Appendix A

Cost Centre Analysis Code 4 - Budget Pro-Forma Heads for Academic Departments

Quick Reference Guide

ALOC - General Account Allocations

  • Used in Budget Pro-forma Heads: 1, 2, 3 and 6
  • Cost centre pattern: B_ _ 000 only
  • Cost Centres only to be opened by Finance Office
  • These cost centres are reserved exclusively for Finance Office transactions. The local distribution of allocations within the department, for example the sub-allocation of the general account allocations to individual teaching and research accounts, must be done through DEXP cost centres.
  • Formula allocations into the department from the Centre (RAM)
  • Strategic Allocations into the department from the Centre (RAM)
  • Actual Salary Cost Allocations

OINC - Overhead Income

  • Used in Budget Pro-forma Heads: 4a
  • Cost Centre Pattern: B _ _ 010 only
  • Cost Centres only to be opened by Finance Office
  • These cost centres are reserved exclusively for Finance Office transactions. The local distribution of allocations within the department, for example the sub-allocation of the general account allocations to individual teaching and research accounts, must be done through DEXP cost centres.
  • Research Overhead Income allocations (ie the full Central allocation before any local allocations to individual cost centres)
  • Research, Training and Support Grant (RTSG) allocations

CCON - Cost Contributions

  • Used in Budget Pro-forma Heads: 4b
  • Cost Centre Pattern: B _ _004 only
  • Cost Centres only to be opened by Finance Office.
  • These cost centres are reserved exclusively for Finance Office transactions. The local distribution of allocations within the department, for example the sub-allocation of the general account allocations to individual teaching and research accounts, must be done through DEXP cost centres.
  • Research Staff cost contributions (eg Technician pool costs from Research Council grants, academic support funding from Teaching Company Schemes)

DEXP - Departmental Expenditure

  • Used in Budget Pro-forma Heads: 5 and 7
  • Cost Centre Pattern: B _ _ 100 to 999
  • Cost Centres opened at departments discretion
  • Expenditure associated with departmental maintenance
  • Non-profiled staff costs
  • Teaching expenses, whether by level, course or module, provided that there is no carry forward of unspent balances from one year to the next
  • Research expenses, where there is no carry forward of unspent balances from one year to the next
  • Distribution of allocations within the department, for example the sub-allocation of the general account allocations to individual teaching and research accounts. Where these local allocations aredevolved to members of staff within the Resource Centre, any unspent allocations at the end of one financial year will not carry forward to the next. Any local allocations to Personal Accounts where the member of staff has discretion to carry over unspent balances from one financial year to the next should be accounted for under PERS.
  • Departmental facilities for teaching and research
  • Departmental services and administrative support costs
  • Departmental stores
  • It would be expected that all balances on individual cost centres under this Analysis Code would be closed-off at the end of the financial year to a single Resource Centre reserve fund.
  • NOTE: These cost centres should not receive any third party income arising by way of cash receipts or the issue of sales invoices, except where such receipts strictly relate to the reimbursement of costs (eg. photocopying charges or field trip expenses paid on behalf of students). Therefore, no income relating to the external provision of services should be credited to these Heads.Supplies of services should be recorded through the University’s Other Services Rendered ‘J’ Ledger. This is administered by the Finance Office following the same principles as the Research ‘R’ Ledger. Supplies of services for this purpose would encompass, for example, consultancy, testing and short course/training activity.

PERS - Personal Accounts

  • Used in Budget Pro-forma Heads: 8
  • Cost Centre Pattern: B _ _ 100 to 999
  • Cost Centres Opened at departments discretion
  • Controlled by individual members of staff (ie Personal Accounts), and where unspent balances maybe transferred from one financial year to the next. Any such accounts where there is no carry forward from one financial year to the next should be classified under DEXP (above). Individuals may hold one or more such accounts.
  • Accounts may receive local allocations of funding or miscellaneous 3rd party income (ie that which arises by way of cash receipt or issue of official University invoice) provided that no supply of a service is involved. Supplies of services should be recorded through the University’s Other Services Rendered ‘J’ Ledger. This is administered by the Finance Office following the same principles as the Research ‘R’ Ledger. Supplies of services for this purpose would encompass, for example, consultancy, testing and short course/training activity.
  • All balances held against cost centres under PERS are ultimately under the control of the Head of Resource Centre, and taken together with the balances under ALOC, CCON, OINC and DEXP will form the total Discretionary Funds of the Resource Centre.

NOTH - Non-departmental - Other

  • Used in Budget Pro-forma Heads: 9
  • Cost Centre Pattern: B _ _ 001 to 099
  • Cost Centres only to be opened by Finance Office
  • Controlled at the Departmental level and will be used where there is a need to capture 3rd party income (ie that which arises by way of cash receipt or issue of official University invoice) provided that no supply of a service is involved. Supplies of services should be recorded through the University’s Other Services Rendered ‘J’ Ledger
  • The use of cost centres under this Analysis Code are expected to be limited
  • Internal allocations to these cost centres would not normally be expected
  • The directly related expenditure of such activity will be recorded here, and any “surplus” which crystallises will be transferred to DEXP. Unspent balances may therefore transfer from one year to the next, and there may not necessarily be any “surplus” to transfer at completion. On the other hand, cost centres under this Analysis Code should not be in deficit at the year end.

NALL - Non-discretionary Allocations

  • Used in Budget Pro-forma Heads: 9
  • Cost Centre Pattern: B _ _ 001 to 999
  • Cost Centres only to be opened by Finance Office
  • Where there is a need to monitoring expenditure associated with awards of funding by the University’s Central Research Committee or any other similar allocations that may be made from time to time.
  • Each award by the Research Committee will be accounted for through a segregated cost centre, which will record both the allocation and related expenditure
  • Unspent balances maybe transferred from one financial year to the next. However, any sum not required for the original purpose of the award will revert to the Committee. The Committee may also reserve the right for any unspent balance to revert if the award is not fully expended by a given date.

NFUN - Funding Council Specific

  • Used in Budget Pro-forma Heads: 10
  • Cost Centre Pattern: B _ _ 001 to 099
  • Cost Centres only to be opened by Finance Office
  • For all specific non-recurrent or capital grants from HEFCW which require separate monitoring and recording. Examples include Academic Infrastructure, project funding for Teaching Quality Excellence, Research Infrastructure, JISC etc.
  • Each award will be accounted for through a segregated cost centre, which will record both the allocation and related expenditure.
  • Unspent balances maybe transferred from one financial year to the next. However, any sum not required for the original purpose of the award will revert to the University centrally or HEFCW as appropriate. HEFCW may also reserve the right for any unspent balance to revert if the award is not fully expended by a given date.