Dean´s Directive No. 5/2023 ****************************************************************************************** * ****************************************************************************************** Title: Internal control system To implement: - Date of effect: 31 March 2023 Annexes: Annex 1: Model mandate for the head of a public administrati Annex 2: Individual pledge for preliminary management contro Annex 3: Limited pledge [ URL "FHSENG-1285-version1-2023_05_ Annex 4: Instruction to ensure payment for the ex-ante manag Annex 5: Record of interim management control of expenditure Annex 6: Record of ex-post management control of expenditure Annex 7: Record of preliminary management control prior to e Annex 8: Record of interim and ex-post management control of Annex 9: Guidance note for authorising officers and administ [ URL "FHSENG-1285-version1-2023_05_od_priloha_09_e Annex 10: Guidance note for authorising officers and administ "FHSENG-1285-version1-2023_05_od_priloha_10_eng.pdf Annex 11: Guidance note for authorising officers and accounti [ URL "FHSENG-1285-version1-2023_05_od_priloha_11_e *==================================================================== * Internal control system *==================================================================== *==================================================================== * PREAMBLE *==================================================================== The financial control system in the Czech Republic is regulated by th ensure that public administration manages and uses public funds in an manner. This serves to protect public funds from misuse or waste. It in public administration bodies. The internal control system is being Faculty of Humanities of Charles University (hereinafter referred to of its management. *==================================================================== * PART ONE: INTRODUCTORY PROVISIONS *==================================================================== --------------------------------------------------------------------- Article 1: Subject of the directive --------------------------------------------------------------------- 1.This directive is issued for the purpose of setting up the Faculty' 2.This directive regulates a.manages targets and control mechanisms, approval procedures - fin b.internal audit 3.This directive shall govern all employees of the Faculty who are in administration and control of public funds. --------------------------------------------------------------------- Article 2: Objective of financial control --------------------------------------------------------------------- 1.The Dean of the Faculty, as the head of the public administration b the administration of public funds shall ensure that they are manag effectively in accordance with the Financial Control Act. 2.Public funds are handled a.effective if the results achieved meet the identified need; b.cost-effectively, if resources are available at the right time, i quality and at the best possible price; c.effective if the best possible relationship is achieved between t achieved. --------------------------------------------------------------------- Article 3: Basic concepts --------------------------------------------------------------------- 1.Charles University, Faculty of Humanities represents, within the me Control, a public administration body as an organisational unit of unit. For this reason, it is obliged to carry out financial control 2.The circulation of documents and documents at the faculty is define circulation of documents at the faculty. 3.A public contract is a supply, service or works contract awarded by purchase order or contract or direct purchase. The procedures are d procurement at the Faculty. 4.The project, project teams are defined by the Dean's directive on p 5.An employee is a natural person who has a valid employment relation 6.Public funds represent in particular financial resources managed by Financial Control Act (e.g. resources from the state budget, EU fun 7.The regularity of a financial and property operation (hereinafter r operation') is its compliance with the law and the achievement of a economy, efficiency and effectiveness. 8.A financial or property operation (hereinafter referred to as an "e operation" or just "operation") represents a public expenditure and of the Faculty (e.g. payments of remuneration from concluded agreem (hereinafter referred to as "PPA"), payments of supplier invoices, rendered, etc.). 9.Legal regulations are a collective term for publicly binding norms, University, directives of the Dean of the Faculty and other interna --------------------------------------------------------------------- Article 4: Related legislation --------------------------------------------------------------------- These are the following standards: - Financial Control Act, - Decree No. 416/2004 Coll., implementing the Act on Financial Contro - Public Procurement Act, - the Accounting Act, - Value Added Tax Act, - the Higher Education Act, - Act on budgetary rules, - Dean's directive on public procurement records, - Dean's directives on public procurement, - Dean's directives on project activities, - Dean's directives on document circulation. *==================================================================== * PART TWO: ACTING ON BEHALF OF THE FACULTY, SIGNING AUTHORISATIONS A *==================================================================== --------------------------------------------------------------------- Article 5: Setting the rules of conduct and signature permissions --------------------------------------------------------------------- 1.The following directives of the Dean shall regulate the rules for t specific positions on behalf of the Faculty in the area of expendit a.Public procurement of the Faculty of Humanities of Charles Univer orders; b.Circulation of documents at the Faculty of Humanities of Charles contracts, FTE and FTE, for transactions with financial instituti authorities, donors, etc.). 2.The rules for setting the signature authorisations of the employees directive, and of the employees assigned to management control func directive on the circulation of documents at the Faculty. 3.If an employee does not have a proper signature template establishe (2) of this directive, he/she cannot act on behalf of the Faculty, orders and cannot perform the function of management control, even so by the Dean. 4.The agenda of signature patterns is continuously carried out by the Faculty, including the implementation of the GDPR regulation. --------------------------------------------------------------------- Article 6: Subject of management control --------------------------------------------------------------------- 1.Management control is a well-defined and binding procedure for prov related to the management of public funds are addressed by the Facu 2.Management control is exercised over all expenditure and revenue op 3.Management control a.begins with the preparation of the operation before its approval, b.continues to monitor it on an ongoing basis and c.ends with the settlement and clearing of the operation. This is f operation, which is evaluated against the results achieved. 4.The management control within the faculty is in the form of circula signing of documents and documents according to the rules of this d 5.The purpose of management control is to ensure that the entities/pe (e.g. senior faculty staff, grant administrator, project supervisor information available to make an informed decision, e.g. Before sig a supplier invoice, before announcing a tender, before signing an e a procurement contract, before paying salaries and remuneration fro account, and vice versa, e.g. when receiving funds in the faculty b --------------------------------------------------------------------- Article 7: Management control phase of operations --------------------------------------------------------------------- 1.The management control consists of three phases. These represent a facts relevant to the management of public funds a.in preparation for and prior to payment/receipt of expenditure an b.after the start of expenditure and revenue operations until their control); c.in the subsequent evaluation of the results achieved by the opera 2.Preliminary control is the approval of operations. It is the respon who, under the Financial Control Act, act as authorising officer, b in accordance with Articles 8 and 10 of this directive. 3.The preliminary check is two consecutive procedures: a.Initial procedure - preliminary check before commitment or entitl b.the following procedure - a preliminary check after the commitmen established. 4.Preliminary inspection is not carried out a.for expenditure and income transactions where the faculty cannot expenditure or income; b.for income of an incidental nature. --------------------------------------------------------------------- Article 8: Persons responsible for carrying out prior management cont --------------------------------------------------------------------- 1.Preliminary control is carried out by employees authorised in writi within the scope of their authorisation. The dean himself may also authorise employees to perform preliminary control in the capacity the management of public funds (hereinafter referred to as the 'pri and the chief accountant. 2.Only employees in the role of faculty department head may be design the Financial Control Act. 3.The staff assigned to the budget manager functions are senior staff relevant faculty budget (institutional, project budget, etc.) or ot 4.The staff member in charge of the accounting function is the head o for accounting (economic department) or another authorised staff me 5.The functions referred to in Article 8(1) may not be combined. --------------------------------------------------------------------- Article 9: Persons in charge of interim and ex-post management contro --------------------------------------------------------------------- 1.Continuous control and follow-up control are carried out by employe Faculty within the scope of their mandate. This control may also be 2.Persons appointed to these positions are employees of the Faculty. Articles 14 and 15 of this Directive. 3.The merger of functions referred to in Article 9(1) is possible. --------------------------------------------------------------------- Article 10: Delegation of management control --------------------------------------------------------------------- 1.Staff to functions a.the authorising officers, budget managers and accounting officers controls and b.to the interim and follow-up control functions is delegated by the Dean of the Faculty. A specimen of the delegati directive. 2.The agenda for the appointment is carried out by the Head of the Pr The credentials are submitted to the Dean of the Faculty for signat 3.At the same time, as of 30 June and 31 January of the calendar year date overview of the staff assigned to the functions according to t and projects, broken down into expenditure and revenue activities t 4.The credentials shall be issued in certificated form and shall be d one copy, whereby a.the first copy shall belong to the authorised employee after its b.the second copy is forwarded by the Dean's Secretariat to the Fac c.a copy is forwarded by the Dean's Secretariat to the Head of the 5.Any employee who has accepted a delegation of authority for one of Article 10(1) of this Directive shall, without undue delay, secure the Secretariat of the Dean of the Faculty in accordance with the r circulation of documents. 6.In the event that the employee in charge of the preliminary control does not have the signature specimen, he/she may not perform these established. *==================================================================== * PART THREE: EX-ANTE MANAGEMENT CONTROL FOR EXPENDITURE OPERATIONS *==================================================================== --------------------------------------------------------------------- Article 11: Preliminary check before commitment --------------------------------------------------------------------- 1.This control takes place during the preparation of an expenditure o order on behalf of the faculty and sending it, before signing an em a tender for a public contract, before signing a contract for the p (subsidies, etc.), before approving a business trip, before the dea contract, etc. 2.In preparing these operations, the operation originator shall verif a.the necessity of the operation (e.g. to meet the project's object faculty); b.compliance of the operation with legal regulations; c.the compliance of the operation with public procurement procedure d.compliance of the operation with the principles of effectiveness, this directive); e.substantiating the forthcoming operation with factually correct a (e.g. for the proposal for the FTA). 3.The Principal shall identify and assess the risks associated with t appropriate, propose directives to eliminate or mitigate them. 4.The authorising officer shall then draw up a draft individual commi operations referred to in the preceding paragraphs, shall decide wh expenditure operation. A specimen of the commitment is set out in A 5.If the authorising officer approves the expenditure operation, he/s forward it, together with the supporting documents, to the budget a 6.The budget manager shall verify that a.the expenditure operation has been authorised by the principal, b.the signature of the principal is identical to the specimen signa c.the expenditure operation is in accordance with the established m concluded or other decisions on the use of public funds, d.the operation has been screened for budgetary risks. 7.Based on the assessment of the above, the Budget Manager will decid expenditure operation. He/she shall confirm the approval of the fac this directive by signing the individual undertaking. 8.If the Budget Manager finds deficiencies, he shall interrupt the au his findings in writing to the principal, stating the reasons and, further evidence to justify his action. In this case, the individua authorising officer pending further action. 9.If the budget manager approves the pledge, the individual pledge sh documentation of the expenditure operation, e.g. to the application proposal for the conclusion of an employment contract, to the purch public contract is awarded, to the relevant procurement file. 10Without the approval of the individual commitment by the Principal expenditure operation cannot be initiated or implemented (e.g. a FT be concluded, a travel order cannot be approved, a purchase order c Faculty, a contract (purchase order) for the performance of a publi cannot be published in the Register of Contracts, etc.). 11Annex 9 provides guidance on the procedure to be followed by the pr public procurement cases. --------------------------------------------------------------------- Article 12: Limited pledge --------------------------------------------------------------------- 1.If it is expedient to ensure a.operational needs arising from the normal regular activities of t b.which must be secured operatively and c.if the creditor or the amount of the anticipated expenditure cann the Principal and the Budget Manager approve the limited commitment and (c) of this paragraph shall apply simultaneously. 2.For the approval of a limited commitment, the approval procedure in Directive shall apply. 3.A limited pledge is made for routine operational purchases (e.g. re the operational and technical department, costs of minor unplanned orders, etc.). 4.The limited pledge shall be approved by the relevant Principal and The financial limit cannot be exceeded. 5.The limited pledge provides a.spending limit, b.the specific time period for which the limit is granted; and c.the subject of the expenditure. 6.A template of the limited pledge is set out in Annex 3 to this dire sets out guidance on the procedure to be followed by the principal limited pledges. 7.A copy of the overall approved limited commitment should be forward undue delay. --------------------------------------------------------------------- Article 13: Preliminary check after commitment --------------------------------------------------------------------- 1.Before making a payment for an expenditure transaction (e.g. paymen supplier invoice for telecommunications services, invoice for the p withdrawal of money or valuables from the cash register, etc.), the transaction a.the existence of a commitment, b.state of performance, c.the correctness of the identification of the creditor, the amount d.the terms and conditions of the obligation; and e.compliance with the individual pledge (Article 11 of this directi 2.The Principal shall identify and assess the risks associated with t where appropriate, propose directives to eliminate or mitigate them 3.The authorising officer shall draw up a draft instruction to secure actions set out in this directive, shall decide whether or not to a operation. If he/she approves the expenditure, he/she shall sign th to the accounting officer for payment. 4.The Accounting Officer shall verify the following before making pay a.the consistency of the signature of the principal in the instruct signature in the signature specimen; b.the creditor, the amount and the maturity of the obligation are c draft order to secure payment; c.compliance of the instruction of the principal to ensure payment 11 of this directive); d.an expenditure transaction as an accounting case under the Accoun e.related accounting risks. 5.If the accounting officer approves the expenditure, he signs the in and arranges payment. The instruction shall then be attached to the expenditure operation (e.g. supplier invoice, cash disbursement vou 6.If the Accounting Officer finds deficiencies, he shall suspend the findings in writing to the Principal. In this case, the instruction with the principal. 7.Without the approval of the payment instruction by the Principal an expenditure transaction cannot be paid and financial settlement can cannot be paid, travel costs cannot be paid, a supplier invoice can be made, etc.). It also applies to the fulfilment of other financia legal entities from the bank account of the Faculty (i.e. not only relationships, e.g. reimbursements from grants, loans, etc.). 8.A model instruction to secure payment is set out in Annex 4 to this --------------------------------------------------------------------- Article 14: Ongoing control of expenditure operations --------------------------------------------------------------------- 1.Ongoing control of expenditure operations is ensured by the heads o departments, dean's office, project managers, etc.) or other person departmental employee who does not hold a managerial position). How who ensure the direct implementation of a given expenditure operati funds, e.g. during the implementation of a long-term project, durin investment project, where the implementation has been ongoing for a 2.The Dean of the Faculty may also exercise continuous control of exp discretion. 3.Employees for the performance of continuous monitoring shall be aut Faculty in accordance with Article 10 of this Directive. 4.The staff referred to in Article 14(1) of this directive shall veri a.compliance of the operation with the legal provisions and the pri efficiency (Article 2 of this directive), e.g. the ongoing implem budget; b.consistency of the expected and already achieved results of the o of the construction and investment project, meeting the objective project objectives, etc. 5.In accordance with the preceding paragraphs, the staff member shall associated with the ongoing operation and, where appropriate, propo mitigate them (e.g. where a supplier repeatedly and repeatedly fail under a service contract). 6.A record of the interim check shall then be made. Where it identifi it shall forward the record to the operation's principal for action and to address the deficiencies. 7.A model record of the interim inspection is set out in Annex 5 to t --------------------------------------------------------------------- Article 15: Follow-up of expenditure operations --------------------------------------------------------------------- 1.Similarly to the interim control (Article 14 of this directive), th the heads of the faculty departments and project managers or other 2.Subsequent control of expenditure operations may also be exercised Faculty. 3.Employees for the performance of follow-up checks shall be authoris Faculty in accordance with Article 10 of this Directive. 4.The employee verifies selected operations with the highest level of control, e.g. for EU-funded projects with a budget of over CZK 1 mi a high level of human labour (e.g. high number of FTEs), complex pr public contracts (e.g. sanctions list test and conflict of interest a.compliance of the expenditure operation with legal regulations an economy and efficiency (Article 2 of this directive), e.g. perfor technology, cost-effectiveness of the operation, etc; b.compliance with the terms of the decision or contract related to eligibility of final accounts, long-term FTA objectives, etc.; c.the consistency of the expected and achieved results of the opera d.(d) the facts relating to the operation as an accounting case und recording of costs, final accounts, etc. 5.The staff member carrying out this control shall identify and asses operation being controlled and, where appropriate, propose directiv 6.A record of the follow-up check pursuant to the preceding paragraph Where he/she identifies significant risks or deficiencies, he/she s operation's principal for action to eliminate or mitigate the risks 7.A model record of the follow-up inspection is set out in Annex 6 to --------------------------------------------------------------------- Article 16: Common provisions for intermediate and ex-post control --------------------------------------------------------------------- 1.The primary objective of the continuous audit is to verify the comp (completed) operations, knowing that they are public funds spent. 2.If the authorised employees of the faculty find during their perfor up control that public funds are being used wastefully, inefficient contravention of legal regulations (e.g. the Act on the Register of findings in writing to the Dean of the faculty. The latter is then Financial Control Act, to take directives to remedy the deficiencie to ensure the proper exercise of this control (e.g. remedying the l of the contract or the legal consequences of ineffective disclosure procedures and responsibilities, etc.). *==================================================================== * PART FOUR: MANAGEMENT CONTROL OF REVENUE OPERATIONS *==================================================================== --------------------------------------------------------------------- Article 17: Preparation of a revenue operation --------------------------------------------------------------------- 1.When preparing a revenue operation (e.g. the period before signing claim for revenue to the faculty budget, i.e. before signing a cont the faculty building for commercial activities, before submitting a co-financed from EU funds, before selling faculty property, etc.), operation shall verify compliance with a.revenue operations with established objectives and approved facul b.revenue operations with legal provisions and c.with the principles of effectiveness, economy and efficiency (Art 2.The Principal shall identify and assess the risks associated with t where appropriate, propose directives to eliminate or mitigate them 3.The Principal shall verify that the operation to be carried out is complete supporting documents. 4.On the basis of the assessment of the above, the authorising office non-approval) of the revenue operation and shall draw up a record o preceding paragraphs. The record shall then form part of the operat 5.A model record of the preparation of the revenue operation is set o --------------------------------------------------------------------- Article 18: Management checks on revenue operations - receipt of fund --------------------------------------------------------------------- 1.The objective of controlling revenue transactions is to ensure that (received) on time, from the right person (debtor) and in the right 2.If public funds are credited to the faculty's bank account (or to t authorised by the Dean to carry out the follow-up of the revenue sh credited from the correct person (debtor) within the meaning of Art verification shall be carried out before the income is entered in t 3.This employee is obliged to continuously monitor and evaluate wheth entitled (e.g. payment for renting premises for commercial purposes is properly credited to the faculty's bank account (or paid to the 4.In the event that an employee discovers that public funds have not a.verify the existence, amount and maturity of the claim; b.identify and assess the risks associated with the revenue operati directives to eliminate or mitigate them. 5.The staff member shall make a record of the actions referred to in it, together with the other supporting documents, to the principal 6.The Principal shall decide on the next course of action on the basi documents. The record is then part of the transaction documents (e. the asset). 7.Annex 11 to this directive sets out the guidance note for the autho officer to carry out ex-ante management checks after entitlement an 8.A specimen of the record referred to in paragraph 5 of this Directi Directive. *==================================================================== * PART FIVE: INTERNAL AUDIT *==================================================================== --------------------------------------------------------------------- Article 19: Internal audit of the faculty --------------------------------------------------------------------- 1.The internal audit is currently organised and independently provide University within the framework of the legal status of the faculty Internal Audit Unit of the Rector's Office of Charles University. 2.The Faculty's internal audit, which is a functionally independent u or is handled by an authorised employee of the Faculty, organisatio management structures, will be introduced as part of the Faculty's the consistent application of this directive to the practice of the implementation of financial control). 3.The task of the Faculty's internal audit will be to independently a operations and internal control system of the Faculty. *==================================================================== * PART SIX: COMMON AND FINAL DIRECTIVES *==================================================================== --------------------------------------------------------------------- Article 20 --------------------------------------------------------------------- 1.Internal management control approval procedures do not take place i electronic information system. They are governed by the rules for t documents in paper form, including signature authorisations, in acc the circulation of documents and the principles of this directive. 2.Since the financial control of the Faculty as defined by this direc Control Act, the responsible employees and employees appointed to m deviate from the established procedures of this directive only with Dean for a given economic operation. 3.The following annexes form an integral part of this directive: Příloha č. 1: Model mandate for the head of a publi Příloha č. 2: Individual pledge for preliminary man Příloha č. 3: Limited Pledge Příloha č. 4: Instruction to ensure payment for the Příloha č. 5: Record of interim management control Příloha č. 6: Record of ex-post management control Příloha č. 7: Record of preliminary management cont Příloha č. 8: Record of interim and ex-post managem Příloha č. 9: Guidance note for authorising officer Příloha č. 10: Guidance note for authorising officer Příloha č. 11: Guidance note for authorising officer 4.A list of the staff currently in charge will be published on the ef 5.This directive shall enter into force on the date of signature. 6.This directive shall enter into force on 31 March 2023. Prague, 31 March 2023 Ing. arch. Mgr. Marie Pětová, Ph.D. Dean A risk is a circumstance that, for example, may (but need not) negati of goods, i.e. that it takes place at the specified time, in the spec the specified contractual conditions, e.g. the faculty in the terms a consistent requirements for the quality of the ordered supply or serv