USE OF DETAIL CODES IN APTOS Presenter: 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 subsistence Travel and subsistence Travel Car hire costs Public transport Own transport

Level of detail (2) Budget on one code Code actuals to correct codes Recruitment costs Advertising Interview expenses Relocation expenses 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