Appendix A
Cost Centre Analysis Code 4 - Budget Pro-Forma Heads for Academic Departments
Quick Reference Guide
ALOC - General Account Allocations
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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
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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
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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
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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
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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 are devolved 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
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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 3 rd 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
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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 3 rd
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
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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
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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
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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.