1. USE OF DETAIL CODES IN APTOS Presenter: Anne Shrubshall Date: FASIG 15 February 2007

2. PRESENTATION OVERVIEW Why we use codes Reporting needs Importance of detail codes Reporting categories Level of detail

3. 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

4. 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

5. 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

6. Key Factors in Ensuring Validity of Data The use of detail codes must be: Consistent Appropriate

7. 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

8. 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

9. Internal Reporting Categories - Income Teaching income Research and other project income Other income Inter-school transfers

10. Internal Reporting Categories - Expenditure Staff costs Other direct expenditure Staff related costs Student expenses Other operating expenditure Corporate contributions

11. Internal Reporting Categories - Appropriations To reserves/other funds PDAs Internal loans SDF From reserves/other funds SDF DVC Resources

12. 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

13. Level of detail (1) How much detail do we need? At what level do you budget? Example – travel and subsistence 50000 Travel and subsistence 50100 Travel 50110 Car hire costs 50120 Public transport 50130 Own transport

14. 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

15. 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

16. 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*

17. Key areas – specific treatment The following all have specific significance in the HESA return Premises costs External examiners Books etc Scholarships, bursaries etc

18. 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

19. 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