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Consultancy PolicySection1. IntroductionPage12. Definitions and Scope of the Policy13. Permitted Levels of Consultancy24. Approval of Consultancy Activity25. Income Distribution26. Costing and Pricing of Consultancy Activity37. Contractual requirements38. Recording activity49. Fee Waivers410. Tax and National Insurance4Process mapUniversity of Glasgow Consultancy Policy v1.3 (17 June 2014)Appendix
1.1.1IntroductionThe University recognises the value of its staff undertaking consultancy foroutside bodies. This work is an important channel through which knowledgeand expertise can flow to and from businesses and other external agenciesand therefore contributes to the development of growing and productiverelationships with these bodies. Consultancy activity within the University ofGlasgow is often associated with other contractual relationships, includingresearch, service contracts and in some cases the provision of funds toprovide studentships. It is therefore the University’s policy to encourage staffto engage in consultancy wherever appropriate and in a manner that isconsistent with their contractual responsibilities.1.2This policy is intended to provide the information required to undertakeconsultancy work in accordance with the University’s approved procedures.1.3University employees should also be aware of the Bribery Act 2010 and therelevant Compliance Section of the University’s financial regulations.2.2.1Definitions and Scope of the PolicyConsultancy: The University uses a broad definition of what constitutesconsultancy. Its essential features are:2.1.1 Consultancy is work of a professional nature, undertaken by Universitystaff in their field of expertise, for clients outside the institution, forwhich some financial return is provided;2.1.2 Unlike research it does not have as a prime purpose the generation ofnew knowledge;2.1.3 Consultancy will produce some form of contracted output which maybe partly or wholly owned by the client;2.1.4 The University normally does not have freedom of publication over theresults of consultancy;2.1.5 It tends to be governed by short-term contracts, makes minimal use ofUniversity resources and involves extra work for existing staff ratherthan the employment of new staff2.2Consultancy for companies owned by the University or in which a memberof staff may have an interest are also included within the scope of thisdocument. Staff are advised to ensure that they comply with the University’sConflicts of Interest Policy when undertaking any work for such companies 1.2.3Excluded from the above definitions: This policy does not apply to thoseactivities, paid or unpaid, which are in furtherance of scholarship or generaldissemination of knowledge, such as:2.3.1 Authorship of, or royalties from, the publication of books2.3.2 Service on public sector or charitable committees2.3.3 External examiner duties2.3.4 Lecture tours and conference presentations or attendance2.3.5 Editorship of academic journals or the publication of academic articles2.3.6 Professional arts performances2.4College arrangements for the consideration and approval of consultancyactivity may vary. Whilst this Policy refers to Heads of College, localarrangements may devolve this activity to the Head of School / Research1The University’s Research Policies can be found at: versity of Glasgow Consultancy Policy v1.3 (17 June 2014)1/5
Institute Director or other appropriate staff. Staff must take account of localarrangements in their interpretation of the requirements.2.5Staff should seek advice from their Head of College if they are unclear aboutwhether their proposed work constitutes consultancy. The Research SupportOffice will provide advice where necessary to Head of College in reaching adecision about the classification of a particular piece of work, but the finaldecision should be made locally.3.3.1Permitted level of ConsultancyUniversity employees are permitted to undertake up to 30 working daysconsultancy activity per academic year with the approval of their linemanager.3.2In some circumstances College may authorise staff to undertake furtherconsultancy work outwith this limit, but this must be discussed and approvedby the Head of College on a case-by-case basis.4.4.1Approval of Consultancy ActivityThe decision process for whether an individual is permitted to undertake apiece of consultancy is handled at a local level. All consultancy proposalsshould be passed to the appropriate Head of College in the first instance. TheHead of College will make the decision to accept or decline the proposal.4.2The decision to accept a proposal to undertake consultancy activity is notautomatic and factors including other sources of research income will beconsidered.5.5.1Income DistributionUniversity costs identified on the Consultancy Project Form (CPF) 2 will berecovered before the following income distribution model is applied.5.2The standard income distribution model is based on income per consultancyagreement per financial year.IncomeUp to 5,000Over 5,000Employee100%80%College0%20%5.3Individuals are not permitted to enter into more than one contract worth lessthan 5,000 with any one company in any one financial year.5.3In any financial year, a total consultancy income of 20,000 per staff memberis permissible under the standard distribution model outlined in 5.2, subject tothe discretion of the Head of College.5.4Above this threshold, College will require an alternative distributionarrangement to be implemented or require the activity to be managed under aservice contract.5.5Finance Office facilitate this decision by providing College with quarterlyreports of the consultancy income (per financial year) generated by their staff.2The current consultancy project form can be found y of Glasgow Consultancy Policy v1.3 (17 June 2014)2/5
6.6.1Costing/Pricing of Consultancy Activity3Normally, consultancy activity should be recorded using the CPF. This formprovides recommended daily rates for consultancy and only in exceptionalcircumstances (and with the approval of the Head of College) shouldconsultancy be undertaken at below this rate.6.2The form can be used to determine the consultant’s net income (followingdeductions for College share, any direct costs, tax and national insurance). Ifyou have any queries about the form, please contact Finance Office foradvice.6.3Completed CPFs should be signed by the PI and approved by the Head ofCollege and Head of School / Research Institute Director, then forwarded tothe Research Support Office for processing.6.4Some consultancy work, especially where University resources are beingused (technician time, equipment or IP) may be more appropriately managedunder a service contract. This is at the discretion of the Head of College andshould be discussed with her/him at an early stage in proposal development.6.5Where the activity is to be managed under a service contract, the activityshould be costed, priced and recorded using a standard PAF.7.7.1Contractual RequirementsThe University is liable for the actions of its employees during work-relatedconsultancy even if the actions or activities are not covered by an agreementinvolving the University.7.2The University, therefore, strictly prohibits staff from entering into work-relatedconsultancy arrangements with outside agencies without approval from theirHead of College.7.3Staff involved in non-work related consultancy must not use theUniversity of Glasgow name to endorse this activity without prior writtenapproval from the Head of the Research Support Office.7.4Standard Terms & Conditions: The University has adopted standardcontract terms & conditions and recommends that these are used 4. The Headof College can authorise and sign off any work that is undertaken under theUniversity’s standard terms. A copy of the finalised contract must beforwarded to the Research Support Office, together with the signed CPF. TheResearch Support Office will record the information on the research systemand arrange for the appropriate information to be sent to finance office toenable invoice(s) to be raised.7.5Non-Standard Terms & Conditions: The Research Support Office must beinvolved in the contract negotiations and will advise the Head of College onkey issues arising from the terms of the contract. Where these issues areconsidered problematic, approval of the Head of College will be sought prior3Please note: This costing/pricing policy may be subject to major revision following implementation ofnew corporate tax laws.4A template consultancy agreement is available from the Research Support Office on request.University of Glasgow Consultancy Policy v1.3 (17 June 2014)3/5
to final sign-off by an authorised individual from the Research Support Office.A fully signed CPF will also be required.7.6Staff are recommended to involve the Research Support Office in theprocessing of consultancy as early as possible so that any issues with thecontract can be highlighted and, where possible, either resolved or mitigated.8.8.1Recording activityAll staff are required to record their consultancy activity with the ResearchSupport Office.8.2Original copies of the contracts and CPF must be forwarded to the ResearchSupport Office for the University records and for processing to the FinanceOffice.9.9.1Fee WaiversThe Inland Revenue requires that any fee waivers are decided before theproposal has final approval. No fees will be waived without a completed feewaiver form which must be returned to the Research Support Office with thesigned CPF.9.2Fee waivers are credited to a College reserve account and must be usedwithin one year of receipt. Balances remaining after twelve months in thereserve account will be transferred to College general funds unless there is aspecified and agreed reason for rolling them over to the following year.9.3More details about how fee waiver income can be accessed within theUniversity can be found on the Management Accounting webpages. 51010.1Tax and National InsuranceThe finance office will ensure that both employers and employees costs areremitted to the Inland Revenue. The statutory deductions for income tax andnational insurance will be made, and staff will receive the net amount.5Information on waived fees can be found on the Management Accounting webpage en.126709University of Glasgow Consultancy Policy v1.3 (17 June 2014)4/5
Appendix: Process map of the procedures outlined in the policy documentConsultancy proposalHead of College*Manage viaConsultancy ContractNOUse of GU resourcesCosted via CPFStandard T&CsYESManage via ServiceContractCosted via PAFYESSign off by Head ofCollege*NOContract negotiationsby RSOSign off by Head ofCollegeFinal paperwork toRSO*The Head of College may delegate authority to the Head of School or Research InstituteDirector. Staf f must ensure they are aware of local arrangements.University of Glasgow Consultancy Policy v1.3 (17 June 2014)5/5
consultancy even if the actions or activities are not covered by an agreement involving the University. 7.2 The University, therefore, strictly prohibits staff from entering into work-related consultancy arrangements with outs
