F – E.2.7
FINANCE DEPARTMENT
BALANCE SHEET ACCOUNTS
Introduction
1.
The monitoring and reconciliation of balance sheet accounts is a key task undertaken by the
Finance Department. The object of regular, i.e. monthly, monitoring and reconciliation is:
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To identify and correct miscodings promptly
To ensure budgetary reports to departments are accurate
To ensure budgetary reports to VCAG and the Finance Committee are accurate
To ensure the debtors and payments ledgers are up-to-date
To assist in preparing the financial statements to timetable
To ensure problems are identified early and referred to the Director of Finance and/or the
Finance Committee as appropriate.
Types of balance sheet codes
2.
The following describes the various types of balance sheet codes:
control accounts
- used to control balances with subsidiary ledgers such as
payroll, sales, purchase.
suspense accounts
- used to record revenue transactions on a temporary basis,
e.g. unidentified income account
holding accounts
- used to hold balances on behalf of third parties e.g. pension
contributions.
Other balance sheet accounts
- the categories are included as appendix A.
Monitoring
3.
The monitoring of control and holding accounts is delegated to the Senior Assistant Directors of
Finance who must ensure that:
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All relevant staff in their section are aware of the importance of monitoring and reconciling
control and holding accounts
A list of current control and holding accounts is maintained
Control accounts are balanced to their respective ledgers and subsidiary systems
Control and holding accounts are reconciled monthly and the reconciliations duly evidenced
and signed
Accounting procedures for establishing, monitoring and reconciling control and suspense
accounts have been documented.
The Director of Finance is informed immediately of any significant problems encountered
in reconciliations.
List of control and holding accounts
4.
The following ranges must be used for 4th, 5th and 6th characters of the nominal code:001 to 100
101 to 200
August 2007
Salaries
VAT and other
201 to 300
301 to 400
501 to 600
701 to 800
901 to 949
5.
Income and Cash Office
Payments
Academic Support
Technical
Purchasing
A list of control and holding accounts as at August 2000 is available from the Finance
Department.
Opening new codes
6.
A form (F-E.1.6) should be completed for each new nominal code opened and authorised by the
appropriate Senior Assistant Director of Finance
Other accounts
7.
All other balance sheet codes should be reviewed on a monthly basis to ensure that any
miscodings are identified and corrected promptly.
8.
Particular attention should be paid to the following categories:cash accounts (bank reconciliation)
prizes and endowments
short term deposits
capital schemes work in progress
loan accounts
August 2007
BALANCE SHEET
Fixed Assets
50
51
52
53
Freehold land and buildings
Equipment
Investment in subsidiary and associated companies
Investments in CVCP Properties
Endowment Asset Investments
54
Fixed interest stocks
55
Equities
56
Bank balances held by investment managers
57
Bank balances held by the University
Current Assets
60
Stocks and stores in hand
61
Debtors
62
Prepayments and accrued income
63
Short term deposits
64
Cash at Bank and in hand
Creditors: Amounts falling due within 1 year
70
Creditors
71
Social Security and other taxation payable
72
Accruals and deferred income
73
Bank loans for capital schemes
74
Bank overdraft
Creditors: amounts falling due after more than 1 year
75
Bank loans for capital schemes
Provisions for Liabilities and Charges
76
Early retirements
Deferred Capital grants
77.
Funding Council : Buildings
78
Funding Council : Equipment
79
Other : Buildings
80
Other : Equipment
Endowments
81
Capital
82
Revenue
Reserves
90
91
August 2007
Income and Expenditure Account
Unexpended balances