The Financial Operating Framework is a key enabling mechanism to support increased transparency, accountability and ownership of financial performance across Queen’s, as well as supporting the delivery of Institutional Strategies. The Financial Operating Framework consists of three components; the Reporting Solution, the Accountability Framework and Incentivisation.

The purpose of the Financial Operating Framework is to facilitate broader communication of Faculty and Professional Services financial performance, risks, mitigating actions and to increase strategic and commercial considerations.

The Framework will help to ensure that there is effective management of financial performance across the University. It transfers ownership of financial performance from Finance to budget holders across the University who will monitor and report on their financial performance, and manage resources alongside the delivery of services.

The Financial Operating Framework supports the University to deliver enhanced financial planning and decision making, enabling delivery of strategy, investment for the future and increased financial resilience. Implementing the Framework will create increased visibility and transparency of financial performance, in a consistent format, on a monthly basis. 

The Financial Operating Framework will be using the new reporting solution developed within Power BI to provide a partially automated monthly financial performance reporting template. Faculties and Directorates Power BI to present key financial performance information, identified risks and associated mitigations. Finance will use this information and consolidate it into a University wide view of financial performance, which will be reported to Senior Leadership. This will result in increased consistency, transparency and visibility of financial performance across the University.

Faculties and Professional Services have greater flexibility to manage their resources in a more agile way. Decisions will be made on an affordability basis and Faculties and Professional Services are required to consider and review interdependencies.

All affected stakeholders are receiving training to support the transition to the new ways of working as part of the Financial Operating Framework. As the Framework continues to embed into business as usual, feedback will be sought from key stakeholders to understand what is working well and where improvement could be made. We expect this period to drive iterative improvements, including refining the month-end reporting template, shaped by feedback and experiences.

The Incentivisation Scheme is being designed to reward successful performance against targets, enabling the institution to deliver financial sustainability and increase resilience to financial challenges

Principles of target setting and incentivisation are:

• Reward successful performance against targets
• Allow access to additional operating expenditure
• Provide a holistic approach to incentivisation and target setting will encourage and drive accountability
• Encourage medium term financial planning and support financial management and ownership
• Be set at PVC and VP level, and then be cascaded down to schools and directorates

It is intended that this element of the Framework comes into effect from 2025/26 academic year. 

Training has been provided to all stakeholders who are directly involved in the month end reporting process. For details of further training available please contact your Finance Business Partner.