Overview Regarding Budgetary Control and Funds Checking
overview does not cover Research Grants and Contracts or Estates and Facilities
Capital/Long Term Maintenance Projects.
2. Budget Organisations
The system uses a concept call Budget
Organisations. Each budget organisation represents a unique entity within UCL
to which specific accounts are assigned. Although many separate budget organisations
can be created UCL currently only uses one (entitled ‘ALL’) which is controlled
by Finance Division.
At present only one set of budgets
has been created. This has been given the title ‘College’.
budgets are posted to a specific budget field unlike the previous system where
budget allocations were treated as income and posted as transactions alongside
any other income and expenditure.
The ‘College’ budgets are maintained by Planning and Management Accounts staff but
Departments can request changes and transfers within their own codes.
The original plans were to introduce
separate ‘department’ budgets for use with the funds checking facilities and
to give department the flexibility to present their budgets in a different way. These plans have now been shelved for the time being.
4. Funds Checking
UCL does not currently use the funds
checking facility in an active way and is unlikely to do so with the current
version of the software. The level of funds checking is currently set to ‘None’ and the following description is provided for information only at this stage.
Funds checking is a facility that
enables the system to check that funds are available, after taking account of
budget less expenditure and commitments to date, before a transaction is approved.
Commitments are described as ‘encumbrances’ in the Oracle system,
It may be applied at the purchase
order approval stage, the invoice entry stage (where for example, the invoiced
amount is higher than the purchase order amount), or when journal transfers
are made, or all or any combination of the above. There are three levels of
None: no funds checking.
Advisory: a warning message.
“You have passed funds checking with advisory warning”, is displayed if there
are insufficient funds available, but the approval of the transaction eg purchase
order, is completed.
Absolute: The message “Failed
absolute funds checking” is displayed if thee are insufficient funds available. The transaction approval is not completed.
checking can be applied at various levels including account segment eg ABO1
or account plus analysis code segment level eg ABO1 6D0.
5. Monthly Reporting
currently receive the following monthly reports:
Details of budgets and expenditure
for the year to date, at analysis code level. Distributed by Accounts Payable
and expenditure transactions
Details of transactions for the
month to reconcile to the total shown on the balances report. Distributed by
Accounts Payable section.
Details of any changes to the budget
during the current month. Distributed by Accounts Payable sections.
level summary, at account code level, providing details of budget and expenditure
by Planning and Management Accounts section.
Departments are able to access the system on line to view relevant details and
to print reports locally.
6. Year End Procedures
the end of each financial year, the following action takes place:
This page last modified
June 3, 2011
by Web Editor