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Budgetary Planning & Control

Finance Division

The Financial Procedures Manual

Chapter 2


Issued: June 2008 Revised: November 2015

Also available on-line at: http://finance.internal.admin.cam.ac.uk/policy-and-procedures/financial-procedures/chapter-2-budgetary-planning-control


Finance Division 2 Version 1.1 November 2015

Version History

Version

Number

Issue Date Comments

1.1 Nov-15 Web links updated and references to ROO, EM and X5


Contents

1. Introduction ............................................................................................. 4 1.1 How to use this guide ................................................................................................ 4 1.2 What is a budget? ...................................................................................................... 4 1.3 Why do we set budgets? ........................................................................................... 5 1.4 What do we mean by budgetary control? .................................................................. 5 1.5 The role of the Finance Manager in budgetary planning and control ........................ 6 1.6 Departmental responsibilities for budgetary planning and control ............................ 6 1.7 Administrators’ checklist ............................................................................................ 7

2. Budgetary planning .............................................................................. 10 2.1 Using budgets to monitor the University income and expenditure .......................... 10 2.2 What budgets do we set in the University? ............................................................. 10 2.3 How and when does the University set its budget? ................................................. 12 2.4 What activities do not have budgets in UFS? .......................................................... 14 2.5 How to budget for Trust Funds? .............................................................................. 14 2.6 How to budget for other non-Chest activities such as Trading? .............................. 15 2.7 Budget phasing ........................................................................................................ 16 2.8 Budgeting for overhead recovery income ................................................................ 16 2.9 What transaction codes are used for budgets in UFS ............................................. 19 2.10 What is the difference between budgeting and forecasting?................................... 19 2.11 What happens to budgets at the end of the financial year? .................................... 20

3. Monitoring and Controlling Budgets .................................................. 21 3.1 Introduction .............................................................................................................. 21 3.2 What is a variance? ................................................................................................. 21 3.3 Types of variances ................................................................................................... 22 3.4 The Financial Summary Report ............................................................................... 22 3.5 Other ways to monitor expenditure against a specific UFS budget ........................ 26 3.6 What to do if a budget is overspent ......................................................................... 27 3.7 Transfer codes ......................................................................................................... 27 3.8 Commitment accounting .......................................................................................... 27 3.9 Additional tools that can be used ............................................................................. 28 3.10 Budget Virements ................................................................................................ 28 3.11 Research grant reports/queries ............................................................................... 29

4. Monitoring and Controlling Expenditure Against Income 4.1 Introduction .............................................................................................................. 31 4.2 Which reports compare expenditure to available income ........................................ 31 4.3 The importance of matching income to expenditure ............................................... 34 4.4 Spending surpluses ................................................................................................. 34

Appendices ............................................................................................... 35 Appendix A The Financial Summary Report~ Source of Funds ................................. 36 Appendix C The Financial Summary Report ~ Long Source of Funds....................... 38 Appendix D Long Cost Centre Summary Report ........................................................ 39 Appendix F Budget Report – Comparing to Actual (UFS) ......................................... 40 Appendix E Wide Source of Funds Summary Report ................................................ 40 Appendix G The Trial Balance –Detail Report .......................................................... 42 Appendix H Transaction Code Balance Report .......................................................... 43 Appendix I Accounts Analysis – Transaction Detail 3 Report .................................... 44 Appendix J Trust Fund Statement .............................................................................. 45

https://uas.admin.cam.ac.uk/offices/finance/training/FPM/02%20-%20Budgets/Budgetary%20Planning%20and%20Control%20vs1.1%20Final.doc#_Toc435717506






1. Introduction

1.1 How to use this guide This chapter of the Financial Procedures Manual is split into four sections and an appendix.

Section 1 Introduction

This gives you a general overview of what is meant by the terms Budgetary Planning and Control and their importance. It also sets out the responsibilities of both Finance Managers and departments for budgetary planning and control.

Section 2 Budgetary planning

This section explains how budgets are used within the University. It details those activities for which budgets are formally created and monitored in UFS. It also provides guidance on the main issues that should be considered when preparing a budget for any activity.

Section 3 Monitoring and controlling budgets

This section gives guidance in the techniques required and reports available to enable interpretation of actual results against budget at a point in time.

Section 4 Monitoring and controlling expenditure against income

The University does not set formal budgets for all activities. This section gives guidance on the techniques required and reports available to enable interpretation of actual expenditure against available income at a point in time.

Appendix A glossary of terms and examples of commonly used UFS

reports

1.2 What is a budget? A textbook definition of a budget is:

The Chartered Institute of Management Accountants’ defines a budget as

“A quantitive statement for a defined period of time, which may include planned revenues, assets, liabilities and cash flows. A budget provides a focus for the

organisation, aids the co-ordination of activities and facilitates control.”



In practice a budget is a financial representation of planned activity for a given period of time. The basic principle is to compare the cost of the planned activity to the expected income the activity will generate and establish whether there will be a surplus (income exceeds cost) or deficit (cost exceeds income) at the end of the period. A surplus will mean that reserves have increased and a deficit leads to reduction in reserves. The University is a not for profit organisation so the aim, unlike a business, is not to make surpluses or ‘profits’. However we need to ensure that total income and total expenditure are broadly in line with each other.

1.3 Why do we set budgets?

The prime reason why the University sets budgets is to ensure that it is operating sustainably. In this context sustainability means that in the medium term total planned expenditure by the University should not exceed its expected income. This is a formal requirement placed on the University by the Higher Education Funding Council for England (HEFCE). This requirement explicitly allows the University to run deficits (i.e. expenditure is more than income) on some activities or in some years, provided these deficits are counterbalanced by surpluses (expenditure is less than income) on other activities or over other years. Setting budgets also facilitates the equitable and transparent sharing of resources or funds between activities and individual departments. At a strategic level setting budgets ensures that available resources are used to fund current activities and to invest in new areas of activity. At an operational level a budget tells you how much money is available whether it is the Chest budget for pay or non-pay expenditure for a year or what a sponsor has agreed to fund a research programme. Finally setting budgets provides one method for monitoring actual versus planned activity. As a budget is a financial representation of planned activity, regular comparison of actual expenditure to planned expenditure, will provide a measure of progress.

1.4 What do we mean by budgetary control?

Budgetary control is financial jargon for managing income and expenditure. In practice it means regularly comparing actual income or expenditure to planned income or expenditure to identify whether or not corrective action is required. For example most University departments are given annual Chest budgets for general equipment. By regularly comparing actual expenditure on this budget to planned expenditure a department will be aware of whether a particular item can be afforded. If the account is in deficit a department will need to identify an alternative source of funds (e.g. departmental reserves). This process of monitoring expenditure and taking appropriate action is known as budgetary control.



1.5 The role of the Finance Manager in budgetary planning and control

The University operates an annual Planning Round, one aspect of which is to collate financial forecasts from institutions (deadline 1 December) covering all funding streams. For Chest activity the financial forecast relating to the subsequent financial year also forms the basis for determining the Chest allocation and budget. Finance Managers are generally responsible for collating and submitting institutional financial forecasts. For some this process operates top-down (with a forecast prepared for a group of institutions/School as a whole), for others the approach is bottom-up (institutional level forecasts prepared that then need to be consolidated for the group/School). Your Finance Manager can advise which approach is adopted for your institution/School. Finance Managers are also responsible for providing the details for the Chest budget by institution, subject to approval by the relevant body (e.g. School Council), which are subsequently published in the thin Blue Book. Finance Managers involvement in budgetary control includes general oversight by reviewing financial reports at least monthly for their areas of responsibility and raising issues with the local institutions as appropriate. Finance Managers can advise on producing non-Chest budgets, albeit Research Operations Office (ROO) deal with Research grants and contracts, and monitoring against these. Finance Manager involvement in budgetary control for non-Chest activity will vary depending on the policies adopted by Schools/Institutions. The monthly review of financial reports means Finance Managers monitor non-Chest activity regularly.

1.6 Departmental responsibilities for budgetary planning and control

The amount of input required from a Department for Chest budgetary planning and control can vary by School/institution and whether the budget is devolved fully. It is important that Departments understand what they have responsibility for within their Chest budgets – if in doubt contact your Finance Manager. Traditionally all non-pay Chest budgets are fully devolved – all institutions are responsible for controlling this activity within budget. Where a bottom up approach to planning is adopted, departments will be more involved in the planning process. Areas where the detailed knowledge of Department Administrators will add value to the planning exercise include:

Details of the Finance Managers responsible for each school /area are available on the Finance Division website

http://finance.internal.admin.cam.ac.uk/policy-and-procedures/financial-

procedures/advice-schools



Checking the accuracy of information on Chest-funded posts including ratifying any year on year changes. Budgets are built up on a post by post basis and it is crucial that this information is correct.

Communicating the department’s plan for any changes in staff profile.

Communicating the department’s plan for making any required savings.

Communicating changes in student numbers, new courses being introduced, premium fees etc. that could impact on the RAM income of the department.

Input to the research forecasts. By providing valuable insights into trends in volume growth; impact of large grants ending and replacement funding applied for; and/ or changes in sponsor mix and hence, the forecast of overhead/ non direct cost recovery, which again impacts on Chest income to the department.

All Departments have a responsibility for budgetary planning and control over non-Chest areas of activity, no matter how large or small that activity is. This includes reviewing resources as a whole and, when needed, identifying areas generating surpluses that can support/subsidise areas in deficit. Dependent on the level of devolvement to Institution level, the RMC and/or School office may need to approve the filling of Chest funded posts and use of temporary staff where vacancies exist. Hence, departments may not perceive themselves as responsible for over spends on Chest stipends and wages except in as much as these relate to the expenditure on outside lecturers and on overtime. It is likely therefore that overspends on stipends and wages will be followed up by Finance Advisers/Managers. Department Administrators are responsible for ensuring that the Chest non-pay budget is not exceeded. Monitoring should be done on a monthly basis and deficits should not be allowed to accumulate all year before being cleared at year end as this creates problems at University level when forecasting the likely year end position. Other Chest budgets that should be monitored may include unpaid leave of absence, vacation study grants, the annual equipment grant and non-recurrent grants (see checklist in 1.7 below) For research grants and contracts, it is likely that individual PIs will be responsible for monitoring expenditure on their grants but the Department Administrator or Accounts section may then be responsible for sending the PIs the appropriate reports.

1.7 Administrators’ checklist

Administrators should check that they know the answers to the following:

# Task Advice /resources

1. Do I have to produce anything as part of the Planning Round? If so, what and by when?

Your Finance Manager

2. Do I know what parts of my department’s Chest budget I am responsible for?

3. Do I know the major non-Chest financial areas within my department?

Monthly financial reports provide an indication and your Finance Manager



can advise.

4. Do I have budgets for the streams of non-Chest activity in my department? Note: the Planning Round provides assumptions for future inflation and Cambridge University Endowment Fund (CUEF) distribution rates – available from your Finance Manager.

Your Finance Manager can advise, assist and provide templates having discussed requirements.

5. Where PIs expect my support in monitoring their grants, have they copied me in on grant awards and contracts details?

ROO can provide details if necessary.

6. Do I review financial reports regularly? It is best practice to do this at least monthly. Some examples of areas to look at include:

Stipends: o Has the Other Teaching budget been exceeded? o Has the budget for unpaid leave of absence been

transferred to the unpaid leave of absence account for all relevant academic staff?

Wages: has the overtime budget been exceeded?

Annual equipment grant: if the budget has been exceeded, are there sufficient reserves from previous years to cover the shortfall?

Non recurrent grants: is the activity for which funding was given ongoing? If not are there funds that should be returned or a deficit that needs to be cleared?

Unpaid leave of absence funds: are YTD budget and reserves sufficient to cover current expenditure? If not, how will the shortfall be funded?

Dual funding support target: is overhead income sufficient to meet the target? If the department does not expect to have sufficient overhead income to meet the annual target by year end then how will the shortfall be covered?

Trust funds: if expenditure exceeds income, check whether this is because spendable capital is being used to fund expenditure. If not, how will this deficit be addressed at year end?

Trading - if expenditure exceeds income, are there sufficient reserves to cover the shortfall? If not, how will the shortfall be funded? This may need to be done on a cost centre by cost centre basis as otherwise trading activities in surplus could be subsidising those in deficit.

Donations accounts - if expenditure exceeds income, are there sufficient reserves to cover the shortfall? If not, how will the shortfall be funded?

Are there sufficient resources to cover the cost (plus associated FWP overheads if appropriate) of all posts funded on non-Chest money?

Finance Manager/ Adviser



If you are new and/or require assistance, contact your Finance Manager http://finance.internal.admin.cam.ac.uk/departmental-contacts



2. Budgetary planning

2.1 Using budgets to monitor the University income and expenditure It has already been established that budgets are an important method in which to monitor and control actual versus planned activity. However, in order to carry this out effectively it is important to spread the budget across the months of the financial year in a realistic manner. This is known as ‘Phasing’ the budget. Appropriate phasing of the budget allows for meaningful comparison between actual and planned activity.

2.2 What budgets do we set in the University?

Currently, the University formally creates budgets and monitors them via the Cambridge University Financial System (UFS) for three areas of activity;

Chest income and expenditure

Research grants and contracts

Buildings Departments are free to establish local budgets for any activity but at present there is no facility to record these budgets in CUFS. 2.2.1 Chest budgets

Most departments receive some central funding from the University. It is this central funding that is known as the ‘Chest’ budget or allocation. This is a department’s share of income collectively earned by the University as detailed below:

Block grants for Teaching and Research from HEFCE and Teachers Development Agency (TDA)

Fees paid by students

Investment income from the University’s general Trust Funds

Other Income which includes the profit transfer from Cambridge Assessment (formerly ‘UCLES’)

The Chest share of research overheads Section 2.3 of this chapter details the process by which departmental Chest budgets or allocations are set each year. In general Chest budgets relate to one financial year and funds are distributed annually, at the beginning of the University’s financial year. The exception to this is Non-recurrent Grants which are awarded throughout the year on a needs basis. The table overleaf details those sources of funds (SoF) for which budgets are created in the General Ledger module of UFS.



SoF code SoF Name Main Usage

AAAA Chest Non-Pay Recurrent funding for consumables and other non-pay items

ABAA Chest Stipends Recurrent funding for the pay costs of academic and academic-related staff

ACAA Chest Wages Recurrent funding for the pay costs of assistant staff

A*** Others Special Expenditure Specific to Institution

AHAA Equipment Grants General departmental equipment

A*** Non-recurrent grants As specified in the letter awarding the grant

EBAA Unpaid Leave of Absence Savings

Budget equals saving in pay costs made by a Chest-funded member of staff taking Unpaid Leave of Absence e.g. an academic who is granted a Royal Society Fellowship

FABM Incentive payments for non-professorial staff

Recruitment incentive payments for non-professorial staff

FACF/FACE Vacation Study Grants Expenditure on field trips and vacation study.

Budgets in UFS can be either positive or negative. A Chest expenditure allocation is entered into UFS as a positive budget whilst an income allocation or expected saving would be entered as a negative budget.

2.2.2 Research grant budgets

The budget for a research grant or contract is set when the grant or contract is awarded. All applications for research grants and contracts must now be costed on ‘X5’ on a Full Economic Cost (fEC) basis.

Budgets for Research Grants are input into the Grants module of UFS by ROO for the whole life of the grant, generally extending over several years. More information on the setting, monitoring and controlling of research grant budgets can be found in the Research Grant Chapter of the Financial Procedures Manual (chapter 19).

2.2.3 Budgeting for buildings

In the University the majority of buildings related expenditure is managed by the Estates Management (EM) including routine running costs, refurbishment and construction of new buildings. Budgets for these activities are managed by EM directly. The budget for the routine running costs of the University’s

More information on the costing process is available from ROO or online at http://www.research-operations.admin.cam.ac.uk/costing-

and-pricing-research-proposal



estate is set as part of the annual Planning Round, more details of which are given in section 2.3.

Major investment, such as refurbishment or the construction of new buildings, has a separate approval process. Budgets will be prepared by EMBS or contractors employed by them and these budgets will be submitted to the Buildings sub-committee and Planning and Resources Committee (PRC) for approval. As part of this process the expected contribution from the department to the cost of refurbishment or new building will be agreed. In general this will not be funded from a department’s or Institution’s Chest budget but from sources such as Donations or government funding such as SRIF/CIF.

2.3 How and when does the University set its budget?

Every three years Schools and all other University Institutions are required to produce Strategic Plans. These plans set the academic priorities and objectives for the Institution for the next five years and explain how they are to be implemented. The Strategic Plans are accompanied by detailed financial forecasts. Although the Strategic Plans are generally only updated every three years, the financial forecasts are revisited annually in the Planning Round. The financial forecasts for Schools and all other Institutions are consolidated together to provide a University level financial forecast which forms part of the Budget Report (formerly called the Allocations Report). The second year of this forecast includes the Allocation of Chest Expenditure to Schools and Institutions. The first year is a revised estimate of activity in the current year. To meet HEFCE’s requirement that the University operates sustainably, the Budget Report is not just a consolidation of Schools’ and other Institutions’ financial forecast submissions. This is because financial forecasts at this level represent their Institution’s aspirations. The Resource Management Committee (RMC) and Planning & Resources Committee (PRC) will consider the University’s total expenditure plans in the context of its estimated future income and may cap or limit some (or all) Institutional plans. It is this iterative review process which generates the final numbers in the Budget Report. The timetable overleaf shows the main stages of the Planning Round.



Summary Timetable for Planning Round and Allocation Report

Month/Year Activity

Jun / Jul Formal planning guidance issued by the Planning & Resource Allocation Office (PRAO).

Jul - Dec Finance Managers prepare the financial forecasts for Schools and other Institutions i.e. they cost the Institution’s Strategic Plans.

The involvement of departmental finance staff in this process is determined locally by the Institution.

The financial forecast is reviewed and approved by the appropriate authority, such as the Chair of the Council of the School; or the Head of the Institution.

The financial forecasts are submitted to PRAO.

Sep / Oct Actual income and expenditure for the last financial year is analysed by Financial Planning & Analysis (FP&A) into the same activity categories as used in planning.

1 Dec

Submitted to PRAO

Financial forecasts.

Annual reports

Student number forecasts

Every three years - Strategic Plans.

Dec FP&A

Review financial forecasts submitted.

Consolidate individual forecasts into a University level picture.

Create University wide analyses of income and expenditure. PRAO

Review Strategic Plans.

Review and consolidate forecast of non-financial data e.g. student numbers.

Jan / Feb Strategic Plans are reviewed.

For Schools these meetings are chaired by PVC Planning and Resources.

For other Institutions the meeting will be chaired by an appropriate person (e.g. the Fitzwilliam Strategic Plan review meeting is chaired by Chair of the School of Arts & Humanities).

Feb / Mar RMC/PRC

Considers Plans

Agrees provisional allocations to Schools, other Institutions and Administered Funds.

Apr General Board and Finance Committee consider Plans and Allocations.

May Council considers Plans and Allocations.

May / Jun Budget Report published in The Reporter.

Jun Budget Report graced.

Jul / Aug Departmental budgets produced by Finance Managers and passed to FP&A.

Aug Departmental budgets uploaded into UFS by FP&A.



2.4 What activities do not have budgets in UFS?

The table below details those activities and sources of funds for which budgets are not created in UFS. These activities are monitored by comparing Actual expenditure to Actual income.

SoF Code SoF Name Main Usage

0*** Balance Sheet Petty cash, key deposits, money on deposit, Debtors, Creditors.

B*** Funded from External Sources

Recoverable costs and related income.

C*** Funded from University Sources

This SoF is used for historic reasons.

EA** to EE** and F***

Specific Reserves Monies are given for a specific purpose. Income cannot be moved from these SoFs.

EF00 to EZZZ General Donations Expenditure can be charged here but income cannot be moved.

GAAA External Trading For trading with customers outside the University.

GAAB Internal Trading Trading between institutions within Cambridge University.

GB** Other Trading Income & RTSG

Research Training Support Grants, college support.

H*** Donations Donations with specific criteria for their use.

J*** HEFCE Initiatives Income from HEFCE for specific purposes e.g. capital projects.

K - Permanent Trust Funds Permanent These have to be legally established. The capital funds cannot be spent, only the income earned.

K - Spendable Trust Funds Spendable Both the capital and the income on these funds are available to spend but have to be spent specifically as the trust fund states.

M*** Research All research grant activity is detailed in the Grants module and then summarised in the GL using the M source of funds range.

P*** Buildings Used and controlled by EM.

Z*** Depreciation Processed centrally by the Finance Division, little impact on departmental accounts.

2.5 How to budget for Trust Funds?

All trust funds are legally created and have their own deed that details the rules and regulations for the particular fund. The primary consideration when budgeting for a trust fund is that expenditure is limited by funds available, that is income earned in the year plus reserves brought forward from previous years.



The income available to a trust fund in the year is the sum of the monthly dividends from capital invested in the Cambridge University Endowment Fund (CUEF) plus interest earned from monies on deposit. Each year, as part of the annual Planning Round, an estimate of dividend payable per unit by the CUEF is prepared by the Finance Division. Your Finance Manager or the Trust Funds Treasury & Investments Team in the Finance Division, can provide you with this information if you are trying to calculate the expected income for a year.

It is important when calculating what income is available to fund planned expenditure on a trust fund, to distinguish between Permanent Capital and Spendable Capital. Permanent Capital, recorded on cost centre ZZYA, cannot be spent. Spendable Capital, recorded on cost centre ZZYB, can be spent and can thus be used to supplement income earned in a year if this is insufficient to cover the cost of planned activity.

If the rules of the trust fund permit it, salaries charged to a trust fund will incur an overhead. In general, trust funds established after 1995 will pay an overhead of 20% (30% for some funds established after 2007) of the gross cost of the stipend charged to the Fund. However, for professors, the overhead will be calculated on the gross cost of spine point 68 irrespective of the actual spine point of the professor.

Therefore the process for preparing a trust fund budget is as follows:

Is planned expenditure permitted by trust fund?

Calculate the cost of planned expenditure

Allow for overheads on pay if applicable

Estimate annual income from fund

Compare income available to planned expenditure to ensure funds available are sufficient.

Section 4 provides guidance on how to monitor and control expenditure where there is no formal budget in UFS.

2.6 How to budget for other non-Chest activities such as Trading?

The primary consideration when budgeting for a non-Chest activity is to ensure that expenditure does not exceed the funds available. Therefore the best place to start when budgeting for a non-Chest activity is to calculate the income available.

Therefore the process for preparing a non-Chest budget is as follows:

Calculate cost of planned expenditure

Allow for overheads on stipends if applicable. (Please refer to section 2.8 for more details).

Estimate annual income available

Compare income available to planned expenditure to ensure funds available are sufficient.

For more information on Trust Funds is available in Chapter 13: Trust Funds

http://finance.internal.admin.cam.ac.uk/policy-and-procedures/financial-procedures/chapter-13-trust-funds



Section 4 provides guidance on how to monitor and control expenditure where there is no formal budget in UFS.

2.7 Budget phasing

By budget phasing we mean how the budget has been split across the months of the financial year. Pay costs should take into account the timings of known University-wide uplifts and any others where practical. Non-pay costs should be phased according to the best information available which may include patterns of actual expenditure in previous years. Failure to phase budgets accurately prevents meaningful analysis at departmental, School and University level.

2.8 Budgeting for overhead recovery income

2.8.1 Trust fund overheads

In general, trust funds established after 1995 will pay an overhead of 20% (or 30% for some funds established after 2007) of the gross pay costs charged to the fund. This is normally indicated by the inclusion of the phrase “and associated indirect costs” within the regulations. Pay costs are those using transaction codes in the range AAAA-DZZZ. Any applicable overhead charge should be built into relevant budget calculations. The overhead rate when applied to professorial salary is calculated on the gross cost of spine point 68 irrespective of the actual spine point of the professor.

2.8.2 Finance Working Party (FWP) overheads

In general FWP overheads are charged on salary costs paid from donations accounts, special funds, external trading accounts and research overhead accounts. This overhead, charged at 30% of salary costs only (UFS transaction codes A - D), is to cover the infrastructure cost of the individuals employed. By infrastructure costs we mean a share of the cost of the building in which an individual works, the cost of equipment that they use and the costs of employment such as payroll and health and safety. Where a department considers that a particular item of expenditure should constitute an exception to this policy, they should raise the issue with their Finance Manager. Please note that we should not routinely exempt services provided to charities or other educational establishments from FWP Overheads on the grounds they are not for profit. These costs are real and do not constitute a ‘profit’. By not charging these overheads we are using our limited Chest funds to subsidise other organisations.



2.8.3 Research grant overheads

Research grant sponsors may allow overhead or non-direct cost recovery to be included when costing the budget for a research project. This is in recognition of the costs incurred in the department and centrally as a result of the research activity being carried out. As an incentive for Departments to apply for grant funding, a share of the cost recovered is credited to departments’ accounts. Consequently some departments may have access to substantial sums that can be used to finance capital projects or to fund staff long- or short-term. FWP overheads will be levied at 30% on all staff costs charged against these funds unless exemptions have been granted. As Financial Regulations do not permit these sources of funds to be in deficit, careful planning is necessary to ensure that overheads accounts are not over committed. Pre fEC grants Grants costed prior to September 2005 are referred to as pre-full economic costing, or pre-fEC or non-fEC grants. Prior to September 2005, no attempt was made to establish the full cost of carrying out a research project when costing it and overheads were generally calculated as a percentage of staff costs. EU funded grants were an exception; overhead recovery was calculated as a percentage of the total cost. The table below shows how the overhead is calculated and apportioned between the Chest and departments for pre-fEC grants. No overhead was permitted on fellowships or studentships.

Sponsor category Target recovery

Chest share

Dept share

Research Councils 46% 59% 41%

EU 20% all costs 66% 34%

Industry 70% 50% 50%

Overseas & Others 70% 50% 50%

Target Recovery rates are % of staff costs unless otherwise stated

For pre-fEC grants, department overhead income used to be posted to two sources of funds, namely

ECAA (Research Council funding)

EDAA (All other sponsors) However, from 1 August 2009 all departmental overhead income will be posted to just EDAA. All overhead income posted to EDAA is available for departments to spend, subject to established School policy. Pooled labour income may also be used in addition to overheads to meet the Dual Funding Support Target (DFST). Pooled labour can be included as a budget item where technical support is required. However, it would not be practical to specify what is required in terms of individual full time equivalents



(FTE) as the individuals concerned may be providing support to a number of research projects. FEC grants Grants costed from September 2005 have to be costed on a full economic cost basis using now the X5 tool. The full economic costing methodology allocates non-direct costs to a project on the basis of research staff FTE (excluding support staff) .There are separate cost allocation rates for:

Estate costs,

Infrastructure technicians and

Other indirect costs These rates are set by the University and updated annually. In addition the cost of the time of the Principal Investigator (PI) and co-investigators may also be charged to the grant. Few sponsors pay the full economic cost of a project, e.g. Research Councils pay 80% and Charities continue to pay direct costs only, so a discount is calculated which equals the unfunded amount.

Non-direct cost recovery funded = PI (and co-investigators’) costs + Indirect costs + Estate costs + Infrastructure technician costs – University discount

In some instances, e.g. where large equipment purchases or studentships form part of the grant costing calculation, sponsors will pay differing proportions of the full economic cost of a project. Calculation of the expected non direct cost recovery is therefore not straightforward. If the amount the sponsor is prepared to pay is insufficient to cover 100% direct costs, the department will have to make up the shortfall and the Head of Department will need to decide whether the grant application should go ahead.

Again non-direct cost recovery is split between the Chest and departments. The table below shows the Chest and department shares of the non-direct cost recovery in fEC grants. N.B. Fellowship grants do now attract non-direct costs for Research Council sponsors.

Sponsor category Chest share Dept share

Research Councils 6/7 1/7

Government 5/6 1/6

EU 66/100 34/100

Industry & others 11/14 3/14

The departmental share has been reduced compared with the pre-fEC position as the intention was that the Chest should benefit from the improved cost recovery and that the abolition of the Dual Funding Support Target (DFST) should be funded by reducing the department share of non direct cost recovery. Overall departments should continue to receive the same level of department overhead funding as in the past for a similar volume of research.



The department share of non-direct costs recovery is posted to a range of sources of funds (EZE0 to EZZB) as non direct cost recovery needs to be reported by sponsor type. To facilitate budgeting for use of these funds some Schools post transfers of all non-direct cost recovery to a single source of funds monthly, EZE0. Much Charity funding is eligible for Partnership Funding so that the University receives additional Quality Research (QA) funding based on the volume of eligible Charity funding. A proportion of this income (currently 6%) will be credited to ECBA and is available for department use in the same way as funds from overhead and non-direct cost recovery. However, FWP overheads will be levied on the use of the funds for staff costs.

2.9 What transaction codes are used for budgets in UFS

Budgets should be input to UFS on the same transaction codes to which actual expenditure will be coded, as far as possible, otherwise meaningful analysis of Actual versus Budget expenditure is jeopardised at departmental, School and University level.

The following is a summary listing.

Type of expenditure Source of funds

Budget transaction codes

Stipends ABAA Appropriate code for grade e.g. ‘ABAP’ for Professors

Wages ACAA Appropriate code for grade and job type e.g. ‘CBAF’ for grade 7 departmental technician

Appropriations in Aid ABAA AXXX

Vacancy Savings ABAA AXXA

ACAA CXXA

Other/Substitute Teaching ABAA BBAA

Non Pay AAAA Various as appropriate, EXZZ is used as a default

2.10 What is the difference between budgeting and forecasting?

A budget is the financial representation of a planning process, usually annual as in the University. It is finalised before the beginning of a financial year and actual income and expenditure are measured against it as a means of reviewing performance and controlling expenditure.



The University’s planning process considers not only the following year’s budget but projections for the 3 years beyond it. By planning this far ahead and revising those estimates every year we ensure the medium-term sustainability of our activities. Forecasting is a shorter-term activity, usually performed at regular intervals e.g. quarterly and limited to updating our view of the current year. It takes into account actual income or levels of expenditure and projects these forward to the end of the financial year. It provides useful information about expected current year out-turn so that corrective actions may be taken where appropriate. In addition, because forecasts are updated regularly, they often provide a more accurate guide to expenditure levels etc than a budget set before the financial year began. In turn, this may mean that a revised current year forecast is more appropriate than the original budget as a basis for future expenditure etc when setting the following year’s budget.

2.11 What happens to budgets at the end of the financial year?

Unlike most ‘for-profit’ organisations, funds allocated but unspent at the end of a financial year may in some cases (subject to rules) be carried forward in reserves for use in subsequent years. This allows departments and Schools the flexibility to plan activities and expenditure in the medium-term with confidence. The rules on how under-spends and over-spends against budget are treated at the year end are set centrally. Budgets are either devolved to the School/ Department/ Institution (unspent money is retained and carried forward in reserves by the institution) or are returned to the Chest. For all institutions Chest non-pay, source of funds AAAA, is fully devolved, so over- or under-spends against budget are carried forward to the next financial year. For Schools, departments in the UAS and the University Library, Chest Stipends and Wages are now devolved i.e. under-spends and over-spends are retained by the School/Institution. This exercise is performed by the central Financial Reporting Team after the July accounting period is closed to departments as part of the year-end process. Please note the Schools and the UAS have local policies, for their departments, on whether the department deals with over or under-spends on these sources of funds.



3. Monitoring and Controlling Budgets

3.1 Introduction

All departments are required to regularly monitor actual activity to planned activity and control their expenditure to ensure that it is in line with available funds. If required, appropriate corrective action should be taken to resolve significant differences between actual and planned activity. The financial jargon for this process of monitoring income and expenditure and taking corrective action is budgetary control. The methodology for monitoring activity differs depending on whether the activity is one for which a UFS budget is set.

a) If there is a UFS budget, departments should review the difference between actual and budgeted expenditure. Significant variances should be resolved.

b) If there is no UFS budget, departments should investigate significant surpluses or deficits. More detail on how to monitor and control activity where there is no budget is given in Section 4.

3.2 What is a variance?

A variance is the difference between actual and budgeted income and expenditure. Therefore, at the University, we only get variances in GL (General Ledger) on Chest funded activities. For all other sources of funds budgetary control will be implemented by recognising and resolving surpluses or deficits. 3.2.1 Adverse and Favourable Variances

An adverse variance is where actual income is less than budget, or actual expenditure is more than budget. This is the same as a deficit where expenditure exceeds the available income. A favourable variance is where actual income is more than budget, or actual expenditure is less than budget. This is the same as a surplus where expenditure is less than the available income.

3.2.2 When should I investigate and resolve a variance?

A variance (or surplus or deficit) should be investigated and resolved when it is significant. Unfortunately significance is not absolute, it does depend upon context. What is significant to a department may not be significant for the University which has a total annual expenditure in excess of £600m. For departments we recommend that variances of 10% or £1,000 are treated as significant. However departments are free to set their own limits higher or lower than this, and to have different limits for different types of income or expenditure.



3.3 Types of variances

There are four common reasons why actual expenditure or income will show a variance against the budget. 1. The cost is more (or less) than budgeted.

Budgets are prepared in advance and can only ever estimate income and expenditure. There are usually two reasons why cost varies from budget.

a) Price - item costs more or less than expected.

b) Volume - we buy more or less of items than expected. We generally try and allow for likely changes in price such as inflation, but budgets will never be 100% accurate. 2. Planned activity did not occur when expected.

When preparing a budget you have to decide when the activity will take place. If it happens at a different time from planned you will get a temporary variance which will generally resolve itself without action on your part. This type of variance is known as a timing variance. The only occasion when you may need to act on a timing variance is at year end. To reduce the occurrences of timing variances consideration should be given to how the budget is phased. Please refer to section 2.7 for more information on budget phasing. It is not always possible to predict with certainty the date activities will take place and often these are beyond the control of a budget holder. For example, a delivery of consumables may be delayed due to lack of stock at the wholesaler or delays with the recruitment process may delay the appointment of a new staff member. 3. Change in planned activity

The other main cause of variances is that the planned activity changes.

a) Planned activity does not occur e.g. a new staff member’s appointment is put on hold indefinitely.

b) Unplanned activity occurs, for example a staff member may fall ill for an extended period requiring the recruitment of temporary cover at additional cost.

4. Error/Omission The wrong combination of codes e.g. the wrong source of funds, a keying error at the payroll/invoice input stage or failure to make an adjustment in GL could all lead to an unexpected variance.

3.4 The Financial Summary Report

The primary purpose when monitoring expenditure against a UFS budget is to ensure that expenditure does not exceed that budget. The first problem is how to spot where expenditure has, or will, exceed the budget. The easiest way for departmental



administrators to spot budget problems is to regularly review the Financial Summary Report. This report is a summation of all the transaction data in UFS and provides an overview of the current financial position of the School/ Institution/Department. It highlights sources of funds i.e. areas of activity with significant variances from budget. The Financial Summary Report is produced monthly by the Reporting Team and distributed by email to agreed contacts (e.g. the Head of the School/ Institution/ Department and the Finance contact). 3.4.1 What does the Financial Summary Report show?

This section explains the main terms used in the Financial Summary Report. All references to a “column”, “row” or “cell” are with regards to the standard Source of Funds version of the report.

“Annual Budget” The annual budget figure is the total allocation to the source of funds for the whole year.

Columns 1-4 detail the Institution’s performance in the current financial year. “Budget YTD” (column 1) This column shows the year to date budget. In July, no matter how the budget has been phased, column 1 should equal the Annual Budget. “Income” (column 2) This report should show income recorded as a positive number. “Expenditure” (column 3) This report should show expenditure as a positive figure. “(Deficit)/Surplus” (column 4) This column shows the current “performance” of the institution within the source of funds. It is calculated as the YTD budget plus the income minus any expenditure. A negative figure indicates an overspend and a positive figure shows a favourable position.



Columns 5-9 detail the accumulated overall financial position of the source of funds, including cash in hand, money on deposit, amalgamated fund units and other investments. “(Overdrawn)/Cash in Hand” (Column 5) This column represents the current cash balance for each source of funds, excluding money on deposit (Column 6) and CUEF fund balances (column 7). This figure represents previous year end surpluses or deficits as well as the current year performance, which encompasses budget, income and expenditure. Negative or overdrawn balances in this column require investigation and resolution. “Total” (column 9) This column is the sum of Columns 5 (overdrawn/cash in hand), 6 (money on deposit), 7 (CUEF balances) and 8 (Other investments). This total is important because it represents the overall financial position for each source of funds. A negative figure in this column represents an overall negative resource and could be indicative of a worsening financial position.

Columns 10 and 11 are primarily there for reference. “Reconciliation to CUFS” (column 11)

This column adds together the balance sheet totals and the cash in hand position and should reconcile with the bottom line of the Budget compared to the Actual report for the source of funds. It is a memorandum column, primarily to ensure that the financial summary report reconciles with the data held on the CUFS system. Institutions will not routinely need to refer to this column.



“Grand Total” The Grand Total row is simply an addition of all the lines above it. “Net Total” This row best summarises an Institution’s financial position (excluding Research grants contracts buildings projects and depreciation).

3.4.2 How to read the Financial Summary Report. The first thing to check when reviewing this report is whether or not there are significant variances in column 9 as this summarises the financial position for the source of funds.

The issues to be considered are;

Is the financial position on the source of funds deteriorating or improving?

Is the variance due to a timing difference?

Is a deficit on one source of funds matched by a surplus against another because expenditure has not been coded against the relevant income?

All deficits in column 9 require investigation and resolution.

The next thing to check is the significant variances in column 4, which reports how the source of funds is doing in the current financial year. Two particular patterns of surplus/deficit are worthy of note.

A surplus in this column and a deficit in column 9 represents a current year surplus which is insufficient to cover a brought-forward deficit. This indicates that the financial position on the source of funds is probably improving and, that over a period of time, the account may return to surplus.

A deficit in this column and in column 9 indicates an account may be in trouble.

If the deficit in column 9 arises from an in-year deficit (column 4 is also negative) and particularly if column 5 was also negative, the account is in trouble. Whilst this does not mean that the activity on the account must cease, as not all activity has to be in surplus, it does require management. As the income is insufficient to cover the expenditure it will need to be subsidised from other financial resources available to the Institution.

3.4.3 Available versions of the Summary Report.

The prime version of this report is in source of funds order. This version has been approved by Council as the official document which must be signed off by Heads of the Institution as giving a true picture of the financial activity of their institution during the year. However, there are also other summary reports which provide slightly different management information that are available on request from the Reporting Team.



Report Name Appendix Description

Source of Funds Summary Report

A

It groups transactions by source of funds enabling the user the view the performance of an individual source of funds account.

The official document which must be signed off by Heads of the Institution as giving a true picture of the financial activity of their institution during the year.

Cost Centre Summary Report

B

Groups transactions by cost centres enabling users to view the balance on individual cost centre accounts.

“Long” Source of Funds Summary Report

C

Groups transactions by source of funds and then by cost centres within the source of funds. It illustrates how much of a contribution each cost centre is making towards the overall balance on the source of funds.

“Long” Cost Centre Summary Report

D

Groups transactions by cost centres and then by source of funds within the cost centres. It illustrates how much of a contribution each source of funds is making towards the overall balance on the cost centre.

“Wide” Source of Funds Summary Report

E

Groups transactions by source of funds and by transaction codes.

In particular it provides more information on income and expenditure categories

3.5 Other ways to monitor expenditure against a specific UFS budget

There is a standard UFS report available to Institutions and Departments to enable them to monitor expenditure against a UFS Budget. If this is not suitable then the UFS data can be exported in to Excel for further manipulation. 3.5.1 Budget Report Comparing to Actual (UFS)

This is the only standard UFS report which compares actual expenditure to budget. The Institution can select certain parameters (Source of Funds, Cost Centre and Transaction Code) when the report is running, allowing the user to focus on a particular area of interest. The report can be run at any time during the month. The report shows

Current financial year expenditure. (There should be no income on any Chest source of funds).

Annual, year-to-date and monthly budget.

Overall variance. See Appendix F for an example.



3.5.2 Exporting UFS data to Excel

Running a query or a report in UFS allows the user to extract specified information from the financial system in a standard format. However, the standard formats may not analyse the data in a way that assists a School/Institution/Department to monitor its income and expenditure. At present the alternative is to extract UFS data into Excel. Once in Excel the data can then be manipulated into any desired format. Instructions and training on how to export UFS data to Excel is available from the Finance Division Training Team.

3.6 What to do if a budget is overspent

If a budget is overspent the first thing to do is investigate the reasons for the over-spend. If the over-spend is the consequence solely of a timing difference then no immediate action is likely to be required. All other over-spends will need to be resolved by identifying alternative sources of income/funds that could be used to cover the over-spend. Expenditure should then be transferred to the alternate source(s) to fix the over-spend.

3.7 Transfer codes

When transferring costs between sources of funds, it is recommended that the transfer should use the original transaction code wherever possible. However should this not be practical then the generic transfer code of EZXX can be used, but must be used on both the debit and credit side of the journal. It is much more unusual to transfer income, indeed this is not to be done for certain sources of funds. There is a general transfer code, LXBB, for exceptional circumstances.

3.8 Commitment accounting

A commitment is an agreement or a pledge to assume a financial obligation at a future date e.g. the funds that we are committing to spend with a supplier when we send them a purchase order. UFS is a commitment accounting system. This means that details of any orders placed using the Purchasing module (or iProcurement) are recognised by the system and show as costs against the relevant source of funds (or research grant) even before an invoice is received. This helps to ensure that obligations against funds are

See their Finance Training’s ‘How to Excel with CUFS’ programme http://finance.internal.admin.cam.ac.uk/training/training-manuals

Further details are provided in FPM Chapter 3: Chart of Accounts and in Best Practice Guide No. 3

Both are available from the Finance Division web pages.



shown on the system as soon as possible, thereby reducing the exposure to spending funds more than once. In addition to the reports detailed in this chapter there is also an on-line Funds Available Enquiry within UFS that shows at any point in time the budget, actual expenditure, commitments and thus funds left on any account (or certain groups of cost centres).

3.9 Additional tools that can be used

Where finances can be managed using UFS this is the most efficient way. However there may be times when off-line systems can add further detail/clarity. For example, trust fund managers may choose to record a simple budget for the fund on an Excel template for the upcoming year: Finance Managers/Advisers can assist in providing templates. If a project is to be funded from multiple sources, again an Excel spreadsheet may be used to summarise the various income streams anticipated to match these against a budget for the project. Where Excel (or other off-line) details exist these should be compared and reconciled regularly to details held on UFS as part of budgetary monitoring and control.

3.10 Budget Virements

In general Chest budgets are set at the beginning of the financial year. It is the responsibility of the Finance Manger to organise the upload of departmental budgets, as detailed in the Blue Book, into UFS. During the financial year it is possible to vire (or transfer) budgets. There are three main categories of budget virement.

For further details please see the reference guide on the CUFS home page

http://ufs.admin.cam.ac.uk/r12reference/gl/gl_fundsavail.pdf



Grant of additional resources to a department from a central University reserve.

Typical examples are non-recurrent grants or grants from the Strategic Planning Reserve Fund.

Grant of additional resources to a department from a School reserve.

For academic departments in Schools and divisions within the UAS, devolved budgeting has meant that the School or UAS is expected to manage within a total budget envelope. In practice this means that monies for specific ad hoc items, e.g. the purchase of a new photocopier, is now funded from School/UAS reserves instead of the non-recurrent grant pot. The only difference between this and the previous type of budget virement is where the monies come from.

Transfer of monies within a department from one source of funds to another.

A budget is an estimate of planned future expenditure. Therefore it can make sense to revise the budget in-year to reflect a known change in activity. A typical example is where the budget for departmental cleaning was set up on Wages (source of funds ACAA) and during the year contract cleaners are employed. The cleaning budget can be vired from Wages to Other Charges (AAAA) so that budget and expenditure are in the same place, assisting in the process of budgetary control.

However, it is not good practice simply to vire budgets so that budget and actual are in line i.e. surpluses or deficits do not mean a budget virement is required. All budget virements must be processed via your Finance Manager.

3.11 Research grant reports/queries

At present there is no standard report equivalent to the Financial Summary Report which provides an overview of grant expenditure by department so obtaining an overview of grants expenditure and remaining budget on active awards can be more difficult. Cognos reports for monitoring grant expenditure at departmental level are currently being developed however, and ROO’s Information Services team is now producing monthly and quarterly reports at School level, namely:

Active awards

Expenditure YTD

X5 application in current financial year



Underlying/departmental level details are available to Finance Managers and can be forwarded to departments on request to assist with reviewing the department’s portfolio of research grants and contracts. Furthermore, with the development of reporting via Cognos, Finance Managers/Advisers can run one-off bespoke reports from the Grants module. Reports that are currently available to departments from UFS include:

GMS: Award Status Report (individual grant): this includes details of the total budget, commitments/expenditure project-to-date and budget remaining. This report, however, is not currently available for an individual project where the award is held in another department (please note that it is possible to select any starting period when running this report i.e. the report will not give a year to date picture unless the starting period is AUG-XX, where XX signifies the year.

GMS: Award Status Report (for department). As above but provides information on all the active grants held in a department with the proviso above. As the report is in hard copy and cannot be readily exported to Excel, and it may run to hundreds of pages for a large Science department, this is not an easy report to use in its current form.

GMS: Actual Expenditure Enquiry: Provides a breakdown of actual expenditure (including purchase order commitments) and whether any has failed funds checking.

GMS: Departmental Overhead Analysis: Can be particularly helpful when trying to clarify what departmental overheads have been earned by which grants.

AUD: Cost Audit Report: Can be particularly helpful when trying to clarify what costs have been transferred from a grant to the general ledger.

Various UFS screens show budget details and expenditure against budget at the level of individual grants. The expenditure enquiry screen shows details of transactions on an individual grant level and this information can be exported into Excel.



4. Monitoring and Controlling Expenditure Against Income

4.1 Introduction

All departments are required to monitor and control their expenditure to ensure that it is in line with available funds. Where there is no UFS budget departments should investigate significant surpluses or deficits rather than variances to budget but the basic principles of budgetary control as described in Section 3. are the same.

4.2 Which reports compare expenditure to available income

The primary purpose when monitoring expenditure against income is to ensure that expenditure does not exceed the available income. As when monitoring expenditure against budget, the first problem is how to identify which sources of funds are showing significant surpluses or deficits. The easiest way for departmental administrators to spot significant variances is to regularly review the Financial Summary Report.

4.2.1 The Financial Summary Report

Please refer to section 3.4 for guidance on how to read the Financial Summary Report. Once you have identified that a particular source of funds is showing a significant surplus or deficit, there is a range of reports which will help you identify why a source of funds is showing a significant surplus or deficit.

4.2.2 Trial Balance Report – Detailed (UFS)

This standard CUFS report will provide you with a detailed analysis of the year to date surplus or deficit on any account code combination you select. It can be run at any time data is required.

The data reported is as follows:

“Beginning Balance” (first column) This shows the balance on the account(s) at the beginning of the financial year.

“Period Activity” (second column) This shows year to date movement on all accounts in the range selected.

“Ending Balance” (third column) This gives the total balance on the account(s) selected when the report was run.

See Appendix G for a full example.



Pros & Cons of this report As you can set the parameters for

this report it allows you to focus on one small area of your accounts.

The detail provided in the report means it is very useful for working out why an account is in deficit or in surplus.

However, the detail means it will not help you identify which account is in trouble.

Finally this report only shows in-year activity, it provides no information on whether there is a CUFS budget or not.

Please note that it is possible to

select any starting period when running this report i.e. the report will not give a year to date picture unless the starting period is AUG-XX, where XX signifies the year.

4.2.3 Transaction Code Balances (UFS) Report

This standard UFS report will provide you with a detailed analysis of the year to date surplus or deficit on the account(s) selected at transaction code level. The data reported is as follows:

“Beginning Balance” (first column) This shows the balance on the account(s) at the beginning of the financial year.

“Period Activity” (second column) This shows year to date movement on all accounts in the range selected.

“Ending Balance” (third column) This gives the total balance on the account(s) selected when the report was run.



See Appendix H for a full example

Pros & Cons of this report Very similar to the ‘Trial Balance

Report- Detailed (UFS)’ report, but provides the transaction code descriptions and allows customised sub-totalling.

Can be run as required.

Will not provide details of any CUFS budget created.

4.2.4 Accounts Analysis Transaction Detail Report

This standard UFS report provides transaction by transaction detail, including reference and invoice numbers, of all activity on the account(s) selected for the chosen period.

See Appendix I for an example. Pros & Cons of this report This report can be run over the financial year end so that it shows different

financial years in one report.



This report is best for helping you identify the transactions that have caused your variance on a particular account rather than identifying which account has a problem.

In addition to the transaction code details, the report will provide opening and closing balances for each month in the period chosen, and sub-total and totals determined by the initial parameters set.

4.2.5 Trust Fund Statement

Income and expenditure on Trust Funds can be monitored using the reports previously listed. However there is a specific report for Trust Funds which summarises the purpose, performance and activity of each Trust Fund. It is produced and distributed by the Treasury and Investments section of the Finance Division on a monthly basis following the closure of General Ledger. It pulls together information available from UFS (sums on deposit, total value of capital and deposit income) and less transparent financial information (estimated income, number of units sold or purchased). See Appendix J for an example.

4.3 The importance of matching income to expenditure

It is always important to have a clear picture of financial plans, both income and expenditure. Financial Regulations state that “Departments are required to keep their expenditure within the resources available. In effect this is saying that expenditure should not exceed income (or budget allocated). This also links in with the HEFCE requirement that in the medium term the University’s total planned expenditure should not exceed its expected income. Ideally income and expenditure should be matched against each other in the same financial year, but this is not always possible due to timing differences. Where appropriate this gives rise to the need for accruals and pre-payments.

4.4 Spending surpluses

In some instances accrued surpluses may be utilised in order to resolve accounts that have gone into deficit. First it is critical to identify how the surplus has arisen and whether there are rules concerning how those funds may be used (e.g. specific donations and trust funds). Surpluses may only be used to fund allowable expenditure.

Chapter 3 of the Financial Procedures Manual (section 3.3) sets out more detailed rules regarding spending surpluses.

It specifies when certain transaction codes are to be used – particular care

is required when spending trading surpluses.



Appendices


Key:

Source

of funds

Code

Source of Funds Description Annual

Budget

Budget YTD

(1)

Income YTD

(2)

Expenditure

YTD (3)

Deficit/Surplu

s (4)=(1)+(2)-

(3)

Overdrawn/Ca

sh in Hand (5)

Money on

Deposit (6)

CUEF (7) Other

Investments

(8)

Total

(9)=(5)+(6)+(7

)+(8)

Balance Sheet

Entries (10)

Reconciliation

to CUFS

(11)=(5)-(10)

0000 Balance Sheet Default 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (523,522.41) 523,522.41

AAAA Chest Non Payroll 24,938.00 20,780.00 0.00 5,927.03 14,852.97 14,852.97 0.00 0.00 0.00 14,852.97 0.00 14,852.97

ABAA Chest Stipends 172,522.00 143,780.00 0.00 143,699.79 80.21 80.21 0.00 0.00 0.00 80.21 0.00 80.21

ACAA Chest Wages 374,540.00 312,120.00 0.00 308,640.68 3,479.32 3,479.32 0.00 0.00 0.00 3,479.32 0.00 3,479.32

ADAA Accumulated Balances 0.00 0.00 0.00 17,050.00 (17,050.00) 19,119.79 0.00 0.00 0.00 19,119.79 0.00 19,119.79

AHAH Grant From Rmc For Project Costs 22,915.00 22,915.00 0.00 14,242.89 8,672.11 8,672.11 0.00 0.00 0.00 8,672.11 0.00 8,672.11

DAJR Annual Equipment Grant 15,000.00 12,500.00 0.00 2,395.35 10,104.65 18,853.38 0.00 0.00 0.00 18,853.38 0.00 18,853.38

DAQK Maternity Cover - Dept 0.00 0.00 0.00 (7,274.00) 7,274.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EDAA Departments Share Of Research

Overheads

0.00 0.00 0.00 0.00 0.00 752.62 0.00 0.00 0.00 752.62 0.00 752.62

EFKM Donations 0.00 0.00 572.51 0.00 572.51 97.50 14,020.00 0.00 0.00 14,117.50 0.00 97.50

EGPA Samuel Johnson Bequest 0.00 0.00 13,760.66 22,677.81 (8,917.15) 528.32 64,660.00 0.00 0.00 65,188.32 0.00 528.32

GAAA External Trading 0.00 0.00 226,456.71 237,044.34 (10,587.63) 79,789.90 0.00 0.00 0.00 79,789.90 0.00 79,789.90

GAAB Internal Trading 0.00 0.00 861.02 1,212.32 (351.30) 2,061.73 0.00 0.00 0.00 2,061.73 0.00 2,061.73

HACD Grant re Facilities And Grounds 0.00 0.00 19.97 0.00 19.97 2.66 600.00 0.00 0.00 602.66 0.00 2.66

HAEK Friends Grant 0.00 0.00 672.17 0.00 672.17 12.89 3,710.00 0.00 0.00 3,722.89 0.00 12.89

HAKM Donations 0.00 0.00 29,770.22 37,164.67 (7,394.45) 992.04 155,475.00 46,951.53 0.00 203,418.57 0.00 992.04

HANH Donations Cromwell Building 0.00 0.00 78.21 0.00 78.21 9.72 2,315.00 0.00 0.00 2,324.72 0.00 9.72

HBAU Library Donations 0.00 0.00 119.24 0.00 119.24 14.95 3,525.00 0.00 0.00 3,539.95 0.00 14.95

HBPB Amazon Expedition Fund 0.00 0.00 6,255.91 0.00 6,255.91 590.51 184,965.00 0.00 0.00 185,555.51 0.00 590.51

HCAA Earmarked Donations/ Facilities 0.00 0.00 20,479.07 28,207.77 (7,728.70) 75.07 21,455.00 0.00 0.00 21,530.07 0.00 75.07

HCCE Donation - Cambridge City Council 0.00 0.00 523.37 0.00 523.37 3.37 520.00 0.00 0.00 523.37 0.00 3.37

IAAD Donations Endowment 0.00 0.00 1,479.70 0.00 1,479.70 153.31 7,405.00 39,570.51 0.00 47,128.82 0.00 153.31

KIAQ Endowment Fund 0.00 0.00 122,288.45 (344.62) 122,633.07 707.57 6,260.00 212,238.71 0.00 219,206.28 0.00 707.57

KIAR Taylor Maintenance Fund 0.00 0.00 286,050.91 267,882.64 18,168.27 18,200.17 0.00 9,022,861.55 0.00 9,041,061.72 0.00 18,200.17

KIAS Taylor Capital Fund 0.00 0.00 34,132.60 34,884.63 (752.03) (746.67) 0.00 1,076,639.00 0.00 1,075,892.33 0.00 (746.67)

KIAV Wallace & Grommit 0.00 0.00 (112,082.48) 334.65 (112,417.13) 0.00 0.00 0.00 0.00 0.00 0.00 0.00

KIAW Attenburgh Fund 0.00 0.00 640.53 9.97 630.56 68.49 575.00 20,058.62 0.00 20,702.11 0.00 68.49

KNBH MooreTrust 0.00 0.00 0.00 1,330.00 (1,330.00) (1,098.15) 0.00 0.00 0.00 (1,098.15) 0.00 (1,098.15)

KPBQ Dr Finlay RentFund 0.00 0.00 (3,401.46) 0.00 (3,401.46) 9.97 0.00 0.00 0.00 9.97 0.00 9.97

LIAR Appropriations In Aid - Taylor

Maintenance Fund

0.00 0.00 3,125.69 0.00 3,125.69 166.92 38,250.00 0.00 0.00 38,416.92 0.00 166.92

LIAS Appropriations In Aid - Taylor Capital

Fund

0.00 0.00 901.80 0.00 901.80 88.07 20,205.00 0.00 0.00 20,293.07 0.00 88.07

609,915.00 512,095.00 632,704.80 1,115,085.92 29,713.88 167,538.74 523,940.00 10,418,319.92 0.00 11,109,798.66 (523,522.41) 691,061.15

ZZZZ Depreciation - University Funded Assets 0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

609,915.00 512,095.00 632,704.80 1,117,691.02 27,108.78 173,269.89 523,940.00 10,418,319.92 0.00 11,115,529.81 (517,791.26) 691,061.15Grand Total

Net Total

MAAA-ZZZZ Total

Department XX Training

Income & Expenditure (£)

Overall Financial Position (£)

Memorandum (£)

Appendix A The Financial Summary Report~ Source of Funds




Key:

Cost

Centre

Code

Cost Centre Description Annual Budget Budget YTD (1) Income YTD (2) Expenditure YTD

(3)

Deficit/Surplus

(4)=(1)+(2)-

(3)

Overdrawn/Cash

in Hand (5)

Money on Deposit

(6)

CUEF (7) Other

Investment

s (8)

Total (9) =

(5)+(6)+(7)+(8)

Balance Sheet

Entries (10)

Reconciliation to

CUFS (11)=(5)-

(10)0000 Balance Sheet Default 0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 (517,621.26) 523,352.41

XXAA Training: Administration 46,915.00 42,915.00 3,666.34 40,901.32 5,680.02 (485,353.59) 495,930.00 0.00 0.00 10,576.41 0.00 (485,353.59)

XXAB Training: Workshop 3,000.00 2,500.00 0.00 2,081.15 418.85 418.85 0.00 0.00 0.00 418.85 0.00 418.85

XXAC Training: Maintenance 24,000.00 20,000.00 1,444.36 21,523.84 (79.48) 917.51 0.00 0.00 0.00 917.51 0.00 917.51

XXAD Training: Library 5,500.00 4,580.00 0.00 2,495.33 2,084.67 2,084.67 0.00 0.00 0.00 2,084.67 0.00 2,084.67

XXAJ Training: Collections 2,000.00 1,670.00 0.00 1,089.31 580.69 580.69 0.00 0.00 0.00 580.69 0.00 580.69

XXAK Training: Travel/ Staff Development 8,000.00 6,670.00 0.00 2,308.56 4,361.44 5,245.13 0.00 0.00 0.00 5,245.13 0.00 5,245.13

XXBA Training General 463,500.00 386,260.00 45,048.75 409,174.42 22,134.33 344,870.22 0.00 39,570.51 0.00 384,440.73 0.00 344,870.22

XXBB Dr Finlay - Trading Account 0.00 0.00 20,240.20 20,846.16 (605.96) 3.28 0.00 0.00 0.00 3.28 0.00 3.28

XXBC Prof Plum - Trading Account 0.00 0.00 10,543.38 10,236.23 307.15 2,814.21 0.00 0.00 0.00 2,814.21 0.00 2,814.21

XXCA Admission Fees 0.00 0.00 138,374.17 169,735.09 (31,360.92) (35,220.25) 0.00 0.00 0.00 (35,220.25) 0.00 (35,220.25)

XXDA Cleaning - Offices & Private Areas 11,000.00 9,170.00 0.00 4,543.30 4,626.70 4,626.70 0.00 0.00 0.00 4,626.70 0.00 4,626.70

XXEA Cleaning - Public Area 21,000.00 17,500.00 0.00 14,148.00 3,352.00 3,352.00 0.00 0.00 0.00 3,352.00 0.00 3,352.00

XXGA Processing 15,000.00 12,500.00 0.00 7,017.38 5,482.62 5,492.62 0.00 0.00 0.00 5,492.62 0.00 5,492.62

XXHA Interpretation (Inc Signage Of Collections) 0.00 0.00 10,240.35 346.00 (105.65) 8,466.43 0.00 0.00 0.00 8,466.43 0.00 8,466.43

XXIA Publicity (Exc Staff Advertising) 10,000.00 8,330.00 61.97 2,979.23 5,412.74 5,412.74 0.00 0.00 0.00 5,412.74 0.00 5,412.74

XXJA Room Hire 0.00 0.00 3,006.31 127.94 2,878.37 12,102.84 0.00 0.00 0.00 12,102.84 0.00 12,102.84

XXJB Cromwell Building Cafe 0.00 0.00 10,337.66 8,404.77 1,932.89 29,011.73 0.00 0.00 0.00 29,011.73 0.00 29,011.73

XXKA Cory Maintenance Fund - General 0.00 0.00 1,500.00 154.35 1,345.65 2,250.00 0.00 0.00 0.00 2,250.00 0.00 2,250.00

XXNB New Seminar Centre 0.00 0.00 (17,097.02) 14,000.00 (31,097.02) 119,782.30 0.00 0.00 0.00 119,782.30 0.00 119,782.30

XXPA Wildlife Photography course 0.00 0.00 3,561.78 3,614.43 (52.65) 533.57 0.00 0.00 0.00 533.57 0.00 533.57

XXPB Remote Accounting 0.00 0.00 32.00 78.37 (46.37) 17.63 0.00 0.00 0.00 17.63 0.00 17.63

XXPC The Lecture Series 0.00 0.00 24.00 0.00 24.00 248.00 0.00 0.00 0.00 248.00 0.00 248.00

XXPD Culture & Wildlife of South Africa 0.00 0.00 35.00 50.41 (15.41) 968.59 0.00 0.00 0.00 968.59 0.00 968.59

XXPE Deforestation of Borneo 0.00 0.00 30,410.00 30,208.40 201.60 447.60 0.00 0.00 0.00 447.60 0.00 447.60

XXPF Climate Control in China 0.00 0.00 154.00 436.41 (282.41) 487.59 0.00 0.00 0.00 487.59 0.00 487.59

XXPG Japanese Illustration 0.00 0.00 115.00 749.92 (634.92) (169.92) 0.00 0.00 0.00 (169.92) 0.00 (169.92)

XXPH Mayan Studies 0.00 0.00 25,180.00 25,510.40 (330.40) (185.40) 0.00 0.00 0.00 (185.40) 0.00 (185.40)

XXPI Inca Studies 0.00 0.00 340.00 517.11 (177.11) (92.11) 0.00 0.00 0.00 (92.11) 0.00 (92.11)

ZZYA Permanent Trust Fund Capital 0.00 0.00 0.00 0.00 0.00 66.95 0.00 8,132,388.46 0.00 8,132,455.41 0.00 66.95

ZZYB Spendable Trust Fund Capital 0.00 0.00 327,628.55 304,097.27 23,531.28 17,074.43 6,835.00 2,199,409.42 0.00 2,223,318.85 0.00 17,074.43

609,915.00 512,095.00 632,704.80 1,117,691.02 27,108.78 173,269.89 523,940.00 10,418,319.92 0.00 11,115,529.81 (517,791.26) 691,061.15Grand Total



Memorandum (£)Department: XX Training

Appendix B The Financial Summary Report ~ Cost Centre

Appendix B The Financial Summary Report ~ Cost Centre




Key:

Department: XX Training

Source of funds

Code

Source of Funds Description Cost

Centre

Code

Cost Centre Description Annual Budget Budget YTD (1) Income YTD (2) Expenditure YTD

(3)

Deficit/Surplus

(4)=(1)+(2)-(3)

Overdrawn/Cash

in Hand (5)

Money on Deposit

(6)

CUEF (7) Other

Investments

(8)

Total

(9)=(5)+(6)+(7)+(

8)

Balance Sheet

Entries (10)

Reconciliation to

CUFS (11)=(5)-

(10)Balance Sheet Default 0000 Balance Sheet Default 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (523,352.41) 523,352.41

Balance Sheet Default XXYD Subscriptions - General And

Corporate

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (170.00) 170.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (523,522.41) 523,522.41

Chest Non Payroll XXAA Training: Administration 24,000.00 20,000.00 0.00 25,397.61 (5,397.61) (5,397.61) 0.00 0.00 0.00 (5,397.61) 0.00 (5,397.61)

Chest Non Payroll XXAB Training: Workshop 3,000.00 2,500.00 0.00 2,081.15 418.85 418.85 0.00 0.00 0.00 418.85 0.00 418.85

Chest Non Payroll XXAC Training: Maintenance 24,000.00 20,000.00 0.00 21,523.84 (1,523.84) (1,523.84) 0.00 0.00 0.00 (1,523.84) 0.00 (1,523.84)

Chest Non Payroll XXAD Training: Library 5,500.00 4,580.00 0.00 2,495.33 2,084.67 2,084.67 0.00 0.00 0.00 2,084.67 0.00 2,084.67

Chest Non Payroll XXAJ Training: on-line courses 2,000.00 1,670.00 0.00 1,089.31 580.69 580.69 0.00 0.00 0.00 580.69 0.00 580.69

Chest Non Payroll XXAK Training: Travel/ Staff Development 8,000.00 6,670.00 0.00 2,308.56 4,361.44 4,361.44 0.00 0.00 0.00 4,361.44 0.00 4,361.44

Chest Non Payroll XXBA Training General (98,562.00) (82,140.00) 0.00 (77,599.99) (4,540.01) (4,540.01) 0.00 0.00 0.00 (4,540.01) 0.00 (4,540.01)

Chest Non Payroll XXDA Cleaning - Offices & Private Areas 11,000.00 9,170.00 0.00 4,543.30 4,626.70 4,626.70 0.00 0.00 0.00 4,626.70 0.00 4,626.70

Chest Non Payroll XXEA Cleaning - Public Area 21,000.00 17,500.00 0.00 14,148.00 3,352.00 3,352.00 0.00 0.00 0.00 3,352.00 0.00 3,352.00

Chest Non Payroll XXGA Processing 15,000.00 12,500.00 0.00 7,017.38 5,482.62 5,482.62 0.00 0.00 0.00 5,482.62 0.00 5,482.62

Chest Non Payroll XXIA Publicity (Exc Staff Advertising) 10,000.00 8,330.00 0.00 2,844.50 5,485.50 5,485.50 0.00 0.00 0.00 5,485.50 0.00 5,485.50

Chest Non Payroll XXJA Room Hire 0.00 0.00 0.00 57.41 (57.41) (57.41) 0.00 0.00 0.00 (57.41) 0.00 (57.41)

Chest Non Payroll XXZA Training Shop - General 0.00 0.00 0.00 20.63 (20.63) (20.63) 0.00 0.00 0.00 (20.63) 0.00 (20.63)

24,938.00 20,780.00 0.00 5,927.03 14,852.97 14,852.97 0.00 0.00 0.00 14,852.97 0.00 14,852.97

Chest Stipends XXBA Training General 172,522.00 143,780.00 0.00 143,643.73 136.27 136.27 0.00 0.00 0.00 136.27 0.00 136.27

Chest Stipends XXXZ Education Project Default 0.00 0.00 0.00 56.06 (56.06) (56.06) 0.00 0.00 0.00 (56.06) 0.00 (56.06)

172,522.00 143,780.00 0.00 143,699.79 80.21 80.21 0.00 0.00 0.00 80.21 0.00 80.21

Chest Wages XXBA Training General 374,540.00 312,120.00 0.00 308,184.10 3,935.90 3,935.90 0.00 0.00 0.00 3,935.90 0.00 3,935.90

Chest Wages XXVM Schools Garden Fund 0.00 0.00 0.00 456.58 (456.58) (456.58) 0.00 0.00 0.00 (456.58) 0.00 (456.58)

374,540.00 312,120.00 0.00 308,640.68 3,479.32 3,479.32 0.00 0.00 0.00 3,479.32 0.00 3,479.32

ADAA Accumulated Balances XXBA Training General 0.00 0.00 0.00 17,050.00 (17,050.00) 19,119.79 0.00 0.00 0.00 19,119.79 0.00 19,119.79

0.00 0.00 0.00 17,050.00 (17,050.00) 19,119.79 0.00 0.00 0.00 19,119.79 0.00 19,119.79

AHAH Grant From Rmc For Project

Costs

XXAA Training: Administration 22,915.00 22,915.00 0.00 14,242.89 8,672.11 8,672.11 0.00 0.00 0.00 8,672.11 0.00 8,672.11

22,915.00 22,915.00 0.00 14,242.89 8,672.11 8,672.11 0.00 0.00 0.00 8,672.11 0.00 8,672.11

DAJR Annual Equipment Grant XXBA Training General 15,000.00 12,500.00 0.00 2,395.35 10,104.65 18,853.38 0.00 0.00 0.00 18,853.38 0.00 18,853.38

15,000.00 12,500.00 0.00 2,395.35 10,104.65 18,853.38 0.00 0.00 0.00 18,853.38 0.00 18,853.38

DAQK Maternity Cover - Dept XX XXBA Training General 0.00 0.00 0.00 (7,274.00) 7,274.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

609,915.00 512,095.00 632,704.80 1,115,085.92 29,713.88 167,538.74 523,940.00 10,418,319.92 0.00 11,109,798.66 (523,522.41) 691,061.15

ZZZZ Depreciation - University

Funded Assets

0000 Balance Sheet Default 0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

609,915.00 512,095.00 632,704.80 1,117,691.02 27,108.78 173,269.89 523,940.00 10,418,319.92 0.00 11,115,529.81 (517,791.26) 691,061.15Grand Total

ADAA Subtotal

AHAH Subtotal

DAJR Subtotal

Net Total

ACAA

ACAA Subtotal

ZZZZ Subtotal

MAAA-ZZZZ Total

AAAA

AAAA Subtotal

ABAA

ABAA Subtotal

0000

0000 Subtotal



Memorandum (£)

Appendix C The Financial Summary Report ~ Long Source of Funds




Key:

Cost Centre

Code

Cost Centre Description Source

of Funds

Code

Source of Funds Description Annual Budget Budget YTD (1) Income YTD (2) Expenditure YTD

(3)

Deficit/Surplus

(4)=(1)+(2)-(3)

Overdrawn/Cash in

Hand (5)

Money on Deposit

(6)

CUEF (7) Other

Investment

s (8)

Total

(9)=(5)+(6)+(7)+(8

)

Balance Sheet

Entries (10)

Reconciliation to

CUFS (11)=(5)-

(10)

0000 Balance Sheet Default 0000 Balance Sheet Default 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (523,352.41) 523,352.41

0000 Balance Sheet Default ZZZZ Depreciation - University Funded Assets 0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 (517,621.26) 523,352.41

XXAA Training: Administration AAAA Chest Non Payroll 24,000.00 20,000.00 0.00 25,397.61 (5,397.61) (5,397.61) 0.00 0.00 0.00 (5,397.61) 0.00 (5,397.61)

XXAA Training: Administration AHAH Grant From RMC For Project Costs 22,915.00 22,915.00 0.00 14,242.89 8,672.11 8,672.11 0.00 0.00 0.00 8,672.11 0.00 8,672.11

XXAA Training: Administration EFKM Donations 0.00 0.00 90.90 0.00 90.90 (13,929.10) 14,020.00 0.00 0.00 90.90 0.00 (13,929.10)

XXAA Training: Administration LIAR Appropriations In Aid -Taylor Maintenance

Fund

0.00 0.00 324.58 0.00 324.58 (37,925.42) 38,250.00 0.00 0.00 324.58 0.00 (37,925.42)

XXAA Training: Administration LIAS Appropriations In Aid - Taylor Capital Fund 0.00 0.00 171.46 0.00 171.46 (20,033.54) 20,205.00 0.00 0.00 171.46 0.00 (20,033.54)

46,915.00 42,915.00 3,666.34 40,901.32 5,680.02 (485,353.59) 495,930.00 0.00 0.00 10,576.41 0.00 (485,353.59)

XXAC Training: Maintenance AAAA Chest Non Payroll 24,000.00 20,000.00 0.00 21,523.84 (1,523.84) (1,523.84) 0.00 0.00 0.00 (1,523.84) 0.00 (1,523.84)

XXAC Training: Maintenance GAAA External Trading 0.00 0.00 799.34 0.00 799.34 985.58 0.00 0.00 0.00 985.58 0.00 985.58

XXAC Training: Maintenance GAAB Internal Trading 0.00 0.00 645.02 0.00 645.02 1,455.77 0.00 0.00 0.00 1,455.77 0.00 1,455.77

24,000.00 20,000.00 1,444.36 21,523.84 (79.48) 917.51 0.00 0.00 0.00 917.51 0.00 917.51

XXAK Training: Travel/ Staff

Development

AAAA Chest Non Payroll 8,000.00 6,670.00 0.00 2,308.56 4,361.44 4,361.44 0.00 0.00 0.00 4,361.44 0.00 4,361.44

XXAK Training: Travel/ Staff

Development

GAAA External Trading 0.00 0.00 0.00 0.00 0.00 883.69 0.00 0.00 0.00 883.69 0.00 883.69

8,000.00 6,670.00 0.00 2,308.56 4,361.44 5,245.13 0.00 0.00 0.00 5,245.13 0.00 5,245.13

XXBA Training General AAAA Chest Non Payroll (31,062.00) (25,890.00) 0.00 (77,599.99) (4,540.01) (4,540.01) 0.00 0.00 0.00 (4,540.01) 0.00 (4,540.01)

XXBA Training General ABAA Chest Stipends 172,522.00 143,780.00 0.00 143,643.73 136.27 136.27 0.00 0.00 0.00 136.27 0.00 136.27

XXBA Training General ACAA Chest Wages 374,540.00 312,120.00 0.00 308,184.10 3,935.90 3,935.90 0.00 0.00 0.00 3,935.90 0.00 3,935.90

XXBA Training General ADAA Accumulated Balances 0.00 0.00 0.00 17,050.00 (17,050.00) 19,119.79 0.00 0.00 0.00 19,119.79 0.00 19,119.79

XXBA Training General DAJR Annual Equipment Grant 15,000.00 12,500.00 0.00 2,395.35 10,104.65 18,853.38 0.00 0.00 0.00 18,853.38 0.00 18,853.38

XXBA Training General DAQK Maternity Cover - Dept XX 0.00 0.00 0.00 (7,274.00) 7,274.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

XXBA Training General EDAA Departments Share Of Research Overheads 0.00 0.00 0.00 0.00 0.00 752.62 0.00 0.00 0.00 752.62 0.00 752.62

XXBA Training General HACD Grant re Facilities And Grounds 0.00 0.00 16.12 0.00 16.12 598.81 0.00 0.00 0.00 598.81 0.00 598.81

XXBA Training General HAEK Friends Grant 0.00 0.00 648.16 0.00 648.16 3,698.88 0.00 0.00 0.00 3,698.88 0.00 3,698.88

531,000.00 442,510.00 45,048.75 409,174.42 22,134.33 344,870.22 0.00 39,570.51 0.00 384,440.73 0.00 344,870.22

XXBB Dr Peters - Trading

Account

GAAA External Trading 0.00 0.00 240.20 660.00 (419.80) 189.44 0.00 0.00 0.00 189.44 0.00 189.44

XXBB Dr Peters - Trading

Account

HAKM Donations 0.00 0.00 0.00 186.16 (186.16) (186.16) 0.00 0.00 0.00 (186.16) 0.00 (186.16)

0.00 0.00 240.20 846.16 (605.96) 3.28 0.00 0.00 0.00 3.28 0.00 3.28

XXBC Prof Plum - Trading

Account

GAAA External Trading 0.00 0.00 0.00 172.37 (172.37) (172.37) 0.00 0.00 0.00 (172.37) 0.00 (172.37)

XXBC Prof Plum - Trading

Account

HAKM Donations 0.00 0.00 543.38 63.86 479.52 2,986.58 0.00 0.00 0.00 2,986.58 0.00 2,986.58

0.00 0.00 543.38 236.23 307.15 2,814.21 0.00 0.00 0.00 2,814.21 0.00 2,814.21

XXCA Admission Fees GAAA External Trading 0.00 0.00 138,099.47 169,735.09 (31,635.62) (45,237.04) 0.00 0.00 0.00 (45,237.04) 0.00 (45,237.04)

XXCA Admission Fees HAKM Donations 0.00 0.00 274.70 0.00 274.70 10,016.79 0.00 0.00 0.00 10,016.79 0.00 10,016.79

0.00 0.00 138,374.17 169,735.09 (31,360.92) (35,220.25) 0.00 0.00 0.00 (35,220.25) 0.00 (35,220.25)

ZZYA Permanent Trust Fund

Capital

KIAR Taylor Maintenance Fund 0.00 0.00 0.00 0.00 0.00 26.99 0.00 7,005,380.78 0.00 7,005,407.77 0.00 26.99


Capital

KIAS Taylor Capital Fund 0.00 0.00 0.00 0.00 0.00 0.00 0.00 920,270.57 0.00 920,270.57 0.00 0.00


Capital


0.00 0.00 0.00 0.00 0.00 66.95 0.00 8,132,388.46 0.00 8,132,455.41 0.00 66.95

ZZYB Spendable Trust Fund

Capital

KIAR Taylor Maintenance Fund 0.00 0.00 286,050.91 267,882.64 18,168.27 18,173.18 0.00 2,017,480.77 0.00 2,035,653.95 0.00 18,173.18


Capital

KIAS Taylor Capital Fund 0.00 0.00 34,132.60 34,884.63 (752.03) (746.67) 0.00 156,368.43 0.00 155,621.76 0.00 (746.67)


Capital


0.00 0.00 327,628.55 304,097.27 23,531.28 17,074.43 6,835.00 2,199,409.42 0.00 2,223,318.85 0.00 17,074.43

609,915.00 512,095.00 632,704.80 1,117,691.02 27,108.78 173,269.89 523,940.00 10,418,319.92 0.00 11,115,529.81 (517,791.26) 691,061.15

0.00 0.00 0.00 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

609,915.00 512,095.00 632,704.80 1,115,085.92 29,713.88 167,538.74 523,940.00 10,418,319.92 0.00 11,109,798.66 (523,522.41) 691,061.15


Memorandum (£)


Net Total

Deduct MAAA-ZZZZ

XXCA Subtotal

ZZYA Subtotal

ZZYB Subtotal

Grand Total

XXAK Subtotal

XXBA Subtotal

XXBB Subtotal

XXBC Subtotal

XXAC Subtotal

0000 Subtotal

XXAA Subtotal


Appendix D Long Cost Centre Summary Report




Key:

Source of

Funds

Code

Source of Funds Description Annual Budget Budget YTD

(1)

Income -

Interest &

Dividends

Rec'd

Income -

Other

Income YTD

(2)

Expenditure -

Stipends

Expenditure -

Stipends

Casual

Expenditure -

Wages

Expenditure -

Scholarships

Expenditure -

Non Pay

Expenditure

YTD (3)

Deficit/Surplu

s (4)=(1)+(2)-

(3)

Overdrawn/Ca

sh in Hand (5)

Money on

Deposit (6)

CUEF (7) Other

Investments

(8)

Total

(9)=(5)+(6)+(7)+

(8)

Balance Sheet

Entries (10)

Reconciliation to

CUFS (11)=(5)-(10)

0000 Balance Sheet Default 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 (523,522.41) 523,522.41AAAA Chest Non Payroll 24,938.00 20,780.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 5,927.03 5,927.03 14,852.97 14,852.97 0.00 0.00 0.00 14,852.97 0.00 14,852.97ABAA Chest Stipends 172,522.00 143,780.00 0.00 0.00 0.00 143,699.79 0.00 0.00 0.00 0.00 143,699.79 80.21 80.21 0.00 0.00 0.00 80.21 0.00 80.21ACAA Chest Wages 374,540.00 312,120.00 0.00 0.00 0.00 5,711.92 0.00 302,928.76 0.00 0.00 308,640.68 3,479.32 3,479.32 0.00 0.00 0.00 3,479.32 0.00 3,479.32ADAA Accumulated Balances 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 17,050.00 17,050.00 (17,050.00) 19,119.79 0.00 0.00 0.00 19,119.79 0.00 19,119.79AHAH Grant From RMC For Project Costs 22,915.00 22,915.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 14,242.89 14,242.89 8,672.11 8,672.11 0.00 0.00 0.00 8,672.11 0.00 8,672.11DAJR Annual Equipment Grant 15,000.00 12,500.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,395.35 2,395.35 10,104.65 18,853.38 0.00 0.00 0.00 18,853.38 0.00 18,853.38DAQK Maternity Cover - Dept XX 0.00 0.00 0.00 0.00 0.00 (7,274.00) 0.00 0.00 0.00 0.00 (7,274.00) 7,274.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00EDAA Departments Share Of Research Overheads 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 752.62 0.00 0.00 0.00 752.62 0.00 752.62

EFKM Donations 0.00 0.00 469.95 102.56 572.51 0.00 0.00 0.00 0.00 0.00 0.00 572.51 97.50 14,020.00 0.00 0.00 14,117.50 0.00 97.50EGPA Samuel Johnson Bequest 0.00 0.00 2,424.83 11,335.83 13,760.66 0.00 0.00 0.00 0.00 22,677.81 22,677.81 (8,917.15) 528.32 64,660.00 0.00 0.00 65,188.32 0.00 528.32GAAA External Trading 0.00 0.00 0.00 226,456.71 226,456.71 70,518.27 0.00 128,105.98 0.00 38,420.09 237,044.34 (10,587.63) 79,789.90 0.00 0.00 0.00 79,789.90 0.00 79,789.90GAAB Internal Trading 0.00 0.00 0.00 861.02 861.02 0.00 0.00 0.00 0.00 1,212.32 1,212.32 (351.30) 2,061.73 0.00 0.00 0.00 2,061.73 0.00 2,061.73HACD Grant re Facilities And Grounds 0.00 0.00 19.97 0.00 19.97 0.00 0.00 0.00 0.00 0.00 0.00 19.97 2.66 600.00 0.00 0.00 602.66 0.00 2.66HAEK Friends Grant 0.00 0.00 107.72 564.45 672.17 0.00 0.00 0.00 0.00 0.00 0.00 672.17 12.89 3,710.00 0.00 0.00 3,722.89 0.00 12.89HAKM Donations 0.00 0.00 6,485.35 23,284.87 29,770.22 0.00 0.00 0.00 0.00 37,164.67 37,164.67 (7,394.45) 992.04 155,475.00 46,951.53 0.00 203,418.57 0.00 992.04HANH Donations Cromwell Building 0.00 0.00 78.21 0.00 78.21 0.00 0.00 0.00 0.00 0.00 0.00 78.21 9.72 2,315.00 0.00 0.00 2,324.72 0.00 9.72HBAU Library Donations 0.00 0.00 119.24 0.00 119.24 0.00 0.00 0.00 0.00 0.00 0.00 119.24 14.95 3,525.00 0.00 0.00 3,539.95 0.00 14.95HBPB Amazon Expedition Fund 0.00 0.00 6,255.91 0.00 6,255.91 0.00 0.00 0.00 0.00 0.00 0.00 6,255.91 590.51 184,965.00 0.00 0.00 185,555.51 0.00 590.51HCAA Earmarked Donations/ Horticultural 0.00 0.00 961.07 19,518.00 20,479.07 0.00 0.00 292.25 0.00 27,915.52 28,207.77 (7,728.70) 75.07 21,455.00 0.00 0.00 21,530.07 0.00 75.07HCCE Donation - Cambridge City Council 0.00 0.00 3.37 520.00 523.37 0.00 0.00 0.00 0.00 0.00 0.00 523.37 3.37 520.00 0.00 0.00 523.37 0.00 3.37IAAD Donations Endowment 0.00 0.00 1,479.70 0.00 1,479.70 0.00 0.00 0.00 0.00 0.00 0.00 1,479.70 153.31 7,405.00 39,570.51 0.00 47,128.82 0.00 153.31KIAQ Endowment Fund 0.00 0.00 6,459.89 115,828.56 122,288.45 0.00 0.00 0.00 0.00 (344.62) (344.62) 122,633.07 707.57 6,260.00 212,238.71 0.00 219,206.28 0.00 707.57KIAR Taylor Maintenance Fund 0.00 0.00 286,050.91 0.00 286,050.91 20,604.48 0.00 228,619.16 0.00 18,659.00 267,882.64 18,168.27 18,200.17 0.00 9,022,861.55 0.00 9,041,061.72 0.00 18,200.17KIAS Taylor Capital Fund 0.00 0.00 34,132.60 0.00 34,132.60 0.00 0.00 29,464.63 0.00 5,420.00 34,884.63 (752.03) (746.67) 0.00 1,076,639.00 0.00 1,075,892.33 0.00 (746.67)KIAV Wallace & Grommit 0.00 0.00 334.65 (112,417.13) (112,082.48) 0.00 0.00 0.00 0.00 334.65 334.65 (112,417.13) 0.00 0.00 0.00 0.00 0.00 0.00 0.00KIAW Attenburgh Fund 0.00 0.00 640.53 0.00 640.53 0.00 0.00 0.00 0.00 9.97 9.97 630.56 68.49 575.00 20,058.62 0.00 20,702.11 0.00 68.49KNBH Moore Trust 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 1,330.00 1,330.00 (1,330.00) (1,098.15) 0.00 0.00 0.00 (1,098.15) 0.00 (1,098.15)KPBQ Dr Finlay RentFund A 0.00 0.00 9.97 (3,411.43) (3,401.46) 0.00 0.00 0.00 0.00 0.00 0.00 (3,401.46) 9.97 0.00 0.00 0.00 9.97 0.00 9.97LIAR Appropriations In Aid - Taylor Maintenance

Fund

0.00 0.00 1,625.69 1,500.00 3,125.69 0.00 0.00 0.00 0.00 0.00 0.00 3,125.69 166.92 38,250.00 0.00 0.00 38,416.92 0.00 166.92

LIAS Appropriations In Aid - Taylor Capital Fund 0.00 0.00 901.80 0.00 901.80 0.00 0.00 0.00 0.00 0.00 0.00 901.80 88.07 20,205.00 0.00 0.00 20,293.07 0.00 88.07

609,915.00 512,095.00 348,561.36 284,143.44 632,704.80 233,260.46 0.00 689,410.78 0.00 192,414.68 1,115,085.92 29,713.88 167,538.74 523,940.00 10,418,319.92 0.00 11,109,798.66 (523,522.41) 691,061.15ZZZZ Depreciation - University Funded Assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,605.10 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2,605.10 2,605.10 (2,605.10) 5,731.15 0.00 0.00 0.00 5,731.15 5,731.15 0.00609,915.00 512,095.00 348,561.36 284,143.44 632,704.80 233,260.46 0.00 689,410.78 0.00 195,019.78 1,117,691.02 27,108.78 173,269.89 523,940.00 10,418,319.92 0.00 11,115,529.81 (517,791.26) 691,061.15

Income & Expenditure (£)Overall Financial Position (£)Memorandum (£)

Grand Total

Net Total

MAAA-ZZZZ Total


Appendix E Wide Source of Funds Summary Report




Appendix F Budget Report – Comparing to Actual (UFS)




Appendix G The Trial Balance –Detail Report

CAPSA Set of Books Trial Balance - Detail (UFS) Report Date: 30-MAY-2008 10:42

Year to date as of MAY-08 Page: 1 of 1

Currency: GBP

Cost Centre Range: XXTC to XXTC

Cost Centre: XXTC Certificate in Accounts programme

Transaction Description Account Flexfield Beginning Balance Period Activity Ending Balance

----------- ----------------------------------------------------------------------------------------- -------------

EBL0 Manuals; computer, workshop, training U.XX.XXTC.GAAA.EBL0 0.00 80.00 80.00

EBL0 Manuals; computer, workshop, training U.XX.XXTC.GAAB.EBL0 0.00 650.00 650.00

ERL0 Promotions and Publicity U.XX.XXTC.AAAA.ERL0 0.00 80.00 80.00

ERPZ TRAINING COURSES U.XX.XXTC.AAAA.ERPZ 0.00 4,611.84 4,611.84

ERPZ TRAINING COURSES U.XX.XXTC.GAAA.ERPZ 0.00 1,200.00 1,200.00

EXAZ FEES, LECTURING, EXAMINING, MODERATING U.XX.XXTC.AAAA.EXAZ 0.00 864.00 864.00

EXAZ FEES, LECTURING, EXAMINING, MODERATING U.XX.XXTC.GAAA.EXAZ 0.00 120.00 120.00

EXAZ FEES, LECTURING, EXAMINING, MODERATING U.XX.XXTC.GAAB.EXAZ 0.00 160.00 160.00

EZXX TRANSFER OF EXPENDITURE U.XX.XXTC.GAAA.EZXX 0.00 70.00 70.00

EZXX TRANSFER OF EXPENDITURE U.XX.XXTC.GAAC.EZXX 0.00 (70.00) (70.00)

LAAD TRAINING COURSES U.XX.XXTC.GAAA.LAAD 0.00 (1,200.00) (1,200.00)

LAAL EXAM FEES INCOME U.XX.XXTC.GAAA.LAAL 0.00 (120.00) (120.00)

LAAL EXAM FEES INCOME U.XX.XXTC.GAAB.LAAL 0.00 (160.00) (160.00)

LKQC SALES:BOOKS U.XX.XXTC.GAAA.LKQC 0.00 (80.00) (80.00)

LKQC SALES:BOOKS U.XX.XXTC.GAAB.LKQC 0.00 (650.00) (650.00)

XEAA Departmental Reserves U.XX.XXTC.GAAA.XEAA (3,569.92) 0.00 (3,569.92)

XEAA Departmental Reserves U.XX.XXTC.GAAB.XEAA (286.00) 0.00 (286.00)

XEAA Departmental Reserves U.XX.XXTC.GAAC.XEAA 70.00 0.00 70.00

----------- -------------- --------------

Subtotal for Cost Centre XXTC (3,785.92) 5,555.84 1,769.92

=========== ============== ==============

Grand Total for Report (3,785.92) 5,555.84 1,769.92

============ ============== ==============




Appendix H Transaction Code Balance Report

CAPSA Set of Books Transaction Code Balances - Alternative (UFS) Report Date:30-MAY-2008 11:32

Year to date Period MAY-08 Page:1 of 1

Currency: GBP Department XX Training

Type: Entered


Entity Range: to


Cost Centre Enti Trx Transaction Description Beginning Balance Period Activity Ending Balance

-------------------------------------------------------- ---- ---- --------------------------------- ---------------

XXTC Certificate U EBL0 Manuals; computer, workshop, 0.00 730.00 730.00

XXTC Certificate U ERL0 Promotions and Publicity 0.00 80.00 80.00

XXTC Certificate U ERPZ TRAINING COURSES 0.00 5,811.84 5,811.84

XXTC Certificate U EXAZ FEES, LECTURING, EXAMINING, 0.00 1,144.00 1,144.00

XXTC Certificate U LAAD TRAINING COURSES 0.00 (1,200.00) 1,200.00)

XXTC Certificate U LAAL EXAM FEES INCOME 0.00 (280.00) (280.00)

XXTC Certificate U LKQC SALES:BOOKS 0.00 (730.00) (730.00)

XXTC Certificate U XEAA Departmental Reserves (3,785.92) 0.00 (3,785.92)

--------------- --------------- ---------------

Entity U Total: (3,785.92) 5,555.84 1,769.92

--------------- --------------- ---------------

Cost Centre XXTC Total: (3,785.92) 5,555.84 1,769.92

================== =============== ==============

Report Totals: (3,785.92) 5,555.84 1,769.92




Appendix I Accounts Analysis – Transaction Detail 3 Report

CAPSA Set of Books Account Analysis - Transaction Detail 3 (UFS) Report Date: 30-MAY-2008 14:19

From APR-08 Through APR-08 Page: 1 of 1

Currency: GBP




Period: APR-08

Posted Flexfield Description Reference 1 Reference 2 PO Number Amount

--------- --------------- ------------------------------------------------------------ -----------------------------

07-MAY-08 XXTC.0000.SPAA PETTY CASH CONTRA XX/BBC/07/05/08/02 14.50

18-APR-08 XXTC.AAAA.ERPZ Certificate of Accounts prog COLLEGE OF E ANGLIA, SI-048719 3,250.00

07-MAY-08 XXTC.AAAA.EXAZ CONTRACT FOR EXAMS COLLEGE OF E ANGLIA, SI-048835 676.00

18-APR-08 XXTC.GAAA.ERPZ Certificate of Accounts prog COLLEGE OF E ANGLIA, SI-048719 750.00

07-MAY-08 XXTC.GAAA.EXAZ CONTRACT FOR EXAMS COLLEGE OF E ANGLIA, SI-048835 156.00

18-APR-08 XXTC.GAAA.LAAD Revenue account invoice 543502 Fred Bloggs (300.00)

25-APR-08 XXTC.GAAA.LAAD Revenue account invoice 544479 CHURCHILL COLLEGE (558.00)

25-APR-08 XXTC.GAAA.LAAD Revenue account invoice 544380 PEMBROKE COLLEGE (48.00)



25-APR-08 XXTC.GAAA.LAAD Revenue account invoice 544425 DARWIN COLLEGE (429.00)

25-APR-08 XXTC.GAAA.LAAD Revenue account invoice 544383 ST CATHARINE'S COLL (874.00)

--------------------

Total: 1,811.50

--------------------

APR-08 Total: 1,811.50

--------------------

Cost Centre XXTC Total: 1,811.50

1,811.50 --------------------

APR-08 Begin Balance = 7,673.54 DR

Ending Balance = 9,485.04 DR



Appendix J Trust Fund Statement



Appendix K: Glossary

Accruals Costs recognised before payment or invoicing to match against receipt of goods/services

Budget A financial representation of planned activity for a given period of time.

CC Cost centre

Chest income HEFCE funding, tuition fees, general endowment, share of indirect costs of research recovered and other income available for allocation without condition

CIF Capital Investment Funding

COGNOS A software package used for reporting

Commitment An agreement or a pledge to assume a financial obligation at a future date e.g. the funds that we are committing to spend with a supplier when we send them a purchase order.

CUEF Cambridge University Endowment Fund

CUFS Cambridge University Financial System

DFST Dual Funding Support Target

EMBS Estate Management Building Services Division

fEC Full Economic Costing

FP&A Financial Planning & Analysis - Finance Division

FWP Finance Working Party – a group set up to review the cost implications of decisions taken in departments

Forecast Takes into account actual income or levels of expenditure and projects these forward to the end of the financial year.

FTE Full Time Equivalents

GL General Ledger

HEFCE Higher Education Funding Council of England

Overheads Costs not directly related to activity

pFACT The software tool used by Research Services Division to cost research grants and contracts

Phasing How the budget has been split across the months of the financial year.

PI Principal Investigator

Pooled Labour The recharge to grants of technicians and other support staff not assigned to specific grants

PRAO Planning & Resource Allocation Office

PRC Planning & Resource Committee

Pre-payments Payments made in advance for goods/services in future periods. The accounting cost is matched against the goods/services

PVC Pro-Vice Chancellor

QR The component of the HEFCE block grant to fund Quality Research

RAM Resource Allocation Model

RMC Resource Management Committee

RSD Research Services Division

RTSG Research Training Support Grants

SoF Sources of Funds

SRIF Scientific Research Infrastructure Fund

TDA Training and Development Agency

UAS Unified Administration Service

Variance The difference between actual and budgeted income or expenditure.

Vire To transfer, usually a budget

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