USE OF DETAIL CODES IN

APTOSPresenter: Anne Shrubshall

Date: FASIG 15 February 2007

PRESENTATION OVERVIEW

Why we use codes

Reporting needs

Importance of detail codes

Reporting categories

Level of detail

Why do we use codes? Grouping financial transactions

Allows analysis and reporting of transactions

Income or expenditure

Balance sheet (assets, debtors, etc)

Whole University

By School/Service

By source of income (eg research)

By budget unit

By cost centre

By detail code

Reporting Needs School level - Internal management puposes

budgeting

monitoring

University level – Internal financial reporting

monitoring

forecasting

University level – External financial reports

Statutory financial statements

HESA return

Statistical analysis and benchmarking

Importance of detail codes

Detail codes identify the type of transaction

Income – analysis

Expenditure - analysis

Internal reporting

budgetary control by comparing actual

transactions to budgeted transactions

External reporting

what resources are available to the

University

how are they applied

Key Factors in Ensuring Validity of Data

The use of detail codes must be:

• Consistent• Appropriate

Consistent coding

Consistency within budgetary units

Consistency across University

Comparisons year on year

forecasting

decision making

Comparisons between budgetary units:

assessing effective use of resources

Appropriate coding

Nature of transaction is accurately reported

University financial statements

Data is valid for statistical purposes

Actual transactions must be coded to the most

appropriate code, not where there is a budget

The provision of accurate historical data enables

informed decisions to be made for management

purposes

Internal Reporting Categories - Income

Teaching income

Research and other project income

Other income

Inter-school transfers

Internal Reporting Categories - Expenditure

Staff costs

Other direct expenditure

Staff related costs

Student expenses

Other operating expenditure

Corporate contributions

Internal Reporting Categories - Appropriations

To reserves/other funds

PDAs

Internal loans

SDF

From reserves/other funds

SDF

DVC Resources

External Reporting

Funding Council grants

Tuition fee

Research grants and contracts

Other income (further analysis)

Endowment and investment income

Staff costs (academic/other)

Other operating expenses (further analysis)

Depreciation

Interest payable

Level of detail (1)

How much detail do we need?

At what level do you budget?

Example – travel and subsistence50000 Travel and subsistence

50100 Travel

50110 Car hire costs

50120 Public transport

50130 Own transport

Level of detail (2)

Budget on one code

Code actuals to correct codes

Recruitment costs

79021 Advertising

79022 Interview expenses

79023 Relocation expenses

79024 General

Analysis of costs

By category of expenditure

Travel – other operating expenditure

Accommodation – other operating expenditure

By type of activity

Training – staff related costs

Field trips – student expenses

Conferences – other operating expenditure

Key areas – staff costs

Must distinguish between employed staff (paid

through payroll) and self-employed personnel

Must distinguish between academic and other

All employed staff codes beginning 3*

All staff paid against invoices coded to 40*

Key areas – specific treatment

The following all have specific significance in the

HESA return

• Premises costs• External examiners• Books etc• Scholarships, bursaries etc

Netting of transactions

• In the majority of circumstances it is not

appropriate to net income off against expenditure

Exceptions

Reimbursement of expenditure that is not the

University’s cost

Refund arising from overpayment

The way forward

• We have too many detail codes• We need to focus on the core reporting

categories• Some areas do require some specific detail• We need to manage budgets at a higher level