Guidelines for a Consultancy Agreement.

(This document is intended as a guide only, CQU Consultancy Policy is to be read and followed in
all circumstances).

A new Policy has been written and is now available on the Web.
The Old pre-numbered Consultancy Forms are no longer to be used.
To access this Policy and obtain Application Forms go to:
CQU Web Page
o Staff Information
o Policy & Procedures
o Staff Manual
o Consultancy Policy
Frequently asked questions.
Policy on the calculations of the costing and of the pricing of
externally funded consultancy activities.
Application Form.

Externally funded consultancy

o Consultancy occurs where:
The project involves buying the skills and expertise (preexisting know-how) of University Staff and equipment to work
on a specified project.
The sponsor would expect to own the intellectual property
(advice) arising from the paid consultancy and would also
expect complete confidentiality on the part of the University.

Type of consultancy
o Private consultancies No University resources used. (eg.Chemistry
lecturer consulting on his private life interest in Model Trains)
o Official University Consultancies University name, services, space
facilities, equipment and paid work-time. (eg. Chemistry lecturer
consulting to analyse various liquids or solids using knowledge from
professional life at the University)

Approval
o Permission for staff members to undertake consultancies must be
obtained from the Vice-Chancellor or designated University Officer
prior to undertaking the consultancy activities. Normal maximum
period during which a full-time member of staff may be involved is up
to 52 days per calendar year.
o Terms and Conditions are to be set out in formally agreed contracts
between the University and the Client.
o Complete application form with appropriate approvals/authorisation
from Head of School and/or Dean and/or Pro-Vice-Chancellor.

Costing and Charging

o Full cost including profit margin
o Only the Vice-Chancellor can approve a consultancy where the
University has to subsidise the work being undertaken or charging of a
premium.
o Margin minimum 10% of the salary and on-costs of the staff
member(s) directly performing the consultancy activity.
o All instances of In-kind contributions are to be referred to FSD Tax
and Insurance Accountant for the correct GST and accounting
treatment.
o The principles of the Competitive Neutrality Policy and The Trade
Practices Act must not be compromised.

Accounting, Insurance and Expenditure

o CQU Insurance Policy covers consultancy approved under the banner
of CQU and CQU is the legal entity, not the individual. All financial
transactions must be conducted through CQU and any such funds
become public funds.
o All invoices for consultancy work are to be raised on an official Tax
Invoice, issued by FSD.
o Distribution (Infrastructure component) of income is split between
Central Funds and relevant Faculty based on overall FTE% of General
and Academic Staff currently 65/35.
o Distribution of the minimum 10% profit margin is split:
2% - Central Funds.
2% - School from which consultant originated.
5% - To Consultant. This will be paid to the staff member
(consultant) without limitation, either in the form of a paid
benefit via payroll or applied to a University held Consultancy
Project.
Profit margin greater than 10% - To Consultant. This will be
paid to the staff member (consultant) without limitation, either
in the form of a paid benefit via payroll or applied to a
University held Consultancy Project. Staff are encouraged to
seek independent financial advice in relation to questions as to
the payment of this benefit.
A staff member undertaking a consulting activity, where that
activity produces a benefit that can be payable to the individual
staff member, can elect to have this benefit applied directly to
the Faculty, School or Centre. In which case the staff member
has waived any right to have this benefit remitted to them. This
election must be made at the beginning of each consultancy
project and cannot be revoked for the life of the project.

Reporting
o University Staff members who act as Consultants are required to
provide a written statement annually by February of the following year,
outlining the paid consultancies undertaken and certifying compliance
with relevant University Policies, including outside work rules, ethical
standards and charging policies. These are submitted to the Pro-ViceChancellor.

 Other Points to Note:

o Approval Number
Each Consultancy is to be allocated an Approval Number.
Accounts Receivable will allocate these numbers in blocks to
each area. It will be the Finance Officers responsibility to
maintain a register and allocate the next number from the
register to each consultancy application.
o Application Form (Form currently available on the Web has been
amended)
The last two pages Element D - Funds Dispersal have been
replaced.
The Customer Consent Form to be used is not included, any
other documentation eg Purchase Order, should accompany this
form.

These two forms are attached at the end of this document

and are to be used in place of those on the Web.
o Peoplesoft Fund Code
FF Consulting for income received and expenditure
incurred that relates to a Consultancy Agreement. No other
fund should be used.

ELEMENT D FUNDS DISPERSAL

Approval Number

Distribution of minimum revenue received from externally funded consultancy activities as shown at H in
element B calculations.
A Total Direct Payroll costs =(Subtotal 2, item A) = $
CREDIT
Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
13032
13032
13032

Amount

B Total Direct costs = B = $ .

Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
13032
13032
13032

CREDIT
Amount

C Direct costs specific services = C = $ ..

Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
13032
13032
13032

CREDIT
Amount

D Major Capital Items = D = $ .

Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
13032
13032
13032

CREDIT
Amount

E Infrastructure component non-laboratory

Allocation to Central funds = 0.375 x A = $
Allocation to Admin
= 0.375 x A = $ .
Allocation to Faculty/School = 0.40 x A = $
Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
CT
CT
F
000
13032
FI
FI
F
000
13032
13032
13032
Infrastructure component laboratory
Allocation to Central funds = 0.375 x A = $ .
Allocation to Admin
= 0.375 x A = $.
Allocation to Faculty/School = 0.50 x A = $ .
Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
CT
CT
F
000
13032
FI
FI
F
000
13032
13032
13032

CREDIT
Amount

CREDIT
Amount

Distribution of minimum profit of 10% (Sub-total 3, item A) = $ .

12.5% to Central Funds = $ ..
12.5% to Admin Funds = $
25% to Faculty/School = $ .
50% to Consultants
$ .
CREDIT
Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
Amount
CT
CT
F
000
13032
FI
FI
F
000
13032
13032
13032
Distribution of remaining profit to consultant
Sub Ledger Cost Centre Fund Project Posting Code
Sibling Code
13032
13032
13032

CREDIT
Amount

APPROVAL NUMBER: ________

CUSTOMER CONSENT
(to be completed by Department/Faculty, signed and verified by Customer)
Requested by:

Customers Name

__________________________________

Address

__________________________________
__________________________________
__________________________________
______________ Postcode ___________

For Central Queensland University to complete the following consultative work (brief
description):
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________

CQU Reference:

Staff Member/s

_______________________________
_______________________________

Department/Faculty _______________________________
Commencement Date: __________

Estimated Completion Date: ________

TOTAL AMOUNT NOT EXCEED: $________

SIGNED: __________________________________
(Customers Signature)

DATED: ________

Subject to approval by the University hereby agrees to complete the work as detailed
above.
SIGNED: __________________________________
(Head of Department/Faculty)

DATED: ________