Bitesize Briefing #5

Month End Departmental

Processes

Aim of this session are to provide:

Monthly timetable – key dates and tasks

IDJ and IDT

Explanation on Accrual, Prepayments and Deferred Income

Journal template

Dashboards and transaction slicer

3

Monthly timetable – key dates and tasksWorking day of the Month Deadline Task Owner Tasks to be Completed

AP and AR Closes

SIP submission

DM/AA Review suspense accounts so all entries can be cleared in time for period closure. Ensure all

invoices have been completed on MyFinance

see HR deadline link below for exact dates

Cost error DM/AA Review cost error report and advise where the they should be recoded to

2 Month End - clear suspense DM/AA Clear suspense accounts to zero and reallocate all deficit balances - to be reviewed weekly

3 Month End - accruals/prepayments DM/MA/AA Ensure all accruals/deferals are sent to school finance team. Provide information for clearing

suspense accounts

4 Month End - general ledger closes

5 DM Continue working on clearing outstanding suspense items

6

7

9

DM/MA/AA MA to have met with departments to discuss their dashboards and actions required going

forward. Between day 10-20

DM Implement actions agreed in the meeting with MA discussing the dashboard. Between day 11-23

11

12

13

14

15

16

17

18

19

20

21 Preparation for AP and AR Close DM Ensure all POs are matched before AP and AR closes on 1st working day of the following month

22

23

24

The Departments to make sure that they process new strates/leavers and submit SIP forms as soon

as possible. Deadlines specified are a guidance from Payroll, but in a case of higher workload some

of the last minute forms might not be processed in the month and will be actioned the month after

Payroll deadline can be found here: http://www.ucl.ac.uk/hr/docs/payroll_deadline.php

10 Monthly Finance meetings

Division/Department Deadline

1

8 Dashboards/transaction slicer to be received by Depts/Divisions DM Review dashboards and transaction slicer in advance of the MA meeting - look into and

understand the significant variances to budget and the likely full year impact of this

WD1 – AP/AR closes

Review every Trading/PP activity to ensure invoices are raised

– Run Axiom Project Balance report

– Use to identify need for invoice/recharge

Purchase invoices to be receipted

All spend related to Research ensure moved to Research Grants via

IDTs/IDJs

Internal Recharges (IDTs/IDJs) to be approved4

WD3 – Journals to School Finance team for posting

Month end journals

• REVERSING – Accruals/Prepayments/Deferrals

• Commitments report

• Invoices relating to future periods

• >£10k

• STANDARD – any other corrections/adjustments

• All journals need a valid PTAE combination

a.) Correct Expenditure type

b.) Grant is not expired

5

WD4 – GL Closes

School Finance team post all journals by 4pm

Central teams start ledger reconciliation (Research, SAM)

School finance work on dashboard and transactions slicers (to be

covered later)

6

WD 5-8 – Reconciliation

Journals (focus at month end but can be performed at any time)

Review all Other Projects in deficit to clear – approval should be

obtained from SFT if accounts are expected to be in deficit

Clear divisional Holding Accounts balances

– BSU, Payroll, Portico and anything else for the month

Corrections to allocate costs/income to correct code where an error

was made when raising PO/invoice.

7

WD16 (Before Payroll closes)

Review payroll cost analysis report

Identify staff costs in suspense a/c

ACTION by:

- Provide new PTAE

- Prepare SiP forms

- Chase Research Services

8

IDT - What is it and why is it used?

An IDT is an in Inter-Departmental Transfer.

It is used when a service has been provided between departments

within UCL.

The codes to use will be covered in the next training session, which

will be on internals

9

• An IDJ is and Intra-Departmental Journal

• Use an IDJ to:

Correct a transaction that has been posted to the wrong PTA (Project, Task & Award), or

Recharge costs within your own department

• When creating an IDJ, the total of all lines should equal zero by

category (income and expenditure)

• Codes to use: http://www.ucl.ac.uk/finance/myfinance/idj

10

IDJ – What is it and why is it used?

Additional information Detailed guidance provided on the MyFinance home page:-

Covers:-

How to create a New IDT and IDJ

Which codes to use

Additional Instructions available on MyFinance Help eLearning 11

Expenditure Accruals

Goods or services over £10,000 (depends on the size of the department, speak to your MA for clarification), which have been received, for which payment has not made

E.g. purchase of a computer that have been delivered but not yet paid

If the invoice has not been received, an estimate based on a quotation from the supplier should be used

Details should be entered onto the journal template (covered later)

Deferred Income

Any income which has been received or sales invoices raised in

advance of a service/product being supplied which has not taking place

e.g. short course fees received for a course which is taking place in the

future

Income Accrual

Income receivable over £10,000 (depends on the size of the department,

speak to your MA for clarification) for goods or services supplied but not

invoiced or income received

E.g. a shared teaching arrangement with a external entity (not UCL) from

which income is received

Prepayment

Payments made for goods or services which relate to the activity in the

future or a service carried out throughout a given period (prepay the

future period, over £10,000)

E.g. a shared teaching arrangement with a external entity (not UCL) for

which the annual payment for teaching commitments has been paid.

Here you will need to prepay the remain months of the arrangement.

Example of how an accrual or prepayment will effect your

monthly position

0

10

20

30

40

50

60

70

80

90

100

110

120

130

Tho

usands

Expenditure for external teaching contract(accrual/prepayment example)

The actual

amount that

should be

recognised

each month

Less expenditure than forecasted More expenditure than forecasted

Whole year

payment made in

January

Expenditure accrual Prepayment10

Journal template

For the accruals, deferred income and prepayments please fill in the reversing tab in the journal template

Please note that these entries will be reversed next month

For correction, please fill in the correction tab in the journal template

Journal template can be found here:

Journals\Accrual-Deferral Template.xlsx

Completed templates should sent to School Finance teams by working day 3 of each month.

Audit evidence – Important to ensure that we have proper supporting documentation. Examples are:

Produced by a third party (supplier invoices, signed contracts with supplier/customer, bank statements, grant award letters)

Covering memo/email/narrative for internal transactions with explanations

More guidance on supporting documents from auditors can be found here:• Auditor_Guidance_-_Audit_Evidence.xlsx

Please speak to your School finance team if you have any questions

Supporting documentation for journals

F00 Example department, March (P08) 2

Year To Date Income & Expenditure

£m's

C R O T C. R. O. T C.. R.. O.. T

Income

HEFCE Grant 457 - - 457 454 - - 454 454 - - 454

Tuition Fees 3,112 (3) (11) 3,098 2,950 (3) (9) 2,938 2,895 (3) (9) 2,883

Research Grants & Contracts 60 220 - 280 149 349 - 498 95 247 - 342

Internal Income 17 - - 17 178 - 5 183 8 - 3 11

Other Fees 37 - 11 48 0 - 9 9 - - 9 9

Other Operating Income 1 - 901 902 14 - 153 167 15 - 119 134

Income Total 3,684 217 901 4,802 3,746 346 158 4,250 3,468 244 122 3,834

Expenditure

Staff Costs 1,326 63 142 1,531 1,499 88 77 1,665 1,481 73 33 1,587

Other Operating Expenses 412 154 673 1,238 414 258 337 1,009 382 171 307 861

Expenditure Total 1,738 216 815 2,769 1,913 346 415 2,674 1,863 244 341 2,448

Reserves Transfers - - - - - - - - - - - -

Contribution, £m 1,946 0 86 2,033 1,833 0 (257) 1,576 1,605 0 (219) 1,386

Contribution, % 42.3% 37.1% 36.2%

C = Core, R = Research, O = Other, T = Total;

Values will be RED if adverse variance to Forecast > 5% & AMBER if variance to Forecast is between 3% & 5%

YTD Core Expenditure compared to Forecast (£'000)

YTD Other Expenditure compared to Forecast (£'000)

Spend to date < Straight Line

Forecast Spend = > Straight Line Forecast

Spend => 100% of Full Year

Forecast

Forecasted Spend on

Straight Line Basis

Spend to date < Straight Line

Forecast Spend = > Straight Line Forecast

Spend => 100% of Full Year

Forecast

Forecasted Spend on

Straight Line Basis

Prior Year 16/17 Forecast 17/18 Actual 17/18

(200,000)

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

1,400,000

1,600,000

In surplus In deficit Net balance

Month End Balances - Other Area (excluding Endowment)

88

YTD Contribution v YTD Forecast

Expenditure Type YTD Spend Forecast % of F1 Spent

Staff Costs 1,481 2,220 67%

Conference, Travel & Training 180.7 361.9 50%

Scholarships & Prizes 110.4 122.4 90%

Equipment 26.8 18.3 147%

Non Contract Staff & Agencies 19.3 20.0 96%

Other costs 12.8 47.3 27%

Internal Expenditure 7.4 13.8 54%

Office costs 7.1 17.4 41%

Professional & other fees 7.1 18.4 39%

Other Core Activity 10.4 8.2 127%

Total Opex (Non Staff) 381.9 627.8 61%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Staff Costs

Conference, Travel &Training

Scholarships & Prizes

Equipment

Non Contract Staff &Agencies

Other costs

Internal Expenditure

Office costs

Professional & otherfees

Other Core Activity

Total Opex (Non Staff)

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Staff Costs

Conference, Travel &Training

Scholarships & Prizes

Professional & otherfees

Other costs

Advertising &Recruitment

Non Contract Staff &Agencies

Patient/Subject Fees &Expenses

Office costs

Other Activity

Total Opex (Non Staff)

Expenditure Type YTD Spend Forecast % of F1 Spent

Staff Costs 33.2 136.5 24%

Conference, Travel & Training 170.3 180.9 94%

Scholarships & Prizes 120.2 164.3 73%

Professional & other fees 11.7 25.7 46%

Other costs 8.5 102.9 8%

Advertising & Recruitment 3.0 2.0 150%

Non Contract Staff & Agencies 1.5 - 100%

Patient/Subject Fees & Expenses 1.3 0.0 200%

Office costs 1.1 0.4 200%

Other Activity 10.3- 2.1- 200%

Total Opex (Non Staff) 307.4 474.0 65%

Project Project Name Award Type Total

599999 F00 TAS Discretionary 40.1

599998 F00 OC CORTI78 Discretionary 1.7

42

TOTAL VALUE OF ALL DEFICIT PROJECTS 41.8

Top 10 Projects in DEFICIT ('Other' area - excluding endowments) listed by value (£'000)

Gauge chart shows YTD position compared to Forecast YTD position; green is good, red is bad

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

-

50

100

150

200

250

300

£'00

0

Research Overheads - Forecast vs Extrapolated

YTD Actual

Actuals F1 OH %

(2)

-

2

4

6

8

10

12

14

16

£'00

0

Month End Suspense Balances

Income staff Opex

92

YTD Contribution v YTD Budget

Gauge chart shows YTD position compared to Forecast YTD position; green is good, red is bad

Monthly Departmental Dashboard The colours flag when there is a

large variance to the Forecast

How far ahead/behind the Forecast

contribution the department is: i.e.

88% behind YTD

This list shows

the top 9

expenditure

types by YTD

spend vs Full

Year Forecast

This shows

monthly suspense

balances for the

dep-t. Have to be

cleared ASAP

Projects in

deficit. Including

brought forward

balance from

previous years

and YTD spend

F00 Example department

Sum of YTD Activity (£) CRO PERIOD_NUMBER

Core Other Grand Total

Non Payroll' Payroll I&E Line Project Project Description

Payroll Academic 599895 Example name 1,166 1,166

599896 Example name 900 900

599899 Example name 640 640

599901 Example name 806 806

599903 Example name 1,624 1,624

599904 Example name 227 227

599906 Example name 4,045 4,045

599908 Example name 2,508 2,508

Award Type

Core

Discretionary

Primary Purpose

Trading (UCLT)

• Slicer tab: Filter - All Transactions

• Slicer tab: Filter – Staff Cost Only

You can

sort the

data by the

award type

by clicking

on the

relevant

award

This area gives a breakdown

by expenditure type, project

and award description

This area separates the Core

and Other totals

F00 Example Department

Award Type

Core

Discretionary

Doctoral Training

Donation (Unrestricted)

Primary Purpose

Trading (UCLT)

Sum of YTD Activity (£) CRO PERIOD_NUMBER

Core Grand Total

Non Payroll' Payroll I&E Line Project Project Description

Non Staff Equipment 999999 F00 Field Trips 41 41

999998 F00 ESD 74 74

999996 F00 Academic Development 60 60

999997 F00 Example 26,580 26,580

Grand Total 26,755 26,755

This is the total amount that is shown on the

Dashboard under Equipment

Transaction slicer

Row A3198

Column 1

Active Rows 3191

F00 Example department

Tag1 Tag2 Project Project Description CRO Award Type Award Description MAN2 I&E Grouping I&E Line Expenditure Type YTD Activity (£) Transaction Description

1 7 599890 Example name Other Discretionary Discretionary M22012 Other Operating Expenses Other costs 1,200.00 FEE FOR TRANSCRIPTION INSTITUTIONAL INTERVIEWA

2 8 599891 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 44.40 Train Ticket - UK

3 9 599891 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training (44.40) Train Ticket - UK

4 507 599892 Example name Other Discretionary Discretionary M15002 Other Operating Income Other Services Rendered (835.84) B/B 16/08/2017 - BELKOW TERESA * 426110*115

5 508 599892 Example name Other Discretionary Discretionary M22005 Other Operating Expenses Equipment 29.99 IT Hardware

6 509 599892 Example name Other Discretionary Discretionary M22005 Other Operating Expenses Equipment 76.43 IT Software

7 510 599892 Example name Other Discretionary Discretionary M22002 Other Operating Expenses Books & Library 240.04 Books

8 511 599892 Example name Other Discretionary Discretionary M22011 Other Operating Expenses Office costs 166.47 Internet Access - Offsite - Overseas

9 512 599892 Example name Other Discretionary Discretionary M22011 Other Operating Expenses Office costs 12.90 Postage

10 513 599892 Example name Other Discretionary Discretionary M22011 Other Operating Expenses Office costs 7.25 Postage

11 514 599892 Example name Other Discretionary Discretionary M22011 Other Operating Expenses Office costs 93.42 Stationery

12 515 599892 Example name Other Discretionary Discretionary M22011 Other Operating Expenses Office costs 11.69 Stationery

13 516 599892 Example name Other Discretionary Discretionary M22011 Other Operating Expenses Office costs 25.49 Stationery

14 517 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 57.00 Taxi - Overseas

15 518 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 34.30 Taxi - Overseas

16 519 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 10.50 Meals - Dinner UK (Subsistence)

17 520 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 11.70 Meals - Breakfast UK (Subsistence)

18 521 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 2.90 Meals - Breakfast UK (Subsistence)

19 522 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 10.50 Meals - Dinner Overseas (Subsistence)

20 523 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 9.15 Meals - Dinner Overseas (Subsistence)

21 524 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 12.08 Hospitality - Business Ent - UK

22 525 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 18.00 Hospitality - Staff & Student Ent - UK

23 526 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 31.60 Train Ticket - UK

24 527 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 40.20 Taxi - UK

25 528 599892 Example name Other Discretionary Discretionary M22003 Other Operating Expenses Conference, Travel & Training 44.20 Taxi - UK

26 529 599892 Example name Other Discretionary Discretionary M22012 Other Operating Expenses Other costs 32.40 Exceptional Items - Vatable

27 530 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 777.42 Return flight for Dr Giovanna Astolfo. Departure 10 February

28 531 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 0.00 Return flight for Dr Giovanna Astolfo. Departure 10 February

29 532 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 286.20 GEO - Accommodation for Supitcha in YNG, 12-17 Feb, Hotel

30 533 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 250.10 GEO - Return Flights BKK-YNG for Supitcha

31 534 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 0.00 GEO - Accommodation for Supitcha in YNG, 12-17 Feb, Hotel

32 535 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 0.00 GEO - Return Flights BKK-YNG for Supitcha

33 536 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 254.00 Return flight for Mr Witee Wisuthumporn.Departure 12

34 537 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 0.00 Return flight for Mr Witee Wisuthumporn.Departure 12

35 538 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 379.98Global Engagement Funds (GEF) . Hotel booking for Wah Wah

Myint Thu. Sun, 17 Sep - Sat, 23 Sep • 1 Room

36 539 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 0.00Global Engagement Funds (GEF) . Hotel booking for Wah Wah

Myint Thu. Sun, 17 Sep - Sat, 23 Sep • 1 Room

37 540 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 117.51Hotel accomodation for WITEE WISUTHUMPORN.Hotel @

Yangon Heritage. from 12-15 Feb 2018.

38 541 599893 Example name Core Core UCL Core M22003 Other Operating Expenses Conference, Travel & Training 0.00Hotel accomodation for WITEE WISUTHUMPORN.Hotel @

Yangon Heritage. from 12-15 Feb 2018.

Slicer tab: Transactions

This tab gives a detailed line by line breakdown of all the Year To Date transactions that has gone through the

ledger.

Transaction slicer

Questions?

These slides will be available at:

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