1. Finance update – Year end 15/16 Lorna Bocquet and Tanya Hitchen

2. What’s so exciting about 31 July 2016?

3. Contents Impact of FRS102 Restated 2014/15 Position Accounting for your College or Professional Service Deadlines Central accounts – what do we need ***********Questions / Chance to leave************* Year-end adjustments – why, what, how

4. Impact of FRS 102 Impact of FRS 102 Grant income Service Concession Arrangement Investment Property Pension Provision

5. Grant Accounting Income recognised in line with performance conditions: Matching concept no longer exists potential difference between income and expenditure

6. Research Accounting - Example Donation received towards research project. No terms that would require returning money to the funder. At year-end: time into contract 50%, costs incurred 25%, cash received 100% Recognise 100% of income Recognise 50% of income Recognise 25% of income

7. Research Accounting - Example Money received from MRC towards a research project. Funding is conditional on delivery of a certain project At year-end: time into contract 50%, costs incurred 25%, cash received 100% Recognise 100% of income Recognise 50% of income Recognise 25% of income

8. Accounting for grants Research accounting will review year-end income position College to ensure all eligible expenditure is accrued Other grants – review within College Complete a CD form Ask for guidance

9. Grant Accounting – Capital Grants Under SSAP 4 – Deferred Capital Grants Under FRS 102 – Performance condition rules Purchasing equipment is the condition for recognising the funds Expenditure goes through capital; depreciated for project length Mismatch between income and expenditure

10. Grant Accounting - Examples Money received from STFC towards a research project. Funding is conditional on delivery of a certain project and purchasing required equipment. At year-end: costs incurred 50%, equipment purchased. Recognise 50% of total project income Recognise 100% of total project income Recognise funds for equipment and 50% of remaining funds Recognise funds for equipment and 100% of remaining funds

11. Grant Accounting – Summary Income recognised in line with performance conditions: Research Grants – Research Accounting Other grants - CD forms may be required. Think about FRS 102. Ask for advice.

12. Tangible Fixed Assets Biggest impacts under FRS 102 on the balance sheet: Service Concession Arrangement £13m asset, depreciated each year Investment Property £10m of property from Fixed Assets  Investments No more deferred capital grant releases £6.5m release no longer included Component accounting Higher depreciation. Why implement?

13. Pensions FRS 17 – no more FRS 102 has impact on provision and staff costs: Movement in USS pension liability now included in staff costs USS Pension liability now included in Provisions. How much in 2014/15?

14. Impact of FRS 102 Impact of FRS 102 Revised Position

15. Pension Liability SCA Pension Interest From STRGL

16. Endowment Cash SCA Interest rate swap USS Pension

17. College / Professional Services Income Expenditure Year-end accruals accounting Impact of central costs

18. Year-end accounting Automated accruals ensure as much as possible goes through the ledger Includes on-line expenses, purchase cards, IMS PO System Review and return by Monday 8 August Manual journals Timing around year-end for income and expenditure Consider impact of FRS102 for income

19. Year-end accruals accounting CD Forms CD1 A Creditors CD1 B Prepayments CD1 C Non staff / student expenses CD2 A Debtors CD2 B Income in Advance

20. Year-end accruals accounting Completing CD Forms Posting year-end journals Consider treatment under FRS 102 – has the income recognition trigger changed? Same coding as previous years Any queries – just ask Designated individual(s) in area Post into period 12.01 Access rights to be given ASAP Contact me with name(s) by end of next week if not already done so

21. Year-end accruals accounting Year-end I&E return Journals posted at College / Service level Designated ‘local champions’ in each College / Service Individual postings > £50k  Check with Corporate Finance Summary of year-end income and Expenditure adjustments returned to Corporate Accounts – authorised by HoF Sample check to be completed by our team Supporting documentation will be required by Audit

22. Deadlines

23. Detailed Timetable See email later today with timeline Pick up summary from the front FridaySaturdaySundayMonday 29 5pm APTOS access restricted 30311 10 am APTOS Access restriction lifted Year- end

24. Ultimate deadlines for Colleges

25. Payroll Student Expenses Friday 15 July Student Expenses Friday 15 July Non-staff Expense claims Friday 15 July Non-staff Expense claims Friday 15 July 2015/16 expenses Friday 5 August 2015/16 expenses Friday 5 August 2016/7 expenses WAIT until Monday 8 August 2016/7 expenses WAIT until Monday 8 August

26. Sales and Purchases FRIDAY 22 JULY FRIDAY 29 JULY FRIDAY 5 AUGUST

27. Put as much on the ledger as possible – see sales / purchases deadlines Review auto accruals and authorise Send forms and supporting documentation to local representatives Last day for posting CD forms to ledger Return CD Form Summary to Corporate Accounting CD Forms THURSDAY 11 AUGUST FRIDAY 12 AUGUST FRIDAY 12 AUGUST MONDAY 15 AUGUST MONDAY 15 AUGUST MONDAY 8 AUGUST MONDAY 8 AUGUST

28. Central costs – Maintenance Planon recharges  Direct works maintenance, Stores Complete jobs as at 31 July – standard recharge Incomplete jobs as at 31 July – reversing WIP journal Consist of labour charges, stores costs and invoiced costs Pre-year end review on June WIP Campus Services to send out data for WIP at 30 June Send queries to Helpdesk by 15 July for resolving

29. Central costs – Events Events and B&B bookings were raised by internal sales invoice Now completed by journal by Campus Services Finance Finalised events as at 31 July – standard journal Details to sent out by 4 August List of outstanding events not journaled in 2015/16 Details to be sent out by 4 August Colleges to raise accruals using CD forms

30. Corporate Accounting Equipment (> 25k) confirmations Stock (£500 - £25k) confirmations Auto accruals return CD Form Summary FRIDAY 5 AUGUST MONDAY 15 AUGUST MONDAY 8 AUGUST

31. Other Returns Foreign Currency Payments  Accounts Payable Petty Cash / Income return  Cash Office Variance Analysis Narrative from HoFs  Central Management Accounts FRIDAY 9 SEPTEMBER MONDAY 1 AUGUST FRIDAY 15 JULY

32. Thanks for listening Any questions Contact us: Tanya HitchenLorna Bocquet t.m.hitchen@exeter.ac.ukl.bocquet@exeter.ac.uk 01392 72 500901392 72 3076

33. Year-end adjustments Why What How