Related Party Declaration Information and Guidance
This is an edited version of the Related Party Declaration Information and Guidance Document (PDF)
What is the Annual Related Party Return Exercise
As part of the annual external audit of UCL's consolidated accounts, senior staff and UCLB subsidiary company directors are required to complete an annual return to declare any transactions or relationships by themselves, by their close family or by any entities in which they have a controlling interest, with UCL or any of its subsidiaries or related entities (to be referred in this document as the 'UCL Group'). Such disclosures are then evaluated to decide whether they may need to be disclosed within UCL's consolidated accounts. This is in compliance with Financial Reporting standard 8 (FRS 8) on Related Party Disclosures.
This accounting standard requires disclosure of material transactions between UCL and its related parties in order that a reader of the accounts can decide whether the reported financial position of UCL may have been affected by such relationships.
What types of transaction require disclosure?
There are two main types of transaction that might require disclosure:
- Those arising out of a connection with key management, and should include any partnerships, companies, trusts or other bodies you are board member or director of, whether it be in an executive or non-executive capacity, with which UCL has a relationship. This could include, but not exclusively HEFCE, NHS Trusts, Research Councils and any charities which either give donations or sponsor research at UCL.
- Those with joint ventures and associates, including organisations such as UCL Partners, The Francis Crick Institute (formerly UKCMRI), and all subsidiaries and joint ventures of UCL Business.
Who Needs To Be Included In The Exercise?
Key management for this purpose includes those persons in senior positions who have authority or responsibility for directing or controlling the major activities and resources of the UCL Group. This will include the following:
- UCL Council Members
- Members of the Senior Management Team
- Heads of Professional Services divisions
- UCL Business (UCLB) Directors
- UCLB Subsidiary Company Directors
For such individuals the accounting standards also presume that members of their close family and any bodies in which they have a controlling interest will also be related parties
Close family includes your close family members and any members of your household (even if they are not legal family members) over which you have an influence.
Bodies in which you have a controlling interest include any partnerships, companies, trusts or other bodies in which you or your close family (as defined above) together have a controlling interest.
What information is required?
Where you, your close family or an entity which you control, have entered into a transaction with any part of the UCL Group or any of its subsidiaries or related entities at any time between 1 August 2012 and 31 July 2013 we require the following information:
- The names of the parties concerned (both on your side and the UCL entity involved)
- A description of the relationship between the related party and UCL
- A description of the transaction (its nature)
- The amounts involved in the transaction
- Any other background information useful to understanding the transaction
Please declare any unsettled amounts or transactions from previous years. If you are unsure of any amounts involved then provide details of the transaction and explain any uncertainty. We may be able to help with quantifying the amounts from our own records. If there are lots of similar transactions with the same UCL entity then we require an aggregate amount. If the transactions are dissimilar in nature then we require each transaction to be listed separately
Does remuneration count as a disclosable transaction?
Under FRS 8, the transactions we ask you to disclose do not include your contract of employment or reimbursement of expenses incurred in undertaking your work for the UCL Group.
Do I need to disclose very small transactions?
Disclosure may be required in the accounts of any transaction that is material. In this context materiality is considered both in the context of the UCL Group and the individual, so even quite small transactions may be relevant. It is better to include a transaction even if you are in doubt as to whether it is material.
Do I need to disclose family members attending or working for UCL in the year?
If a member of your close family has worked for UCL in a contractor or freelance capacity, this should be disclosed. If your child/ren have attended UCL this should be disclosed in this return.
When Does The Return Have To Be Submitted?
The return should be completed online, or if using a paper version signed and returned to the Director of Finance & Business Affairs by 31 August each year.
External address: Finance Division, UCL, Gower Street, London WC1E 6BT
Internal address: Finance Division, 6th floor, 1-19 Torrington Place
What happens once the return has been submitted?
After the return has been reviewed by Finance & Business Affairs, should any declarations reveal potentially disclosable transactions, a member of the team will contact the declarer to discuss the text of any such disclosure.
If you have any queries, please contact: Nicola Arnold, Director of Financial Control & Analysis, Tel: 020 7679 5612 or x45612.
UCL staff now have the ability to declare their related party transactions online. If you are not a UCL staff member or wish to submit your return manually, please use the UCL related party disclosure return form.
This page last modified
January 14, 2014
by Web Editor
University College London - Gower Street - London - WC1E
6BT - +44 (0)20 7679 2000 - Copyright © 1999-2006 UCL
Advanced Search |