Departmental accounts hold any funding and expenditure which is not a research grant.
Each account is made up of a code string.
Example:
U = University
PN = Department of Veterinary Medicine or
PP = Veterinary Hospital
PNLI = the activity (known as cost centre)
AAAA = This relates to the funding source (known as a source of funds)
ELKZ = the type of expenditure (known as a transaction code) or
LFAA = the type of income (also known as a transaction code)
0000 = this part is known as the spare and not currently used
The account code would be written down as:
U.PN.PNLI.AAAA.ELKZ.0000
Cost Centre
Each ‘cost centre’ is managed by an individual/s in the Department/Hospital who have authorisation rights for the funding it holds. They are responsible for ensuring the expenditure charged does not exceed the funding, and that the transactions do not contravene the University’s Financial Regulations, or requirements laid down by the originator of the funding.
Source of Funds
Each ‘source of funds’ represents where the funding originated. It could be e.g. external trading (i.e. the provision of goods/services, including consultancy), the Chest (HEFCE funding), training grants, donations, trust funds. Income must not be moved around from one source of funds code to another. It must remain in the appropriate accounting code. The Department/University can be called upon to explain and justify its usage as well as reporting to regulatory bodies. Often there are restrictions placed upon funding to which we must adhere and for which we must provide an audit trail.
Transaction Code
All regular expenditure codes begin with the letter ‘E’. The remaining letters represent how the expenditure is classified into its type. We are encouraged to ensure that we are consistent with the expenditure code we use for specific goods/services. This allows us to monitor expenditure and manage where we spend out funding. It facilitates reporting on expenditure types for the University, providing spending pattern and consumption data with which to negotiate discounts and favourable terms with suppliers. All regular income codes begin with the letter ‘L’. The remaining letters represent how the income is classified into a type. We are encouraged to ensure that we are consistent with the income code used to aid reporting on income streams.
New Departmental Account
Individuals may request a new Departmental Account by completing the ‘New Account’ form (see panel for link). Where possible, this form should be completed and submitted to the Assistant Secretary, Finance & Research, in advance of the funds being generated and expenditure incurred.
Incurring Expenditure before income is received
There are occasions where expenditure is incurred before income is received e.g. if we are to invoice another Department or outside organisation/individual for costs incurred. In these circumstances, the Assistant Secretary, Finance & Research should be contacted BEFORE the expenditure is incurred in order that an account can be set up in advance. Expenditure should not be charged to research grants as a temporary measure under any circumstances, as this breaches our contract with the sponsor.