: Quad bikes which are not registered and/or the driver
who does not hold a valid motorcycle license the excess is R5000.
19These excesses apply to all University and non-University funded activities/institutes/units. The excesses for both University
and non-University funded vehicles are to be borne by the Unit claiming.
The following regulations in respect of the use of University vehicles must be adhered to at all times:
a) No person is authorised to drive a University motor vehicle unless he or she has been in possession of a valid driver 's
licence for a minimum of one year.
b) Drivers of University quad bikes are to have a motorcycle licence code A.
c) Drivers must be in possession of a valid driver’s license, where a driver does not hold a South African driver’s license; the
driver would need to have an International Driver’s licence valid for the drivers’ period of stay in South Africa.
d) Depending on what vehicle you are driving e.g. busses, transporting of goods etc, a ‘Professional Driving Permit’ is required
by law. Information on to PDP can be obtained from the Finance Innerweb page section pertaining to Insurance Documents.
e) The person responsible for authorising and/or requisitioning the use of
a University vehicle will be held accountable for ensuring that the
requirements and/or restrictions regarding the use of University vehicles
are strictly adhered to
f) Before authorising a staff member or student to drive a University
vehicle, the Head of Department or Manager of Student Governance, Leadership and Development or other duly authorised
signatory MUST obtain a photostat copy of the driver's licence and ID photograph section of the Book of Life, which must be
retained in the Department and updated each year.
g) Vehicles are to be inspected for damages by the staff member or
student prior to using it each and every time the designated driver is changed.
Any damages must be reported to the Head of Department authorising use, who in turn reports it to the Finance Insurance
Officer.
h) Use of vehicles by the SRC must be authorised by the Head of Department or Manager of Student Governance, Leadership
and Development or other duly authorised signatory.
A register of accidents will be kept to facilitate the taking of disciplinary action where appropriate and for possible
withdrawal of driver privileges.
2.2 HIRE VEHICLE COVER
a) All University hire vehicle agreements entered into on behalf of the University are insured via the University policy and
hirers, must not take the “Collision Damage and Theft Damage Waiver” insurance clause.
b) University hired vehicles are covered by the University Insurance policy.
c) Excesses detailed in 2.1 above are borne by the Department/College cost centre used for the hire. The car hirers ‘claim
admin fee’ and other cost not part of an insurance claim will be charged to the Department/College using the vehicle.
d) Claims procedures in 2.3 below are to be adhered to.
e) Vehicles must be inspected by the user prior to hire and on return, should this not take place damages claimed by the
respective hire company are debited to the hirers cost centre. To prevent this check the vehicle on return with an
employee of the car hires company and report to University Insurance Office immediately anything that may constitute a
damage claim to the hired vehicle.
f) Procedures for use of University vehicles in 2.1(a-h) above must be adhered to for hired motor.
2.3 MOTOR CLAIMS PROCEDURE – FOR ALL CLASSES OF MOTOR COVER
a) NEVER admit responsibility for any accident causing injury or damage to third parties, even if it is obvious that you
were to blame. Refer all correspondence, letters of demand and summons to the University Insurance Officer
immediately.
b) Report the accident to the nearest Police Station and obtain the case number within 24 hours.
c) It is imperative when a third party is involved to record their name, address, ID Number, telephone number and
vehicle registration number.
d) Report accident to the Head of Department who must in turn advise the University Insurance Officer immediately.
e) Fully complete the claim form obtained from the University Insurance Officers detailed on page 4 and return within
14 days from date of the incident with a clear copy of driver's licence and ID and in respect of University vehicles,
three quotations for repairs to vehicle from a reputable panel beater.
g) Ensure the claim form is signed by the driver of the vehicle
and the Head of Department or authorised representative.
h) If the necessary documentation is not completed as detailed above, and it results in repudiation, the cost of the
claim will be debited to the cost centre of the Department/College claiming.
i) If you completed a claim form for a hired vehicle through the respective car hire company, it is imperative that you
follow the procedures above for the University to settle Hired Vehicle claims.
j) All claims must be reported to our insurers within 14 days from the date of the incident giving rise to the loss, it is
therefore important that your claim documents reach the University Insurance Officer within 14 days from the date
of the incident giving rise to the loss.
203. ALL RISKS INSURANCE
All Departments/College must ensure that all equipment appears against the asset register.
All assets over R5, 000.00 appearing in the asset register are insured on an All Risks basis.
It is important for Departments/Colleges to keep the Asset Register updated with current replacement values as insurers
require confirmation of the asset register for replacement in the event of a loss.
Excess varies according to the class of claim, e.g.(not limited to the following): theft – R20,000, accidental damage R10,000,
fire – R5,000 it is best to discuss the loss with the University Insurance Officer who will advise you accordingly.
3.1 EQUIPMENT REMOVED FROM CAMPUS FOR OFFICIAL PURPOSES
Head of Department or authorised representative in terms of the Finance Asset Policy is required to ensure that all assets
removed from the Campus are entered in a register held in the Department concerned. It is essential that the University
Insurance Officer and College Asset Section be informed of the relocation at the time, for proper recording and control. Failure
to adhere to this requirement may nullify insurance cover in the event of a loss.
3.2 MONEY
Keys to petty cash boxes and/or cabinets must not be left in a desk drawer or any other accessible place, as this could
jeopardise a claim in the event of a theft.
The petty cash payment requisition and supporting receipts must not be kept in the petty cash box as in the event of a claim it
is very difficult to substantiate the amount claimed.
3.3 GOODS IN TRANSIT
Goods in transit must, wherever possible be locked in the boot of the vehicle and not left on the seats where they are visible.
Unless there is forcible and violent entry, such claims will be repudiated.
There is no cover for items left in a vehicle overnight unless the vehicle is locked in a garage. Theft must be accompanied by
forcible/violent entry from the locked garage.
3.4 LAPTOP COMPUTERS – All Laptop Losses whether within the excess or not must be reported to the insurance office
1. All new Laptops are to be purchased with a Kensington Lock or equivalent locking device.
2. All existing Laptops at home or in the office must be secured with a Kensington Lock or equivalent device. Laptops that are
transported must be in a locked boot.
3. All Laptops must be locked away when not in use.
4. All claims for Laptop thefts or losses will be investigated thoroughly and will not be replaced where it has been established that
the theft or loss was a consequence of not adhering to the insurance guideline.
5. Do not leave your laptop in an unlocked unattended office. Claims will not be paid where the loss was from an unlocked
unattended office.
6. No claims will be considered where it has been established that the Laptop was left in a locked office and there was no visible
sign of forced entry.
7. Laptops in transit procedure 3.3 above refers.
3.5 CLAIMS PROCEDURE – NON MOTOR CLASSES
It is imperative that any insurance claim be attended to without delay and in all cases potential claims must be reported
immediately to the University Insurance Officer.
All claims forms MUST be lodged with the Insurance Brokers within 14 days of the incident and any delay will result in the claim
being repudiated.
All claim forms must be counter signed by the Head of Department or other designated authorised signatory and returned to
the University Insurance Office within 14 (fourteen) days.
Excesses or deductibles are the first amount payable in the event of a claim. These depend on the class of claim. If the
replacement or repair is within excess, the Department/College or cost centre the asset is linked to, replaces/repairs the item.
213.5.1 Accidental Damage
(a) Report the incident to the University Insurance Officer.
(b) Fully complete claim form and return with quotation for repairs or replacement. If item is beyond repair, a
statement to that effect from a recognised supplier or agent must accompany the quotation.
(c) Quote Asset number.
3.5.2 Thefts
(a) Report to RMS/Campus Protection Services.
NB: RMS do not report the loss to the insurance office, the onus is on the Department/College to report to the
insurance office within the defined time period in 3.5 above.
(b) Report the incident to the University Insurance Officer.
(c) Fully complete the claim form together with replacements quotation and asset number of lost items.
3.5.3 Fire, Water and Lightening Damage
(a) Report immediately to University Insurance Officer.
(b) Fully complete claim form together with quotation and asset no. and return to Insurance Officer.
(c) An insurance assessor will be appointed where extensive damage has occurred. No items should be removed prior
to assessment.
3.6 STUDENT PERSONAL ACCIDENT AND FUNERAL INSURANCE
Applicable to full time registered students. Limited to R10, 000 death and medical expenses. R250 deductible applies to
medical claims.
.
3.7 STAFF GROUP PERSONAL ACCIDENT AND FUNERAL INSURANCE
This insurance applies to all UKZN full time staff and temporary staff whose contract of service is for a period of 2 years or
longer.
For further information your Human Resource Officer or Insurance Officer would be able to assist you
3.8 LIABILITY CLASSES
UKZN have various liability classes, cover to be discussed with the Insurance Officer.
4. DISCLAIMERS
Where possible, exposure to any risk will be minimised by displaying notices or incorporating in documentation that the
University cannot be held responsible for any damage, injury or consequential loss as a result of such activity or advice given.
22Annexure 4
LABORATORY & OTHER
30022 S&T FIELD TRIPS 30264 EQUIP.Annexure 5: Expense claim form
24Annexure 6: Payment Requisition
25Annexure 7: Specimen Signature
UNIVERSITY OF KWAZULU-NATAL
AUTHORISED SIGNATORIES FOR CHEQUE, PETTY CASH, IDR AND JOURNALS – 2013
1. The list of authorised signatories must be submitted to the Finance Manager: College of Humanities, and on receipt thereof,
will supersede all previous signing authorities.
2. All changes in signatories must be authorised by the Dean and HOS, Director or Head of Division, as appropriate.
3. The cost centre code, for which the signatures are valid, MUST be indicated.
4. Except as provided for in 5 below, ONE signature is required to serve as valid authorisation for any given payment/requisition.
5. Any transaction in excess of R10 000 shall require TWO authorised signatures, provided that the Dean and HOS may decide
that, in the case of transactions below R10 000, either ONE or TWO signatures will be required in respect of his/her School.
Unless otherwise indicated, a SINGLE signatory requirement will be deemed to be applicable in respect of all individual
transactions not exceeding R10 000.
SCHOOL/UNIT___________________________________________ Contact Person____________________ Ext: ____________
A. SIGNATORIES OF DEAN AND HOS AND AUTHORISED SENIOR MEMBERS OF STAFF
Name, Initials and Title(Prof, Dr, Mr) Specimen Signature Designation ( eg, Cost Centre Cost Centre Cost Centre
Dean, AO, Code Code Code
Lecturer)
B. DECLARATION
I, ___________________________________(insert title, initial & name), certify that the above is the current list of authorised signatories
in respect of the cost centres indicated and that the persons to whom signing authority has been delegated and whose specimen
signatures appear above:
1. Are in a position to effectively challenge the authenticity of all vouchers submitted for authorisation, with particular reference to
the necessity for, or the legitimacy of, the expenditure in question; and
2. Acknowledge that they understand fully their duties and responsibilities when signing payment requisitions on behalf of the
University of KwaZulu Natal and that they may be called upon to account for any loss resulting from the abuse of their signing
powers.
CERTIFIED BY
DEAN & HOS: ___________________________________________________ ___________________ _______
SIGNATURE DATE
AUTHORISED BY
DIRECTOR/DVC: ___________________________________________________ ___________________________
SIGNATURE DATE
2627
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