the Royal University of Bhutan Financial Rules and Regulations 2022 (RUBFRR-2022):

1. Purpose and Scope

• RUBFRR-2022 provides comprehensive guidelines for financial management across RUB and its constituent colleges.

• It ensures accountability, transparency, compliance with Bhutanese Accounting Standards for SMEs, and supports academic and operational goals.

• Applies to all RUB colleges, the Office of the Vice Chancellor (OVC), and affiliated entities.

2. Key Objectives

• Provide operational guidance for finance personnel.

• Standardize financial practices across colleges.

• Ensure timely and proper budgeting and expenditure reporting.

• Integrate global best practices like accrual-based accounting (BAS for SMEs).

• Enhance internal control and audit mechanisms.

3. Governance Structure

• University Council: Highest authority for financial matters.

• Vice Chancellor: Oversees budget presentation and resource management.

• Director, Planning & Resources: Advises on funding, budgets, and investment.

• College Presidents: Accountable for financial health at the college level.

• Chief Finance Officer (CFO): Develops financial policies, supervises audits, and ensures regulatory compliance.

• Finance Officers: Maintain records, support budgeting, and ensure asset control.

4. Accounting System

• Dual system: Government budgetary accounting via ePEMs and financial reporting via BAS for SMEs.

• Uses a Chart of Accounts (CoA) to track income, expenses, assets, liabilities, and equity.

• CoA is structured to support decision-making, audit trails, and accurate financial reporting.

5. Financial Statements

Includes:

• Statement of Financial Position

• Statement of Comprehensive Income

• Cash Flow Statement

• Statement of Changes in Equity

• Notes to the Accounts

These follow BAS for SMEs, ensuring reliability and comparability for stakeholders.

6. Audit and Internal Control

• RAA (Royal Audit Authority) conducts external audits.

• Statutory audits ensure compliance with financial standards.

• Internal audits review operations, governance, and compliance.

• Ethical principles emphasize integrity, transparency, and independence in financial decisions.

7. Delegation of Financial Powers

• Powers are categorized as Ordinary and Extraordinary.

• Specific roles and limits are assigned to various positions (e.g., Presidents, Directors, CFO).

• Delegation rules cover expenditures, procurement, travel, leave, and asset management.

8. Preservation and Destruction of Records

• Financial records must be preserved for 2 to 10 years depending on type.

• Destruction requires clearance from RAA and proper documentation.

9. Ethical Guidelines

• Staff must maintain confidentiality, avoid conflicts of interest, and ensure accuracy.

• Financial decisions must not be influenced by external pressure or personal gain.