ucl finance reporting project

UCL Finance Reporting Project

Group 2

20 Aug – 1 Sept 2008

UCL Finance Reporting ProjectBusiness Objects Planning (BOP)

Rollout Training

CRH v1.0

BOP Rollout Training Session

Presenters:

Ian Davis, Management Accountant (RAM & Systems)

Caroline Hibbs, Assistant Director (PMA)

Training Session Support:

Jonathan Thompson, Project Manager

Session Duration: 09.30 to 13.00, Tea/Coffee Break: 11.00

Location:

Training Room, Second Floor

UCL Union

Huntley Street


Slide 1

BOP Rollout Training Group 2


German Amy Brownhill

Scandanavian Studies Stephen Cadywold

Gatsby Computational Neurosciences Unit

Alexandra Boss

Population Health Paul Phibbs

Population Health Marcella Maccann

Surgical & Interventional Sciences Chris Brew-Graves

Surgical & Interventional Sciences (NMLC)

Sarah Green

Slide 2

Participating Departments

• to introduce the Financial Reporting Project to departments

• to introduce the reporting calendar

• to look in detail at the standard quarter update process

• to explain the role and responsibilities of departments in the process

BOP Rollout Training

Today’s objectives are threefold:

• to introduce the Business Objects Planning tool and BOP Workbooks

• to equip department users with the basic skills and knowledge to participate in this controlled reporting update process

• to provide an initial training forum for users to practice, ask questions, get answers, clarify understanding

• to inform departments and elaborate on other developments, changes and enhancements to existing financial processes

• to open a dialogue with departments


Slide 3

Overview of Financial Reporting Project, Reporting Process and Roll-Out.

• refer to slide pack (pages 5 to 13).

BOP Rollout TrainingThe order of the morning looks something like

this:

Intro to Business Objects Planning (BOP) and an initial walk around the BOP Workbooks.

• refer to slide pack (pages 15 to 18).Talk through what will be required from departments

• refer to slide pack (pages 19 to 21).


Slide 4

Hands-on practice and walk through of the various data entry processes, introduce new budget journal process, illustrate worksheet validation rules and process control management

• refer to BOP Training Manual, slide pack (pages 22 to 23). Illustrate BOP report outputs and current suite of reports

• refer to BOP Training Manual.

Session wrap-up

• Feedback (slide page 24), Top 10 Tips, BOP Instructions

• refer to slide Appendices (pages A1 – A12), Training Manual

• to implement a robust, integrated and automated reporting system capable of producing regular and accurate financial management information on which our business decisions can be based

• to facilitate the strengthening of financial routines, account management processes and reporting responsibilities at department level

• to introduce improved collection, preparation and review processes for budget, forecast and actual data

The primary objectives of the Financial Reporting Project are:

For departments this brings:

• access to more accurate and timely reports of divisional and departmental activities

• improved control at divisional and departmental level of use of available funds

• forecasting and future year planning undertaken in a controlled environment


Slide 5

Project Objectives and Department Benefits

System Specification

Initial System Design and Testing

Pilot 1

Implementation

Pilot 2

Department Roll-Out

Revision of Period End Financial

Processes

Project Overview

Feb 2007

Revision of Account Code Creation &

Maintenance Process

Review and Cleansing of Chart

of Accounts

Dec 2008

Communications Strategy

FRP User Group

FRP User Consultation Group

FRP Website

FAQs

Newsletters

Group 1 Group 2

Group 3 Group 4

Group 5


Slide 6

Introduction to Reporting Update Processes

Annual Reporting Calendar

Standard Data Update Processes

Standard Budget/Forecast

Update Process

How the reporting processes fit together over the annual period (Slide 7)

Introducing the various data update processes and how they fit together over a reporting period (Slide 8)

What happens in a budget/forecast update process and how departments fit into the process (Slide 9)

We take a look at…

Roll-Out of Reporting Processes

How your department is brought into the reporting processes (slide 10-12)


Slide 7

AUG

SEPT

OCT

NOV

DEC

JAN

FEB

MAR

APR

MAY

JUN

JUL

Quarterly

Forecast

Process

Budget

Process

Period End

Reporting

Prepare BudgetsConsolidate &

Finalise Budgets

Prepare Q1

Forecast

2+10

Prepare Q2

Forecast

5+7

Prepare Q3

Forecast

8+4

Prepare End Q1 Reports

Prepare End Q2Reports

Prepare End Q3Reports

Finalise Year End Accounts

Annual Reporting Calendar

Prepare YE Accounts

Finance

Committee

Budget Approval

End Q2, Hefce Grant

Year EndAccounts Approval

SMT

End Q3 Update,Budget Sign Off

End Q2 Update

End Q1 Update

Prepare End Q4 Adjts

Example


Slide 8

Entry

In Year Adjustments

Allocations & Reserves

Workbooks

Standard Data Update Processes

WEEK 1

WEEK2

WEEK 3

WEEK 4

MTH 2

MTH 1

MTH 2

MTH 1

QUARTERLY FORECAST UPDATE

Departments enter forecasts, allocation, reserve adjustments

Departments update forecasts, allocations, reserve adjustments on individual accounts as required

Finance/Faculties enter allocations, transfers of reserves for upload to department accounts

MONTH 3 OF QUARTER PERIOD

Departments update forecasts, allocations, reserve adjustments on individual accounts as required

STANDARD QUARTER PERIOD

Start of New Quarter


Slide 9

Facu

ltie

sD

ep

tsD

ep

ts

FIN

AN

CE

Auto-Populate

BOP Templates with Future Year Budget

Issue Budget/

Forecast Entry

TemplatesTo Faculties/Departments

Return Dept Approved

Templates to Faculty

ApproveBOP Budget/Forecasts

Upload BOP Budget/

Forecasts to FIS

FA

CU

LTY

Review & Amend

Income and Expenditure

Budgets/Forecasts

Auto-Populate

BOP Templates with Period

To Date Actuals

Standard Budget/Forecast Update Process

Budgeting Process

Forecasting Process

DEP

T

Review/Approve

Dept Templates

Return Approved

Templates to PMA

Review & Amend

Income and Expenditure

Budgets/Forecasts


Slide 10

What we want you to do now ….AUGUST

2008Review/amend the 2008-09 Budget baseline positions for your designated range of accounts in the light of latest data and other local information

You’ll be provided with the following data for each account…

2006-07 ACTUAL

2007-08 BUDGET

2007-08 FORECAST

2008-09 BUDGET

Variance 2008-09 Budget to

2007-08 Forecast

+ 3%

+ 3% 11 mths Actuals + 1 mth Budget

If you have time, you can review forward budgets in the light of your 2008-09 changes

The 2008-09 Faculty Allocation will be pre-loaded to the department recurrent grant accounts. The data you enter will be loaded into FIS as your 2008-09 budgets for the new budget year.

Roll-Out of Reporting Processes


Slide 11

August 07 – June 08

July 07

+ 6%

OCTOBER 2008

The Q1 Forecast Update process begins following the September 08 month end, likely to be closed by Friday 3RD October.

And then in ….

The Q1 Forecast Update will involve the departments who participated in the 2 pilots and departments of Roll-Out Groups 1 and 2.

Roll-Out of Reporting Processes cont.


Slide 12

You will be required to carry out the following:

• Review 2008-09 Budgets

• Review 2008-09 Actuals To Date (2 months)

• Revise 2008-09 Forecasts

Roll-Out Preparation Departments Training

Sessions

FIS Month End Closure Date

BOP Workbooks Build Process

Wednesday 20th August to Monday 1st September 2008

Not Applicable for Group 2

Friday 5th September 2008

Roll-Out Update ProcessDepartment Entry &

Approval Process

First Level/Faculty Review & Approval

Process

Second Level/Finance Review & Approval Process

Monday 8th Sept to Tuesday 16th Sept 2008

Wednesday 17th Sept to Tuesday 23rd Sept 2008

Wednesday 24th Sept to Friday 26th Sept 2008

7 working days

5 working days

3 working days

3 weeks in total

Roll-Out of Reporting Processes: Group 2 Timetable


Slide 13

Represents the maximum time allocated to the department process and not the amount of time required to undertake process actions

• logging on and logging off

• opening and exiting from a workbook

• navigating around the workbook

• entering and saving data and comments

• entering new accounts

• selecting and changing standard planning methods

• entering worksheet allocation and reserve adjustments

• printing workbooks

• approving the workbook and submitting to the next stage of approval

• actioning in year adjustments

Introducing Business Objects Planning:


Slide 14

Entry Worksheet Templates


Slide 15

The entry worksheet displays a series of standard templates, one per account code.

The account template has a number of standard rows which apply to all accounts (Slide 15), relating to the following fields of the ledger:

The account template displays additional rows for those accounts which record income or receive allocations as their source of funds (Slide 15).

• Summary by Source Total

• Summary by Account Total by Source Total

The summary worksheet is a view-only worksheet, displaying the following summaries of the entry worksheet data:

• the budget field (brought forward reserves and reserve adjustments).

• the primary expenditure fields (staff costs, other operating costs, capital transactions).

The columnar format of the account template is standard for all accounts displayed.The cell formats of the worksheet are fixed and cannot be changed by users.

Summary Worksheet

The account templates are ordered as follows:• By Budget Manager

• By Source

Entry Worksheet Row Formats


Slide 16

The account template contains a number of standard rows which apply to all accounts: Summary Row Category Detailed Rows

Reserves (see A5) Brought Forward Reserves

Reserves Posted

Reserve Adjustments

Funds Available

Staff Costs

Other Operating Expenses Other Expenses

Inter-departmental recoveries (see A7)

Inter-departmental charges (see A7)

Equipment > £25k (see A8)

Contribution to Capital Projects (see A9)The following additional rows appear for qualifying accounts and sources

only: Summary Row Category Detailed Rows

Allocations Allocations

Allocation Adjustments

Income (see A6) Tuition Fees – Other Fees

Other Services Rendered

Donations & sundry grants

Health Authorities

Other Income

Endowment Income

Expenditure does not determine whether an account is material as any expenditure entry is always deemed to be matched by either or a combination of the 3 key materiality criteria - reserves brought forward, allocation, and annual income.

MaterialityA material account is one which has:

• a brought forward balance of > £50k OR

• an allocation of > £50k OR

• annual income of > £20k OR

• a brought forward deficit balance of > £5k. If an account fulfils any one of the above criteria, then the account is flagged GREEN and the materiality label is YES at the top of the account. An account can become material when data entered by departments meets any one of the materiality criteria.

To note:


Slide 17

Income Row Formats

Account income is shown by summary analysis group. Each analysis group has been mapped to one or more source codes. The source code of the account determines therefore which income lines appear in the account template.

Income recorded against an analysis group that is not linked to the account source code, will be shown under a separate line called Income Exception. No forecast data can be input against this line. (see A6)


Slide 18


Slide 19

Departments will be responsible for entering adjustments to account reserves and allocations in line with the current source code framework rules.

All department control accounts (Budget, Research, and Balance Sheet) are excluded from department workbooks.

Department Actions

The source code of each department account will determine the type of income and expenditure forecast update required.

Faculty Offices and Finance retain responsibility for populating the Budget and Research Activity income and expenditure control accounts for each Faculty.

Expenditure only updates are required for budget accounts, accounts funded by central distributions, and department reserve accounts. Income and direct expenditure updates are required for the remaining department activities.

Finance and Faculty Offices retain responsibility for populating the allocation fields and for actioning reserve adjustments of accounts whose activities are ring-fenced or subject to special funding arrangements.

Funds Adjustments (Slide 20)

Validation rules have been built into the Entry Worksheet accordingly.

Control Accounts

Data Updates (Slide 19)

Budget/Forecast Processes: Data Update Actions by Departments DEPARTMENT BUDGET/FORECAST DATA ACTIONS SOURCE CODE AREAS

DIRECT EXPENDITURE ONLY SOURCE 1 : BUDGET ACCOUNTS

SOURCE 2 : SRIF ACCOUNTS

SOURCE 3 : RTSG ACCOUNTS

SOURCE 4 : TRUST FUND ACCOUNTS

SOURCE 7 : DEPARTMENT RESERVE ACCOUNTS

SOURCE 9 : DCCO CAPITAL CAMPAIGN ACCOUNTS

SOURCE B : RCSTF ACCOUNTS

SOURCE W : INTERNAL TRADING

SOURCE X : UCLCL TAXABLE TRADING

INCOME AND DIRECT EXPENDITURE (EXCLUDING INDIRECT COSTS) SOURCE 3 : NON RTSG ACCOUNTS

SOURCE 5 : GENERAL DONATIONS (CLOSED)

SOURCE 6 : SPECIFIC DONATIONS (CLOSED)

SOUREC 8 : TRADING (CLOSED)

SOURCE 9 : NON DCCO CAPITAL CAMPAIGN ACCOUNTS

SOURCE G : HOSPITAL SERVICES

SOURCE H : SHORT COURSES AND CONFERENCES (NON-COMMERCIAL)

SOURCE J : SHORT COURSES AND CONFERENCES (COMMERCIAL)

SOURCE P : PRIMARY PURPOSE TRADING

SOURCE X : NON UCLCL ACTIVITY TAXABLE TRADING

NO ACTION SOURCE 0 : DEPARTMENT BUDGET/RAM CONTROL ACCOUNTS

SOURCE A : RESEARCH PROJECTS GENERAL LEDGER CONTROL ACCOUNTS

SOURCE Y : INCOME & EXPENDITURE SUSPENSE ACCOUNTS


Slide 20

Source code with more than one type of data update action

Allocations and Reserve AdjustmentsThe Table below sets out the budget field entries and who is responsible for populating these fields BUDGET FIELD ENTRY SOURCES ACTION BY

ALLOCATIONS SOURCE 1

SOURCE 2

SOURCE 9

SOURCE B

FINANCE/FACULTY

FINANCE ONLY

FINANCE/DCCO

FINANCE/GRADUATE SCHOOL

RE-ALLOCATIONS SOURCE 1 DEPARTMENTS

RESERVE ADJUSTMENTS WITHIN SAME SOURCE CODE

ALL SOURCES

Excluding Source 0,2

DEPARTMENTS

RESERVE ADJUSTMENTS BETWEEN SOURCES

(CURRENT SOURCE TO SOURCE 7 ONLY)

SOURCE 3

SOURCES 5,6,8

SOURCES H,J

SOURCE P,X,W

DEPARTMENTS

RESERVE ADJUSTMENTS BETWEEN SOURCES

(CURRENT SOURCE TO SOURCE 7 OR OTHER RESERVES)

SOURCE 1

SOURCE 2

SOURCE 9

SOURCE B

SOURCE G

SOURCE Y

FINANCE ONLY

DEPARTMENTS


Slide 21

• restricting write-access to the owner of the current stage

• a history log that tracks progress through the stages

• a system override facility for Finance to enable a change of owner and change of stage to take place to meet the due completion dates

Introducing Ownership and Process ControlEvery update process performed by departments, whether part of the formal quarterly reporting

update or outside of this, is underpinned by the principles of ownership and control

The BOP Update process has 4 key stages: • Department Entry

• Faculty Approval

• Department Approval

• Finance Approval

Each stage must be assigned to an owner and allocated a due date for completion

The owner is responsible for ensuring that that the stage, comprising an entry and/or approval process, is completed by the due date

Once the stage is completed, the owner is required to advance the ownership of the process to the next stage and to the next owner

Control is maintained throughout the process by…


Slide 22

OWNER STAGE

Department

FinanceBuild of

Workbooks

Entry

Faculty Approval

Finance Approval

Finance FIS Upload

TIME

Working Day 1

Working Days 2-8

Workings Day 9-13

Working Days 14-

16

Overnight Day 16

Release

Advance

Advance

Return

Return

CONTROLS

Workbook History Log

Process Control

Manager

Process Control

Advance

Override


Slide 23

• any problems encountered with the workbook, the process both within and outside BOP

• any suggestions in respect of process improvements

• any other issues arising from the process.

Problems during the Roll-Out

• [email protected]

• call the BOP support phone number – ext 48336.

For both practical help on using the workbook and for problems such as accessing, data corruption, data views, and staff absences, you can contact…

Feedback on the Roll-Out:

A feedback template will also be issued to users at the start of the roll-out and departments are asked to record…


Slide 24

A1. UCL Operating Budget and RAM - principles

A2. BOP Pre-Populated Budget Data: Budget Control Accounts – 2008-09

A3. BOP Pre-Populated Budget Data: Non-Budget Activities – 2007-08

A4. BOP Pre-Populated Budget Data: Non-Budget Activities – 2008-09 and future years

A5. Reserve Adjustments and In Year Adjustments

A6. Income Exceptions

A7. Inter-Departmental Charges and Recoveries

A8. Equipment over £25k

A9. Contributions to Capital Projects

A10. Inter- Department Transfers (IDTs)

A11. Setting Up and Closing Accounts

A12. New Account Code Creation and Maintenance Process


List of Appendices – Supplementary Training Material

UCL OPERATING BUDGET AND RAMUCL accounts are categorised into two primary groups, those that are part of the UCL Operating

Budget and those that are deemed to be self-financing activities.

• Income: Hefce grant, Academic Fees, Research and Other Overhead Recoveries, Property income, Interest receivable

• Expenditure: Core Staff Salaries, Estate maintenance, Other Property costs, Interest payable.

• Budget activity is recorded in accounts set up under Source 0.

The Operating Budget also shows as a charge on its income the amount of additional allocations to Academic and CSS departments to support operational activities. These are allocated to department accounts under Source 1.

Departments are not responsible for updating the RAM/Operating Budget positions reported under Source 0 accounts or for updating the allocation sums under Source 1. These are the responsibilities of the Faculty Offices. Departments are only responsible for ensuring that the allocation sums are properly re-allocated to accounts within the department Source 1 range and for budgeting and forecasting the annual expenditure to be incurred against these funds.


A1

Departments will be responsible for the majority of the budgeting and forecasting of their self-financing activities recorded outside of Source 0 and 1.

The Operating Budget comprises the primary income and expenditure streams of UCL:

The RAM allocates and analyses the primary income and expenditure streams and cash costs across the Academic departments. Matching income and expenditure estimates for department self-financing activities are also included in the UCL RAM.

Budget Update Responsibilities

The RAM report data is compiled from budgets and forecasts produced by Finance and the Faculty Officers. The budget/forecast data in respect of self-financing activities is compiled at a summary level only.

The table below details how the BOP budget data has been derived for UCL Budget/RAM department control accounts which are reported under Source 0 and details the actions required by the Faculties during the Budget/Forecast update process.

Control Account Budget Data provided by Finance Actions

HEFCE Grant 2008-09 RAM Budget None

Tuition Fees 2008-09 RAM Budget allocated on PY Actuals basis

FMA Review and Amend

Research Overheads 2008-09 RAM Budget allocated on PY Actuals basis

FMA Review and Amend

Support Cost Income 2008-09 Budget allocated evenly FMA Review and Amend

Short Course Levy 2008-09 Budget allocated evenly None

Consultancy Overheads 2008-09 Budget allocated evenly None

Staff Salaries 2008-09 SBF Budget None

Fees Waived Not populated FMA Review and Amend

BOP PRE-POPULATED BUDGET DATA: Budget Control Accounts

Research activity recorded in detail in the Research Projects Ledger is imported on a monthly basis into the General Ledger Department Control Accounts under Source A. Responsibility for reviewing and amending these positions lies with the Faculty Offices. The budget data for this activity has been derived as follows:Direct Income and Direct Expenditure 2008-09 RAM Budget allocated on PY Actuals

basis

FMA Review and Amend with reference to detailed grant data provided by Research Services


A2

2007-08 BOP INCOME AND EXPENDITURE BUDGET DATA

2006-07 ACTUALS 2007-08 RAM/BUDGET PROJECTIONS

ALLOCATED ON PY ACTUALS BASIS

SOURCE 2 SRIF CAPITAL SOURCE 5 GENERAL DONATIONS (CLOSED)

SOURCE 3 RESEARCH TRAINING SUPPORT GRANTS (RTSG)

SOURCE 6 SPECIFIC DONATIONS (CLOSED)

SOURCE B RESEARCH COUNCILS SKILLS TRAINING FUNDS (RCSTF)

SOURCE 7 DEPARTMENT RESERVES

SOURCE G HOSPITAL SERVICES SOURCE 8 TRADING (CLOSED)

SOURCE H SHORT COURSE & CONFERENCES (NON-COMMERICAL)

SOURCE 9 DONATIONS

SOURCE J SHORT COURSES & CONFERENCES (COMMERCIAL)

SOURCE P PRIMARY PURPOSE TRADING

SOURCE W INTERNAL TRADING SOURCE X TAXABLE TRADING

The table below details the 2 methods used to derive the 2007-08 BOP budget data and how they apply to the range of department self-financing source codes

BOP PRE-POPULATED BUDGET DATA: Non-Budget Activities – 2007-08


A3

FUTURE BUDGET YEAR HOW THE BUDGET DATA IS CALCULATED

2008-09 BOP INCOME AND EXPENDITURE BUDGETS

1 MONTH 2006-07 ACTUALS (JULY2007) PLUS 11 MONTHS 2007-08 ACTUALS (END JUNE)

PLUS 3%


2008-09 BOP BUDGET PLUS 3%





The table below details how the future year BOP budget data is derived for the range of department self-financing source codes

PRE-POPULATED BUDGET DATA: Non-Budget Activities - 2008-09 and future years


A4

Reserve Adjustments

Each account template in the Entry workbook shows the account reserves broken down into the following:• the brought forward reserves as at the start of the financial year,

• the posted reserves, adjustments approved in previous updates of the current period, • the reserve adjustments, adjustments to be approved in the current update process.

Departments are able to increase or decrease the overall account reserves, i.e. transfer account funds, by entering the appropriate value against the reserve adjustments line in each account.• this adjustment requires an equal and opposite entry against one or other department accounts in order for the adjustment to be validated, approved and therefore saved to the database.

• these values are then uploaded into FIS as ZZ1 budget journal transactions at the end of each update process.

• reserve adjustments can only be actioned for the CURRENT month. Future months are greyed out and values should not be entered against these cells.

Outside of the BOP Forecast process, interim transfers of funds/reserves can be actioned using the IN YEAR ADJUSTMENTS Template. Adjustments…. • are subject to the same approval process as during the BOP Update process

• require approval by Faculty Offices

• must comply with the source framework rules unless subject to an exception approval by Finance.

• once approved, are uploaded to FIS overnight


A5

BOP Forecast Process

BOP In Year Adjustments

Each account is assigned a source code which defines its source of income/funding, e.g. Source 9 Donations,

or, in certain cases, its activity type, e.g. Source P Primary Purpose Trading.

Each source code needs to be linked to a range of qualifying income analysis codes, with the exception of expenditure only sources, e.g. Sources 1, 2, 7, B, which need to be linked to expenditure analysis codes only.

All other sources should record income which accords with the source definition and the range of income analysis codes available for use with each source will be restricted on this basis.

Income ExceptionsHow the segments of the code framework link

together…..

• qualifying income is recorded under its summary reporting category, e.g. Other Services Rendered. • non-qualifying income, recorded using an analysis code invalid for the source code, is shown as an Income Exception.• forecasts cannot be entered against these lines.

BOP has used this mapping principle in the build of the templates:

• from August 2008, a set of FIS validation rules will be applied for the first time which will control the mapping of the income analysis coding to the source code structure• Finance are currently undertaking a cleansing exercise to address material cases of income exception in the source code structure and to action the necessary changes to the department framework in consultation with departments. • Departments will need to take the appropriate steps to ensure that future income is recorded in the appropriate account/source code combinations.

What needs to be done to address this…


A6

Inter-Departmental Recoveries and Charges

Why are these transactions shown separately?

• activity that involves one department charging another department for the use of its equipment, facilities, services

• the supplying department recovers its costs

• the customer department is charged a fair price for its usage

The objective of these two separate lines is to capture internal trading activity in departments. Internal trading is defined as follows:

Internal trading should be recorded using a specific range of analysis codes:• for every charge there needs to be an equal and opposite recovery transaction

• the sum of all these transactions should always net to ZERO

• The activity is effectively eliminated from the consolidated books of account.

The issue of internal trading and how to account for this is still under discussion. It may be the case that this trading activity is not undertaken widely and is not material to any department, and therefore analysis of this activity should not be required within the workbook template. However, internal trading may impact at the departmental level in terms of the available funds to support its expenditure forecasts.

No decisions have been made as to any changes to the existing range of internal trading analysis codes, 7**. One key issue requiring development is the elimination issue and how we can ensure that the forecast recovery in one department’s books is matched by the forecast charge in the trading partner department’s books.


A7

Equipment over £25k

Why is this cost shown separately?

• Equipment costing more than £25k is deemed to be capital equipment and an asset.

• Equipment is capitalised at cost and recorded as a fixed asset on the balance sheet.

• Equipment assets are depreciated over their expected useful life, usually 5 years for non-research equipment purchases and the term of the grant for research equipment

When are we going to do this?• we will identify the capital equipment additions at each period end, and,

• calculate the additions to fixed assets, the depreciation charge, and any release of deferred grants in respect of research-funded equipment, and reflect the changes in the I&E.

How do we capture this information?• a new analysis code is to be created to capture actual equipment costs over £25k.

• departments are requested to budget and forecast separately its equipment expenditure over £25k.

Equipment over £25k is defined as follows:• a single invoice for one piece of equipment costing > £25k.

• an invoice for several pieces of equipment each costing < £25k but with the total invoice value > £25k.


A8

A single invoice value > £25k may be split across several account codes. BOP allows you therefore to enter a value < £25k against this line.

Contributions to Capital Projects

Why is this charge shown separately?

• we will identify the additions to fixed assets in respect of buildings and refurbishments at each period end, and,

• calculate the depreciation charge, and reflect the changes in the I&E

How do we capture this information?• a new analysis code is to be created to capture contributions to capital projects.

• departments are requested to budget and forecast separately for capital contributions.

Contributions to Capital Projects represent the following:

• the internal contribution that departments have agreed to make towards the funding of capital developments, including building and refurbishment projects.

• the charge for this contribution against existing department reserves


A9

Inter-Department Transfers (IDTs)This form has two specific uses for departments.

1. It is used to correct the posting of ACTUAL transactions ONLY recorded in the CURRENT financial year. Examples include:

• correction to the analysis code of an actual income or expenditure transaction

• correction to the account code of an actual income or expenditure transaction

• corrections can be within department cost centres or between department cost centres.

2. It is also used to post internal trading transactions between departments.• the supplier department enters the credit transaction against its account code using 7**

analysis.

• the customer department receives the IDT and enters the debit transaction against its account code using the same 7** analysis.

• the same 7** analysis code must be used for both the debit entry and the credit entry in order that the internal trading activity is “eliminated” on consolidation.

Departments are reminded that IDTs are NOT to be used to transfer balances between accounts


A10

Departments will be expected to plan and manage effectively any changes required to their account code framework in order that related changes to their financial activities can be reflected as early as possible and as accurately as possible in the next BOP Forecast Update.

It is expected that departments will adopt the practice of requesting account code changes during the period PRIOR to the start of a BOP Forecast Update and only in very exceptional circumstances request new accounts AFTER the start of a BOP Update.

Setting Up and Closing Accounts

BOP can only bring in accounts which already exist in FIS.

Departments may request the set up and closure of accounts ONLY in FIS.

This procedure currently requires departments to email [email protected] with details of their new account(s), proposed account change(s) or closure of account(s).

Once workbooks are issued at the start of a BOP Budget/Forecast process, departments can bring into their workbooks new accounts that have been set up in FIS since the issuance of the workbooks by using the new account facility at the end of the entry template.

New FIS accounts during the Budget/Forecast update process

ALL department accounts must exist in FIS.


A11

An efficient account code creation and maintenance system is central to the delivery of these expectations with the consequent impact on BOP Budget/Forecast Updates.

New Account Code Creation and Maintenance Process

This system will be web-based and is being developed with the objective of simplifying the code change process and improving the speed with which changes can be generated, bringing the service standard for actioning the department requests down to between 24 to 48 hours.

Implementation of the new web-based system will take place at the earliest opportunity in the 2008-09 financial year.

The system process for creating codes within FIS itself has been re-developed and this much improved process is now in place and is making a tangible impact upon service levels.

Departments are advised to continue to request account code changes at the very earliest opportunity pending the launch of the new system.


A12

A new procedure and system for account code creation and maintenance is under development.

ucl finance reporting project

Documents

reporting process

reporting responsibilities

reporting calendar

project objectives

bop training manual

bop workbooks

slide pack pages

bop rollout training