• Section 1 - Purpose and Scope
• Section 2 - Process and Key Controls
• Section 3 - Key Requirements
• General Provisions
• Approval to Borrow
• Section 4 - Roles, Responsibilities and Accountabilities
• Chief Financial Officer
• Section 5 - Monitoring, Review and Assurance
• Section 6 - Recording and Reporting
• Section 7 - Appendix
• Definitions

Section 1 - Purpose and Scope

(1) This Procedure sets out the processes and requirements at The University of Queensland (UQ or the University) to manage monetary borrowings, and applies to all monetary borrowings that the University enters into as the borrower. This Procedure supports UQ’s Financial Governance Policy and applies to all UQ staff.

(2) The purpose of this Procedure is to:

1. enable due diligence and informed decision making on borrowings; and
2. provide assurance to UQ Senate and management that borrowings are managed appropriately and within agreed stipulations.

Section 2 - Process and Key Controls

(3) UQ may borrow funds in accordance with the Statutory Bodies Financial Arrangements Act 1982 (Qld).

(4) All borrowings are subject to approval by Senate and the Treasurer of Queensland.

Section 3 - Key Requirements

General Provisions

(5) The University may borrow funds in accordance with the Statutory Bodies Financial Arrangements Act 1982 and all borrowings are subject to the approval of the Treasurer of Queensland.

(6) The security, rate of interest, and other terms and conditions, must be approved by the Senate.

(7) The borrowing must be in Australian dollars and undertaken in Australia.

Approval to Borrow

(8) All proposed borrowings are subject to approval by Senate.

(9) Senate is responsible for:

1. approving borrowings including any material changes to existing loan agreements;
2. approving borrowing amounts and their associated terms, including the required repayment terms and interest rate structures (fixed or variable); and
3. determining borrowing limits and parameters as deemed prudent.

(10) The Senate Finance Committee, in consultation with management, will review and make recommendations to Senate in relation to the approval of borrowings.

Section 4 - Roles, Responsibilities and Accountabilities

Chief Financial Officer

(11) The Chief Financial Officer is responsible for:

1. reviewing and making recommendations to Senate Finance Committee in relation to the approval of borrowings;
2. facilitating and executing loan agreements in accordance with the terms approved by the Senate; and
3. ongoing administration as required to service and account for borrowings in accordance with applicable accounting standards.

Section 5 - Monitoring, Review and Assurance

(12) The Chief Financial Officer will establish internal controls and processes that will ensure borrowings are prudent and consistent with the University’s borrowing objectives and overall funding structure.

(13) Any breach of this Procedure must be reported to the Chief Operating Officer and rectified as soon as possible. 

(14) Any material breach of this Procedure will be reported immediately to the Chair of the Senate Finance Committee and, in addition, will be reported to the next meeting of the Senate Finance Committee.

Section 6 - Recording and Reporting

(15) The Chief Financial Officer will provide periodic reports to the Senate Finance Committee that includes:

1. details on UQ’s current and forecast borrowings; and
2. details of any breach of this Procedure.

Section 7 - Appendix

Definitions