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Financial Management Principles

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Section 1 - Overview and Scope

(1) These Financial Management Principles and associated Financial Management Guidelines outline the aims, processes, roles and regulations in place to guide UNE and its controlled entities in ensuring appropriate and consistent financial and financial risk management.

(2) These Principles apply to all UNE Representatives involved in financial and financial risk management, particularly the following areas:

  1. risk appetite;
  2. liquidity and funding;
  3. interest rate management;
  4. foreign exchange transactions;
  5. investments;
  6. financial counterparties; and
  7. financial operational risk.
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Section 2 - Principles

Principle 1 – UNE and its controlled entities manage their finances and financial risk in a manner that is prudent and cost effective, reflects the needs to stakeholders and assists in the achievement of strategic objectives.

(3) We observe this principle by:

  1. managing finances and financial risk in line with the objectives and values of UNE as outlined in the UNE Strategic Plan;
  2. adopting a level of financial risk that is appropriate for a not-for-profit, government owned enterprise;
  3. ensuring adequate liquidity for all circumstances;
  4. maintaining a mix of fixed and floating interest rates on investments and debt, with a focus on maximising returns while limiting risk to an acceptable level;
  5. creating hedging strategies to lock in the $A value of transactions;
  6. establishing an investment portfolio and management guidelines that reflect investment objectives and risk appetite;
  7. assessing the merits of any prospective investments within the framework of UNE’s core values, specifically sustainability and ethical behaviour;
  8. limiting counterparty exposure based on credit ratings and institutional exposure limits; and
  9. using insurance where appropriate and applying controls to minimise the potential for financial loss through human error, fraud or inappropriate use of financial instruments.
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Section 3 - Quality Assurance

(4) The Chief Financial Officer will report on financial management to the Finance and Infrastructure Committee and the Investment Sub-Committee at each meeting of those Committees, and to the Vice-Chancellor and Chief Executive Officer on the operation of, and compliance with these Principles and subsequent Guidelines.

(5) The Financial Management Guidelines provide additional information to support UNE Representatives’ adherance to the required standards regarding financial management and financial risk management.

(6) UNE Representatives engaging in financial and financial risk management activities can seek advice and support from Financial Performance and Analytical Services.

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Section 4 - Authority

(7) The Finance and Infrastructure Committee makes these Principles which have the effect of a Rule.

(8) These Principles operate as and from the Effective Date. Previous rules, policies and procedures related to financial management are replaced and have no further operation.

(9) The Steward for these Principles is the Chief Financial Officer.

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Section 5 - Definitions

(10) Counterparty: the other party that participates in a financial transaction.

(11) Liquidity: funds where availability is both immediate and unrestricted. 

(12) Risk Appetite: the level of financial risk that is accepted as being consistent with an organisation’s goals.