Finance Chart of Accounts Workshop 22 nd May 2015 UCL SCHOOL OF LIFE AND MEDICAL SCIENCES.

Finance Chart of Accounts Workshop22nd May 2015

UCL SCHOOL OF LIFE AND MEDICAL SCIENCES

Chart of Accounts Workshop 22nd May 2015Agenda

Topic start Duration Presenter

Introduction 10:10 5 Nicola ArnoldPTAE 10:15 45 Ian Davis/Elizabeth FrancisCoffee & grp exercise 11:00 20 Susan McPheatCommon Problems 11:20 15 Susan McPheatAuthorised signatories 11:35 15 Nicola ArnoldRoles/New Starters 11:50 35 Lee JennerAxiom reports 12:25 25 Marion AtkinsonQuestions 12:50 10

PTAE

Elizabeth Francis and Ian Davis


Overview - PTAE

• One CoA for core, research and other• Matrix structure for management and reporting• More in-built controls e.g. VAT• More consistency of coding• Projects are linked in a hierarchy

Hierarchy

University

Schools & VP’s

Faculties

Divisions/Institutes

Sub-Departments

For example:

UCL

SLMS

Faculty of Life Sciences

Division of Biosciences

Department of Cell and Developmental Biology

GEE, NPP, SMB

SoP, SWC, GCNU, MRC LMCB, CTFU

FBS, FPHS, FMS

BEAMS, SLASH, IoEVP’s – Research, Health, Education, International etc

PTAE – every transaction has one!

• Project – provides separate reporting of income and expenditure.

• Task – can be used for greater detail. • Award – funding. • Expenditure – classification.

Project Types – Research

• Sponsored Research – project grants, fellowships, capital awards

• Doctoral Training - studentships• Projects managed by Research Services • Set up based on grants awarded

Project Types - Activity

• Organisation Unit – used for general departmental activity

• Course – for specific costs incurred on course administration

• Service - used for a service provided by UCL• Event – used for an event related activity• Naming Convention

– Org Unit Description– E.g. F96 Confocal Microscope

Project Types - Individuals

• Academic – for income and expenditure related to a specific academic

• Student – for income and expenditure related to a student where reporting cannot be satisfied by other student systems

• Naming convention – Org Code (last name, first name up to 14 chars) UPI– E.g. F36 Hill, Jonathan JMHIL80

Project Types - Other

• Holding Account – Each division/institute is responsible for their own– for automatic transactions without a valid code– Must be cleared to 0

• NHS Billing – – For staff salaries recharged to the NHS– Managed by central NHS billing team– Should net to 0

Tasks – Sponsored Research

• Tasks allocate awarded budget• D- tasks are directly charged non-pay• S- tasks are directly charged salaries• X- tasks are indirectly charged• Indirect charging requires intervention to charge

costs to project– E.g. X-HEF charges are based on submitted

timesheets.

Task – sponsored research

• A transaction is allocated to a grant budget line based on the selected Task.

• Expenditure Type classifies the transaction posted to the Task.

Awards


Split into Award Types– Core– NHS billing– Sponsored research– Donations– Endowments– Primary Purpose– Trading– Discretionary

Award Type - Core

HEFCE SI• HEIF KTC• HEIF Ent Awards• HEIF PoC• PG support scheme• CSLA

SLMS-Grand Challenges Studship

Impact Studentships UCL Funded

Grad Sch Skills Training

Pub Eng Burs

Provost Strategic Dev Fund

PS - Grand Challenges

UCL Core

VP Education/ Enterprise Awards

GRS Awards

Award Type - Core

Project Type: Organisation Unit Non Pay

Tuition Fees

Research OH

HEFCE

UCL Core

• UCL Core– Mostly Org unit Project type– Core Div activity

Holding Projects

Staff

Project Type: Holding Accounts

Award Type - Core

• Other Possible Core Awards (PSDF, Impact students, etc)– Mostly internal income– Must code legitimate costs to correct award

Award Type – NHS Billing

• Generally multiple awards per NHS Billing Project Type (i.e Per Academic)– Reflects different elements of salary– Depends on Invoicing requirements

• May have multiple awards for multiple funders

Award Type – Sponsored Research

• One award per research grant• Can be split across multiple projects

Donations Policy - Thresholds

• Gifts > £10k must go though DARO• Gifts > £100k further due diligence is required by DARO• Gifts > £1m must be referred to DARO in the first instance.

The decision of whether to proceed is made by the Director & Gift Acceptance Panel, with sign-off from the Provost

• Gifts processed through DARO are returned to the Division via the internal income expenditure type

• MUST stay in the PTA allocated by DARO

Award Type – Donations

• Unrestricted– Given for the general use (i.e. teaching and research

objectives)– Ideally used to offset core costs– Can’t defer

• Restricted– The donor specifies a particular purpose

– Prize– Scholarship– Chair– Area of research

– The donation is in response to a public appeal– Income can be deferred to match spend

Donations Scenarios

Scenario Action Award Award Type

Project

Donation is unrestricted

Use the generic Donation (Unrestricted) Award

Donation (Unrestricted)

Donation (Unrestricted)

Use:

- Department project;

Donation has a restricted use

Request the set up of a separate Award with donor name in title eg. Sarah Jones Prize

Sarah Jones Prize

Donation (Restricted)

At Div’s discretion. Use:

- Department project or;

- Request specific project ( NOT academic)

Award Type – Endowments

• Donations may be endowed if– Greater than £100k– Retained for more than 2 years– Greater than normal spend on an activity

• Individual awards for each endowment• All endowment awards are set up by Treasury• Should be one project to one award

Award Type – Endowments

Award Type Option to sell units Purpose restrictedUnspent income

carried to balance sheet

Non Endowed Funds P

Endowment (Expendable) P P P

Endowment (Perm Restricted) P P

Endowment (Perm Unrestricted) P

Award Type – Primary Purpose• No intellectual generation• UCLC• Trading with other HEI’s

• Short courses now core• Will be working with Divisions to transfer other PP activity

to core• Never transfer income (only surpluses once activity

finished)

Match Costs to Income

Award Type – Trading (UCLT)

• No intellectual generation• Trading with industry• Closed Courses• Sampling / Industry service provision

• Corporation tax• Never transfer income elsewhere (only surpluses) • Never post costs not relating to activity

Match Costs to Income

Award Type – Discretionary

• Trading/Primary Purpose not automatically transferred at year end

• Only Internal income accepted (eg. Royalties)• In time less need for discretionary• Large spend must be Budgeted

Other activity' Income and Expenditure April 15

Row Labels YTD Income YTD Expenditure YTD NetDiscretionary 0 6,634,147 (6,634,147)Donation (Restricted) 630,683 654,927 (24,244)Donation (Unrestricted) 2,063,025 2,221,691 (158,666)Endowment (Expendable) 901,500 1,704,542 (803,042)Endowment (Perm Restricted) 113,420 94,825 18,594Endowment (Perm Unrestricted) 3,689 713 2,976Non Endowed Funds 461,335 320,412 140,923Primary Purpose 15,231,890 9,177,210 6,054,680Trading (UCLT) 6,699,415 5,258,915 1,440,500Grand Total 26,104,957 26,067,383 37,574

SLMS

Matching Income and Expenditure

CORE• Income• Expenditure

Donations (Restricted)

• Income• Expenditure

Discretionary

• Internal income

• Expenditure

Project Type: Organisation Unit

• Activity must be Budgeted

Matching Income and Expenditure

CORE• Income• Expenditure

Trading• Income• Expenditure

Project Type: ServiceProject Classification: SRF

of PTA combinations have NEVER been used50%

CORE/Research/Other

Core Research OtherUCL Core Sponsored Research Primary Purpose

NHS Billings Trading (UCLT)Non Endowed Funds

Endowment (Expendable)Endowment (Perm Restricted)

Endowment (Perm Unrestricted)Discretionary

Doctoral TrainingDonation (Unrestricted)

Donation (Restricted)

Income and Expenditure Reports

Expenditure Types

• Every Requisition Line must be posted against a Project, Task and Award as a minimum

– For catalogue purchases, expenditure type is pre set– For non catalogue purchases, it’s essential the correct

purchasing category is chosen – this drives expenditure type

• Expenditure type covers both income and expenditure• Purchasing category helps drive VAT status

How do we automate the tax calculation?

• What? -- Expenditure Type, Award, Project, Product Category (Goods or Services)

• Why? -- Intended Use• Who? -- Supplier information• Where? -- Location of Supplier

The eTax Engine WILL be correct, every time……provided YOU enter the correct information

Things to watch out for;

1.(For a Non-Catalogue Request) The Supplier SITE you choose

2. (For ALL Requests) The ‘Intended Use’ will determine if any UCL Tax Exemptions apply

3.(For ALL Requests) The ‘Product Category’ property will help the Engine determine the rate of VAT

Don’t Forget: Garbage IN, Garbage OUT

Group Exercise

• Get your tea/coffee• Split into groups• Can you identify what the issues are with these

requests?

Common Problems

Susan Mcpheat


• Naming conventions and character length not within guidelines

• Project name requested includes reference to award e.g. Institute Primary Purpose Account

• Project name requested includes project manager• Donation or Trading awards requested attached to

academic type projects

Common Problems with PTA requests

Common problems continued

• Description says £z from X for Y• Description references award e.g. Prof A

discretionary• Central awards• UCLC• No indication of where income is to come

from/why project is needed

What we look for when we get a request

• Why does it need a separate project?• Why are we getting ourselves into a new Trading

activity?• Who are we providing this service to and why?• Where is the income expected to come from?• Are donations restricted or unrestricted?• Have donations gone through DARO?• Is there a need for this project now? • Materiality• Does the request make sense?

Authorised Signatories

Nicola Arnold


Who will approve my Request?

You can see who your Requisition will be forwarded to during the Checkout process.

…and after you have completed the Checkout process

The request will go to;

•All of the Authorised Signatories at the required level, unless…•One has been set up as the Preferred Approver (only they will receive the request)

Optionally, in Addition;

•If the Project has a Purchasing Manager, they will also receive the request. They will then have 5 days to approve the request.

Orders > £50k – Approval Fully On-Line

The Business Process remains the same.

However, iProcurement will notify all participating approvers when Checkout is complete

Orders > £50k – Attaching the Checklist

You will still need to complete the ‘Over £50,000 Checklist’ form.

The completed form must now be attached to the Requisition during Checkout.

Authorised Signatory

• Process will be handled through User Management Module

• DA acts as a requester• System routes request to approver

User Management: DA’s to request Authorised Signatories

User

DA

Auth Sig RequestiExp & iProc

Signature

SFD

FSO

Approve

Approve

Email Notification& Attachment

Authorised Signatories - New Levels and Limits

Authorised Signatories – New Levels and Limits

http://www.ucl.ac.uk/finance/policies-procedures/delegated-auth-limits

Authorised Signatory

• Authorised signatories apply to Income as well as expenditure

RolesProjectsNew Starterswww.ucl.ac.uk/finance/myfinance

http://www.ucl.ac.uk/finance/myfinance

System Roles

System Roles determine• the functions that a person is able to perform

using the system

• what appears on their MyFinance menu

Departmental Roles

Initial Roles

UCL Staff• Internet Expenses [Entering expense claims]• UCL iProcurement [Entering requisitions]• UCL IDT Orderer [Ordering internal goods and services]

UCL Student and Temp• UCL iProcurement [Entering requisitions]• UCL IDT Orderer [Ordering internal goods and services]

Additional Departmental RolesUCL Departmental Administrator• User Management [Administering users for dept]

(plus all responsibilities of UCL Local Finance Manager)

UCL Local Finance Manager and UCL Head Of Department• UCL Grants Dept Admin [Project key member management]• UCL IDJs [Transferring funds between local accounts]• UCL IDT Orderer Approver [Approving IDT orders]• UCL IDT Supplier Approver [Approving IDT supplies]• UCL AR Transaction Entry [Entering Sales invoices & credit notes]

(plus all responsibilitites of UCL Local Finance Administrator)

UCL Local Finance Administrator• Internet Expenses Help Desk [Viewing expense claims for dept]• UCL AR Enquiry [Enquiry of sales invoices, credit notes, receipts]• UCL AP Enquiry [Func : AP enquiry]

• (plus all responsibilitites of UCL Academic and Professional Services Staff)

UCL Academic and Professional Services Staff• UCL Grants Enquiry [PI & key member enquiry]

UCL AR Transaction Entry• UCL AR Transaction Entry [Entering Sales invoices & credit notes]

Access to Projects

In order to enter a transaction of any kind, people must have access to Projects• No access is given automatically• Every transaction must have a PTAE • Security is only on the Project (P) element

• Transaction controls restrict the PTAE combinations that are allowed but these restrictions are the same for everyone.

Access to Projects

Shared Projects• Initially, people only have access to Shared Projects owned by their own department

and above in the organisation hierarchy

UCL

SLMS

Faculty

Division Division Division

Department Department Department

Faculty Faculty

SLASH BEAMS

Access to ProjectsThere are two ways to give people access to projects

1. Organisation Security

2. Project Key Member

Organisation Security Access• Enter transactions against any project owned by the organisation unit and below in

the hierarchy• Run reports against any project owned by the organisation unit and below in the

hierarchy• To setup – email details of person and org unit to School Finance

UCL

SLMS

Faculty

Division Division Division

Department Department Department

Faculty Faculty

SLASH BEAMS

Access to ProjectsThere are two ways to give people access to projects

1. Organisation Security

2. Project Key Member

Project Key Member Access• The Project Manager, setup when the project is created, can enter transactions and

run reports• Additional key members can be added and removed by someone with the

Departmental Administrator role or Local Finance Manager role for the project owning department (or above)

• Two key member access types:• Unrestricted – enter transactions and run reports• Restricted – enter transactions

• There are other key member types which are used in the transaction authorisation process (Purchasing Manager, Expenses Manager)

Transaction Authorisation

In addition to authorised signatories• People can be setup to authorise every transaction against a project regardless of

the value• They can reject or accept• The transaction will be held for 5 days if they do nothing• This does not replace the authorised signatory, who must accept for the transaction

to proceed• Two types of key member:

1. Purchasing Manager – authorise all purchase requisitions

2. Expenses Manager – authorise all expense claims• Replaces the Project Manager as additional authorisation on research grants

Access to Reports

Steps to gain access to MyFinance Reports

1. Access to MyFinance system

2. Access to Projects through one of:• Organisation Security access• Project Manager• Unrestricted Key member

3. Access to MyFinance Reports• Happens semi-automatically once the other two sets of access are in place• There is a delay between access to MyFinance and access to MyFinance

Reports

Steps In Summary1. Access to MyFinance system

• System roles determine what functions in the MyFinance system you have access to

2. Access to Projects• To enter a transaction, you must have access to Projects• Several ways to gain access:

• Organisation Security access• Project Manager• Unrestricted Key member• Restricted Key member• Shared Projects

3. Authorising Transactions• Authorised Signatories must approve transactions (value, org)• People can be setup to approve all transactions against a particular project

• Purchasing Manager key member• Expenses Manager key member

4. Access to MyFinance Reports• Happens semi-automatically once people have system and project access

(www.ucl.ac.uk/finance/myfinance click on New Staff member, Temp or Contractor)


Axiom Reports

Income and Expenditure Report (with commitments)

Marion Atkinson


Enter date last!

Report Options – Views and Detail

Views• Income and Expenditure• Award Type

Detail• Project

…Project Type

…Project Manager

…Owning Org

• Task…Level 1

• Award…Award Type

…Award Org

• Expenditure Type…Nominal

…Nominal Level 3

…Nominal Level 2

Shows YTD overheads by Project

Report showing non pay by project and award type

Other Reports that may be useful

• Project balances - e.g. to look at balances in holding projects

• Commitments details report• Transactions reports• Monthly investigator reports


Questions

Finance Chart of Accounts Workshop 22 nd May 2015 UCL SCHOOL OF LIFE AND MEDICAL SCIENCES.

Documents

Transcript of Finance Chart of Accounts Workshop 22 nd May 2015 UCL SCHOOL OF LIFE AND MEDICAL SCIENCES.