Appendix 3
Budget and Business Planning Template 2005-09
A Guide to Completion and Interpretation
Changes from 2004-05
The general approach to planning has not significantly changed from 2004-05, in that it takes a budget year and then considers what changes (proposals) will occur. It also continues to be performed at a budgetary unit level, and then summarised by school. For this round, we are planning for the budget year + 3 more years (i.e. to 2008-09). This is one year less than the previous plan (which also went to 2008-09, but started a year earlier). There are some changes to the modelling. These have been based on both feedback and enhanced requirements from users. The key changes are: Single Template Cross-University We now use a single template for both schools and professional services. This makes for a consistent approach to planning, and enables a meaningful “Whole University” view to be taken. It does mean that users will find some schedules are not relevant to them - where possible these have been hidden to facilitate ease of use. “All-in-one” The Budget and Plan templates are now combined, with the budget linked to form the first year of the plan. This eliminates considerable duplicated effort, enforces consistency, and enables better tracking and audit trails. Changes in the way data is entered and shown Single Source of Core Staff Data The staffing schedule (“BP5”) is now the single source of all core staff data, for budget and proposals. This allows for an “at-a-glance” view of actual and projected staffing levels. MIR Compatibility The templates show figures in the same way as the MIRs (management information reports), in that income is shown as a credit (in brackets), and cost as a debit. The only exception is the student numbers schedules, where this would have meant the vast majority of figures being negative, and hence less easy to read. (This has been requested many times by users of both the MIRs and the plans.) Inflation Inflation is now shown in a separate column on the 5-year plan summary, making it easier to identify. Improved Traceability The derivation of all figures on the main schedule is shown in detailed workings, so that the effects of changes can easily be traced through.
Appendix 3 Consistency of Data Apart from the Main 5 Year Plan schedule, all schedules show data as cumulative rather than year on year changes. Where a year on year change is calculated for inclusion in the main schedule, it is explicitly calculated, and shown as such. Non Recurrent Income All non recurrent income and movements (research, D accounts etc) have their own schedule (one per funding letter-type). Full Student Roll Forward Student cohorts are now rolled forward on a year-by-year basis to provide a more accurate projection of future student populations. PS Proposal KPIs The Cost/FTE KPI on the proposals has been removed, as this was not always relevant, and was not deemed to be of much value. Changes in Methods of Allocation Variable Fees These are now fully modelled within the template, including deductions for Bursaries and additional contribution to SDF. PGR Funding Funding for PGRs is now modelled following HEFCE’s new RDP scheme. This funds PGR students (for units rated 4 and above) at a fixed rate per FTE, based solely on the subject cost band. It replaces the previous funding of HEFCE T grant (year 1 PGRs), QR Supervision, and a small element of QR mainstream. Space Charging Space charging is modelled using the new methodology. This includes cost weighting by space type (rather than school), and allocation of centrally bookable space according to usage on a student-hours basis. Part Timers Other than for part time Home/EU UGs, the template ignores the distinction between full time and part time students, dealing only in FTEs. (DLL is dealt with separately.)
File Locations and Naming Rules
Templates Templates will be stored on the Minos\finance directory, under \\minos\finance\schools\\BusPlan 2005-09\ for schools, and \\minos\finance\Professional Services\\BusPlan 2005-09\ for professional services. File names for current (latest) versions are defined thus: • School Summary: “ Summary Business Plan 2005-09.xls” o e.g. “IAIS Summary Business Plan 2005-09.xls” • Budgetary Unit: “ Business Plan 2005-09.xls”
Appendix 3 o e.g. “SHIPSS - Sociology Business Plan 2005-09.xls” When opening the template, you will be asked if you wish to update links. Please select “No” (the file it links to is not available to you, and it is not necessary to update the links). Where it is necessary to keep earlier versions of the plan, theses should be kept in an appropriately named subdirectory of the above directory, and the filenames have the status of the version appended to them, so for example: “IAIS Summary Business Plan 2005-09.xls” might become “IAIS Summary Business Plan 2005-09 pre BMG 15 May.xls” Please be careful when taking copies of current plans. Do not use the Excel “File-Save As” function as this could corrupt the file links. Instead, use the “Edit-Copy” and “Edit-Paste” functions of Windows explorer. Supporting Data (Schools) Data sheets necessary for you to complete the templates are available in the “\\minos\finance\schools\Common\BusPlan Data Sheets 2005-09” directory. Sheets that are usually available anyway (e.g. Income and Earnings Forecast) are stored in the normal place. A full list of the sheets available and their locations is contained in Annex C.
Populating the Template
The Key Schedules in the template are • Staff data (BP5), a post by post list of current and projected staffing • Budget, the familiar budget schedule • Student Numbers – for projecting teaching income (Schools only) • Research – R - for projecting research income • Proposals (Teaching / PSC), for projecting changes in the plan period The schedules and their operation are detailed below, along with completion guides. The following data has been pre-populated for you: • Staff data (BP5): o Current Staffing Data (from commitments) o Any vacancies agreed as part of the previous approved business plan (for PS, these are the Top and 2nd Order Priorities agreed at the SAOs awayday.) • Space Data • Prior Year Projected Out-Turn (from the latest BMG) • Budget Year Original Plan (from previous business plan) • Student Numbers from 2004-05 (Schools only) • Widening Participation • Teaching Resource Clawback (Schools only) • QR - Mainstream • SPaRC allocation for budget year, based on priorities agreed at the SAOs awayday (PS only)
Appendix 3
Schedules in the Template
Colour Coding Key: Purple Cells contain pre-populated data Bright Yellow Cells are for completion by the school Light Yellow Cells can be completed by the school, but will not normally need an entry. The schedules are listed in the order that they appear in the template. Index This is a quick reference guide to the template, and lists all the sheets in order. Reserves Movement Summary This sheet serves two functions. It is an "at a glance" list of movements in the unit’s in-year and reserves positions, and performs certain control checksums (e.g. that all staffing is properly recorded). Out-Turn 2004-05 This reconciles the previous 5 year plan position to the projected out-turn. 5 Year Plan This schedule is the summary for the budgetary unit of the financial plan. It takes as its starting point the budget year (to which it links directly), and then shows how the financial performance changes from year to year. The changes are summarised into: • Proposals (Teaching / PSC) • Other movements (including student progression, space movements, incremental drift) • Inflation (including inflation on Teaching and General proposals) Budget This schedule is the familiar budget schedule that breaks down the first year of the plan into the detail required for entry onto the finance system (Aptos). For those who are new to this schedule, guidelines for completion are shown in Annex A. Each workbook only contains one such schedule. This is consistent with the “budgetary unit” approach of the business plan. The many schedules that were contained in the previous budget template are now spread amongst the different budgetary unit plans, and collated in the school summary workbook. The budget schedule links directly to many of the workings schedules for data such as fee income, T grant, research overheads recovered, central charges etc. In particular, it links directly to the BP5 staff data schedule, rather than via the previous “amendments to baseline” schedule. Salary costs are extracted on the basis of matching the cost centre (row 5) and detail code (column G) with the “CODE” column of the BP5. There are changes to the detail codes used for staff costs from 2005-06 onwards:
Appendix 3 • • Staff paid through the payroll system will be charged to detail codes starting “3”. Non payroll staff/teaching costs will go to detail codes starting with “4”.
As a result: • There are some extra detail codes in the 38xxx range, to cover cost types formerly coded to a 4xxxx detail code - these are identified by both the narrative and the detail code being in blue on the budget sheet. • Some detail codes have had their description changed (and in cases their use restricted) - these are identified by the narrative being in blue. • Some detail codes ion the 4xxxx range have been removed. Further detail on the changes, including the reasons for it, is contained in Annex B (a note from Anne Shrubshall). The code list referred to is available if required. Student Numbers This schedule projects student numbers across the plan period, and calculates Fee Income and HEFCE-T Grant on those numbers. It covers modelled income (i.e. nondirect) students only. It also takes account of variable (top-up) fees, with calculations directly affected by them being coloured Pink. The following information is pre-populated: • 1 Dec 2004-05 census data • Teaching Load Adjustment Rates (actual to load factor) • Wastage rates x 2 (the model now distinguishes between wastage 1 Dec to 31 Jul, and 1 Aug to 1 Dec). • International, Island and JYA Fee rates for your budgetary unit For Home/EU UG, you should: • Input anticipated recruitment (1 Dec 05 census) as year 1 of the budget column (this should be your intake quota). If you have any Non-Recurrent Quota Allocations for 2005 entry (and hence your 2006-07 quota will be lower than 2005-06), then please inform your management accountant. • Input FTEs for year 4 (SML: your template will calculate this automatically) • Input FTEs (not headcount) for part time Home/EU UG • Complete the Going Out section, consisting of: o Outgoing Erasmus Students (whole year only) o Other Full-Time Abroad Study (FAS) students o Full-Time Abroad Working (FAW) and Full-Time Industrial placement (FIP) • If necessary, complete the Incoming Exchange Students line. For clarity, this includes incoming Erasmus and other UG international exchange students. (This section assumes that your exchange programmes are balanced, and that for each Erasmus and FAS student going out, you get one back in. If this is not the case, amend the number here. All incoming exchange students are treated identically.) • Finally, if you have any cross band transfers or other adjustments, enter them in the adjustments line. (Look out for cross-band transfers, where students who are
Appendix 3 nominally (say) band B take band C modules provided by the budgetary unit. Cross-band transfer FTEs should always balance out across the 3 bands.) Having completed the sections for Home/EU UG, you should now complete those for International, Island and JYA students – these work in very similar ways. For Postgraduate students, the modelling process is simpler. For PGTs, there is no roll forward (as courses are nominally for 1 year), and you should simply put the anticipated FTEs in the relevant line. If necessary, complete the premium fees. Remember to exclude any direct income students. For PGRs, there is a roll forward of existing student numbers. Note that RDP funding is received 1 year in arrears, and the model reflects this. Part time PGRs have been entered in the 1 Dec 04 census data as if they were in the equivalent full time year. Direct Fee Income This schedule is for modelling income that is directly coded to your unit, and is very similar to last year’s. It is fairly self explanatory, however if you wish to have help completing it, please talk to your management accountant. Supplementary Income Schedules These allow you to enter other types of income, and are mainly for projecting into the plan years. Transfer Schedules These detail any projected transfers of resources, either within the budgetary unit, within the school or across the University. Transfer schedules should balance at the appropriate level. Proposals (PSC) This schedule contains all the professional services development plans. Proposals cover year 2 of the plan onwards – they do not affect year 1 (the budget year). Completion is more free form than the previous version. Staff data is drawn from (and hence entered in) the BP5 schedule, where it is given the appropriate proposal reference (PSn). Other costs can be listed as you see fit. Teaching Proposals This schedule contains all the teaching proposals. Teaching proposals cover year 2 of the plan onwards – they do not affect year 1 (the budget year). You should enter: • Proposal Name (this is used on summaries) • Description of Proposal (This area is formatted so that it will automatically justify and words wrap – there should be no need to change column widths or add lines. • Fee rates – these are set, but can be changed if required • The HEFCE teaching band (if a PGT course) • If necessary, the long course status (a long course is one lasting 45 weeks or more) • The RDP Band (if a PGR course)
Appendix 3 • • • • Student FTEs, by type and year Any other associated income Any other associated costs Notes / Further Analysis – this is free form.
Staff FTEs and costs get into the schedule from BP5 – it is important that the Proposal Code on BP5 matches the one at the top right hand corner of the proposal. Once the teaching proposals schedule is completed, please advise your management accountant, who will arrange for unused proposals to be hidden (making printing much easier). Staff Data (BP5) + Staff Data Summary The Staff Data (BP5) schedule covers all existing and proposed staff. It is prepopulated with data from your existing commitments schedule. It projects the future staffing costs in very much the same way the old BP5 used to, and also serves as the recurrent staffing plan for the budget (thus replacing the old baseline and cost centre salary budget schedules). The BP5 works in a similar way to the commitment schedules that you have seen before (if you have not, please ask your management accountant). Key columns within the BP5 are: • Grade 1Aug 05: The starting grade for the post. If you wish to plan for nonscale staff, the following “grades” are available: o “ACADEMIC50” – salary of £50k o “ACADEMIC55” – salary of £55k o … o “ACADEMIC80” – salary of £80k • Start/End: For Budget year only – the start and end months where an appointment is not for the full year (1-Aug, 12=Jul). • Code: For Budget year only – the Aptos code you wish to budget for the staff member under (see note below under Budget for changes to Staff Costs and Non Pay Teaching Costs). • Pension: A=Academic (USS), O=Other (ERBS), N = none • Hours: expected working hours per week (for academics, put 36.5). • Proposal Code: Refers to where the cost is shown in the plan: o COM – Budget o GP1 – General Staffing proposal o TPn – Teaching Proposal number n. o PSn – Professional Services Proposal number n. • Post Dates: o Post start date – the date the staff member started in the post o Post Holder End Date or Retirement – the date the staff member will cease to be in the post o Post End Date – the date the post is due to end, if later than the Post Holder End date. A date of 31 July 2020 means the post has no specified end date (used for vacancies)
Appendix 3 o Proposed End Date – For input if it is proposed to change the post end date. If you wish to change existing data or insert additional lines for extra staff, please refer to your management accountant. The Staff Data Summary schedule summaries the staff data, and applies provisions for inflation, incremental drift and CBR. General Staff & Other Costs This proposal covers changes in staff and other costs that are not specifically linked to a teaching proposal. It is also where movements in non-core staff are entered Core staff costs are extracted from entries in BP5 (using the proposal code “GP1”). • Non core staff are entered directly into the proposal – this affects the central charges (PSC/SDF) only. • Other costs are also entered directly into the proposal. • Space This schedule details the space usage and charge for the budget year, and allows you to amend your planned space usage for future years – simply overwrite the numbers in the yellow cells. Please note that space can only be released if you have a purchaser for the space. Similarly, if you wish to take over space, there must be space available. It is not essential to have agreements in place in order to plan changes, but it is good practice to have some indication of who is taking over / giving up the space in question. This schedule also projects centrally bookable space charges. These will be based on student hours used. The template contains 2004-5 usage (derived from the timetabling system), but you may overwrite this if you wish. Non Recurrent Summary This schedule, and the 12 following it, detail the activity in the non-recurrent areas, and the transfers to/from these areas into the recurrent. The schedules generally follow a common approach, and completion is similar in many cases. 1) Populate the schedules with known positions a. From prime data (e.g. the RAG database, balances report on “D” accounts) b. Adjust these positions where necessary 2) Project future income and costs, separating between a. Direct Salaries and Costs b. Other Direct Costs c. Recharge of costs from recurrent area d. Project Income 3) Complete the Staff FTE estimates at the bottom of the schedule
Appendix 3
The level of detail to which you populate the schedules is up to you, but: • There has to be sufficient detail, given the value and risk involved, to allow subsequent management against the plan • For externally funded activity, it must be analysed by funder category. • Unidentified projects should be kept to minimum, particularly in the early years. If you require assistance, please contact your management accountant. Workings Schedules These schedules show additional information, and form part of the audit trail. They should not be altered. • PSC Calculation • Key Data for Student Numbers • Inflation Factors • Standing data Hidden Schedules The following schedules exist within the workbook, but are hidden, as they have no relevance to completion or understanding. They are used for extracting data once all plans are completed: • Space Planning Data Extracts • Inter School Transfers Extract
Linking in Additional Modelling
If you wish to include additional modelling within the template, please feel free to do so. Please use a new sheet(s), and link to it/them, rather than altering the structure of the existing sheets.
Appendix 3 Annex A – Completion of Budget Schedule Financial transactions (e.g. salary costs, student fees, stationery costs) within the university are recorded in the “Aptos” finance system. In order to identify who is responsible for the transaction, and the nature of, it is allocated an account code. This is a combination of a cost centre (defines what area is incurring the cost / benefiting from the income) and a detail code (defines what type of income/expense it is). To allow us to manage the financial performance at detailed level, we create a budget at the account code level (i.e. for each combination of cost centre and detail code, we estimate how much we will receive / spend in the coming year. This is then reported against actual spend in the monthly management information reports (MIRs). The schedule on which we create this budget consists of a matrix of cells, with cost centres listed across the top, and detail codes down the side. Certain entries (e.g. T grant income, staff costs) are created by linking to other sheets. The remainder (identified by being coloured light yellow) are for direct input into this schedule, against the relevant cost centre and detail code. Costs and Income should be valued at budget year prices. Income is always shown as a credit (a negative number), whereas costs are shown as debits (positive numbers). To facilitate completion and later management, the schedule is shown in similar form to the MIRs.
Appendix 3 Annex B – Aptos Coding Review: Staff Costs 1. Objectives 1.1. To provide a clear distinction between staff classifications and categories. 1.2. To achieve consistency between financial and other statistical reports 1.3. To provide sufficient detail for monitoring, analysis and decision making 2. Summary of reporting requirements 2.1. Financial accounts Staff costs Other operating expenses 2.2. HESA return Academic staff costs Other staff costs Other operating expenses Staff primarily employed for teaching or research Other employed staff Other personnel payments Personnel paid under contract of employment Personnel paid under contract for services
2.3. Management accounting/Research accounting Question – what level of analysis is required in management/project reports? 3. Detail 3.1. Staff costs constitute a major proportion of the University’s overall expenditure and are high profile in both the published accounts and the HESA return. 3.2. Personnel are currently paid either via the payroll or by invoice through the payment section. 3.3. There is a mixture of permanent, temporary and casual staff. 3.4. Some expenses are also paid via payroll and there are plans to extend this to all expense claims. 4. Definitions and reporting 4.1. There are 2 types of contract – contract of employment and contract for services. 4.2. Individuals under contract of employment will be subject to PAYE and will have income tax and NI deducted as appropriate. The employer must pay employer’s NI and pension contributions if applicable. 4.3. Individuals under contract for services will invoice the University for work done and will account for their own tax and NI. 4.4. The nature of the contract (which is not necessarily a written contract) depends on a number of criteria and is open to interpretation, which may be challenged by the Inland Revenue. It is not sufficient for an individual to state they are self-employed and ask to be paid gross. It is the employer’s
Appendix 3 responsibility to assess the nature of the specific contract and operate within current employment legislation. 4.5. Staff costs are normally defined as those costs associated with employed personnel and include gross pay, employer NI and pension contributions. 4.6. All personnel paid through the payroll are treated as under contract of employment and are included in staffing numbers for returns to HESA and in the published accounts. 4.7. The external audit process includes a reconciliation of payroll payments to our reported staff costs. 5. Current coding structure 5.1. Detail codes are of primary importance to the financial accounts as they form the basis of University wide reporting. 5.2. There are 2 ranges of detail codes used for personnel costs: Detail codes beginning 3**** Detail codes beginning 40*** 5.3. The attached code list outlines the broad treatment for HESA purposes of current Aptos detail codes, including some comments on the difficulties encountered. 5.4. Detail codes beginning 3**** are used with reasonable consistency exclusively for payroll payments (exceptions tend to be lump sum redundancy/retirement payments which may be paid through payments rather than the payroll). 5.5. Detail codes beginning 40*** are used for both payroll and invoiced payments. 5.6. The description attached to some detail codes results in both academic (teaching or research staff) and non-teaching staff being coded to the same detail code. 5.7. Codes are set up to take specified transaction types – PAY for payroll and PEX for payments. This can be used as a level of control to prevent mispostings. 6. Proposals In order to achieve a clearly defined coding structure that is understood by Schools/departments, by payroll staff and by finance staff, I would like to propose the following overriding principles: 6.1. A hierarchy of analysis is implemented in the coding structure which distinguishes in the first instance between • employed or contracted • academic or non-academic 6.2. All further analysis must fit within these categories 6.3. All staff paid through the payroll will be coded to a detail code commencing with 3****. 6.4. These codes will be set to take PAY transaction type only, not PEX. 6.5. All individuals paid by invoice will be coded to a detail code commencing with 40***.
Appendix 3 6.6. These codes will be set to take PEX transaction type only, not PAY. 7. Implications 7.1. The 40*** detail codes must be reviewed and new codes set up where necessary to conform with the above principles eg code 40000 (part-time teaching and temporary staff) is currently used for both teaching and nonteaching staff and takes both payroll and invoiced payments. 7.2. Use of the code for staff recharged from the temporary staff bank must be reviewed. 7.3. Codes for all staff currently paid through the payroll and coded to 40*** will require amendment 7.4. Clear guidelines must be given to those responsible for coding personnel payments and to the payroll, personnel and payments section. 8. Staff expenses 8.1. The payment of staff expenses is currently under review, both through the procurement strategy and through the transfer of all expenses to the payroll system. It is proposed that a separate review of the coding of staff expenses is carried out.
Appendix 3 Annex C - Supporting Data Sheets Filename PGR Student Numbers for RDP.xls Space Usage by School + Dept.xls QR Mainstream Allocation.xls PGR by Year for RPD.xls Quotas 2005 & 2006 for IDM April 2005.xls International + Island UGs by year.xls Wastage.xls WP Distribution 2005-06.xls Teaching Space Data and Costs 200405.xls Income and Earnings Forecast Research & OSR March.xls Purpose Informative Informative Informative Informative Populating Informative Informative Informative Informative Populating Location BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 BusPlan Data Sheets 2005-09 Research Monitoring Data\2005 Period 3