Professional Documents
Culture Documents
2007 / 08
7 February 2007
BUDGET GUIDE – 2007/08
CONTENTS
Page
1. Introduction 3
2. Planning Assumptions 4
4. Timetable 9
APPENDICES
Appendix 1 Income and Expenditure Codes legend
Appendix 2 Estates budgets bid form
Appendix 3 Fundraising – project funding request form
Appendix 4 Budget Submission template
1. INTRODUCTION
This document has been introduced to provide to budget holders all the
information that they might need to support them in the preparation of
Soji Otudeko – Head of Finance Page 2
their 2007-08 budgets. It is intended that it will be published annually as
part of the planning process thus ensuring an integrated planning and
budgeting process.
To ensure that the 2007-08 process is in line with the longer term strategy, the
2007-08 strand of the financial forecast to 2014 has been translated into a
faculty/departmental format. The key underlying financial assumption is that
of a no-growth budget but allowing for inflation and pay awards.
2. PLANNING ASSUMPTIONS
The funding proposal sent to HEFCE for approval indicates that the College will
be contributing £2.5 million out of its reserves to fund the relocation. At the
end of the 2005-06 year, we achieved £101k. An additional £239k (excluding
soft-funded projects) is budgeted for in the 06-07 accounts. Indications are
that the final 06-07 surplus will significantly increase once the mid-year
forecast outturn is completed. These funds form part of our general reserve.
Prudence dictates that we do not allocate all of our reserves on the Transition
budget, a level of General reserves needs to continue to be made to support
on-going activities. This has traditionally been set at 2.5% of income. A
dedicated ‘Transition Fund’ is being set aside to distinguish our general
reserves from the transition fund. An amount of £300k has been provided for
in the 2007-08 budgets to augment the Transition Fund. There is further
potential to allocate funds to the Transition Fund from the following pots -
• 2006-07 transition and contingency - £311k
• 2007-08 contingency - £141k
This will give a total potential fund of £752k at the end of 2007-08.
PLANNING LEVEL
Undergraduate –
Honours 402 556 958
Foundation Degrees
Post Graduate 24 24
426 556 982
UG - OVERSEAS 34 53 87
1
PGT-OVERSEAS 11 1 22
FE-OVERSEAS 10 10
55 64 119
Student Numbers 1375 1351 1412 1443 1432 1429 1450 1477
CHISLEHURST SITE GREENWICH SITE
Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast
2009/1 20010/1 2011/1 2012/1
INCOME 2006/7 2007/8 2008/9 0 1 2 3 2013/14
Core Funding
HEFCE Core Funding 5,911 6,168 6,334 6,571 6,816 7,071 7,335 7,609
Widening Participation 455 467 479 492 505 519 533 548
LSC Core Funding 1,037 1,064 1,092 1,122 1,152 1,183 1,215 1,248
7,403 7,699 7,906 8,185 8,474 8,773 9,083 9,404
Fee Income
Home/EU Fees - undergraduate 1,174 1,550 2,132 2,193 2,215 2,239 2,338 2,456
Home/EU Fees - postgraduate 91 100 109 112 115 121 127 134
Home/EU - Foundation 620 793 877 922 947 985 1,036 1,091
FE 16 16 16 17 17 18 18 19
Overseas Fees 813 899 926 951 977 1,014 1,053 1,094
Less Bursaries -120 -239 -350 -371 -377 -384 -402 -422
2,594 3,120 3,709 3,823 3,893 3,991 4,171 4,371
Net Commercial profit
Short course 36 37 38 47 50 54 59 63
Consultancy 36 37 38 41 44 48 51 55
Telephone masts 25 26 26 0 0 0 0 0
Business Incubation Services 6 6 6 11 12 14 16 18
Commercial Hire 0 0 0 27 28 29 29 18
103 106 108 125 134 144 155 154
TOTAL INCOME 10,939 11,752 12,451 12,560 12,734 13,144 13,601 14,125
EXPENDITURE
Salary Costs
Administration 2,763 2,876 2,995 3,135 3,229 3,326 3,450 3,579
Academic 2,185 2,275 2,406 2,518 2,593 2,671 2,751 2,878
Additional widening
participation initiatives 235 258 265 55 56 58 60 61
Depreciation
Building 262 262 262 758 758 758 758 758
Fixtures and Equipment 710 569 428 562 533 483 486 507
TOTAL EXPENDITURE 10,584 11,473 11,958 12,417 12,586 12,959 13,314 13,811
SURPLUS / (LOSS) 355 279 493 143 148 185 287 314
SURPLUS AS % OF
INCOME 3% 2% 4% 1% 1% 1% 2% 2%
SURPLUS WITHOUT
INTEREST PAYABLE AS %
OF INCOME 3% 2% 4% 4% 4% 4% 4% 4%
CAPITAL BUDGET
CAPITALISED BUILDING -45,500
CAPITALISED FIXTURES AND
FITTINGS -1,500
Fixtures and Fittings -103 -100 -50 -150 -150 -150 -150 -150
Computer Costs -456 -300 -300 -150 -150 -150 -150 -150
HEFCE Round 4 Income 347 412 0
7 February Bid forms for capital requirements sent out. Cathy B./Soji
Processing
29 June Budgets loaded onto the financial system (QLX) Soji
5.1 Responsibilities
The responsibility for producing the faculty or departmental plan is that of the
respective Management Committee member. The following people are
responsible for co-ordinating the budget preparation within each
faculty/department:
List of Contacts
Corporate Responsibilities -
Planning Process Janthia Taylor & Genevieve Cowcher
Budgeting and Financial Co-ordination Soji Otudeko
Staff Establishment Kathy Steele
IT Capital Projects Ian Hole
Estates Capital Budget Rachel Green/Cathy Blackford
Donated Goods and Services Amba Sessions
Faculties -
Faculties Budget Support Business Support Officers;
• Masters James Norman
• Foundation James Norman
• Communication Sarah Gaffney
• Design Kerry O’Halloran
Support Departments -
Service/Support departments Soji Otudeko
Ensure the budget holders, within their area of responsibility, are aware of
the process to complete a budget for 2007/08
Organise the production of a budget pack to collect the data needed to
produce the consolidated budget
Circulate the budget timetable, monitor adherence to it and ensure that on
the due dates accurate and relevant plans and budgets are received ready
for consolidation
Be the focal point for their faculty/department to answer questions and
queries.
DESIGN FACULTY
MLINK Academic Link Tutors Nicky Pickett Soji Otudeko
GSSUP Student Support Services Sharon Hocking Soji Otudeko
CCFOU Foundation Diploma Rosy Crehan James Norman
SINDI India Project Rosy Crehan Kerry O’Halloran
SCHIN China Project Rosy Crehan Kerry O’Halloran
DDFAS BA Fashion Rosy Crehan Kerry O’Halloran
DDADM Design Admin Rosy Crehan Kerry O’Halloran
DDPAF BA Product & Furniture Design Rosy Crehan Kerry O’Halloran
DDACT BA Interaction Design Rosy Crehan Kerry O’Halloran
DDINT Interior Design Environmental Rosy Crehan Kerry O’Halloran
Architectures (IDEAS)
MASTERS PROGRAMMES
DMIDM MA Interactive Digital Media Janthia Taylor James Norman
DMNME MA networked Media Janthia Taylor James Norman
Environments
INFORMATION SYSTEMS
MMANI Information Systems Eduardo Ossa Soji Otudeko
STUDENTS UNION
SSTUD Students Union Nick Busby & Tania Soji Otudeko
Holbrook
REGISTRY
GREGY Registry Renate Divers Soji Otudeko
FINANCE
GFINA Finance department Soji Otudeko
XINTR I & E Interest/ Instalment Soji Otudeko
Charges
XINVT I & E Investment income Soji Otudeko
WPENS I & E Pensions Soji Otudeko
YZMOR I & E Depreciation Soji Otudeko
ICT
MNETA Information Communication Ian Hole Soji Otudeko
Technology
SREPR Photocopying Ian Hole Soji Otudeko
HUMAN RESOURCES
RESOURCES
MARKETING
MMAKT Marketing Department Paul Bonnici /Jill Hogan Soji Otudeko
MMAKI International students Paul Bonnici /Jill Hogan Soji Otudeko
Marketing
KCOME Communication Media Shows Paul Bonnici /Jill Hogan Soji Otudeko
KBOSA Rave On Air marketing Paul Bonnici /Jill Hogan Soji Otudeko
Soji Otudeko – Head of Finance Page 12
Budget Description Budget Holder Finance/Busines
Centre s Support
No. Officer
KNEWD New Designers marketing Paul Bonnici /Jill Hogan Soji Otudeko
KGFWF Graduate Fashion Week Paul Bonnici /Jill Hogan Soji Otudeko
KFOUD Foundation Marketing Paul Bonnici /Jill Hogan Soji Otudeko
SOFT-FUNDED PROJECTS
SHRSP HR HEFCE-Support Doreen de Bellote Soji Otudeko
SFUND Fundraising Amba Sessions Soji Otudeko
SERAS Exchange Students Dianne Taylor/Rosy Soji Otudeko
Crehan
CBEXT Broadcasting External Janthia Taylor Soji Otudeko
SHEW1 YCTV Project Nicky Pickett Soji Otudeko
SHEW2 Learning & Teaching Janthia Taylor Soji Otudeko
Development
SHEWP Widening Participation Nicky Pickett Soji Otudeko
SCAD4 Good management Practice Robin Baker Soji Otudeko
SBUDP Bromley Unitary Development Robin Baker Soji Otudeko
SAAHL Aim Higher Nicky Picket Soji Otudeko
SDPRO Disability Provision Sharon Hocking Soji Otudeko
SLEAN E-learning Janthia Taylor Soji Otudeko
SITC4 HEFCE Capital Round 4 Ian Hole Soji Otudeko
SHACF HE Active Community Fund Nicky Pickett Soji Otudeko
SNALN National Arts Learning Network Ruth Keynes /Rosy Soji Otudeko
Crehan
SHEIF He Innovation Fund Janthia Taylor Soji Otudeko
SEDVT Emerald Fund – DVT Sock Janthia Taylor Soji Otudeko
SEBIK Emerald Fund – Cycle Lamp Janthia Taylor Soji Otudeko
SELUM Emerald Fund – Luminaire Janthia Taylor Soji Otudeko
SEOUT Emerald Fund – Outlet Janthia Taylor Soji Otudeko
SEUSF European Social Fund Mike O’Sullivan Soji Otudeko
SESU1 European Social Fund – In The Mike O’Sullivan Soji Otudeko
Picture
SITGP Innovation Thames Gateway Sonia Medin/Janthia Soji Otudeko
SJISC Design for Learning (JISC) Miles Metcalf Soji Otudeko
STQEF Teaching Quality Enhancement Janthia Taylor Soji Otudeko
SSSCH Summer School Nicky Pickett Soji Otudeko
SDIS3 Disability Round 3 Sharon Hocking Soji Otudeko
SPROF Professional standards Janthia Taylor Soji Otudeko
SITC3 HEFCE Capital round 3 Ian Hole Soji Otudeko
GCREA Creativity Incubator Janthia Soji Otudeko
AHEFC Higher Education Genevieve Cowcher Soji Otudeko
SINDI India Project Rosy Crehan Kerry O’Halloran
SCHIN China Project Rosy Crehan Kerry O’Halloran
The following highlights the major steps that budget holders should follow in
constructing the budget:
1. Permanent and fractional salary budget figures will be provided by the Head
of Finance.
3. Ensure that all direct costs, which are specific to your faculty or department,
are budgeted for.
4. Liaise with Amba Sessions to ensure that expected donated gifts and
services have been budgeted for.
Ensure that the annual budgets are phased in such a way that each month
reflects the expenditure to be incurred (or income to be received) during that
month. This should be for purchase orders and sales invoices raised during the
month. Finance department will ensure that appropriate phasing is done for
the students’ fee income.
The staff salary budgets will be based on the establishment list supplied by
Kathy Steele in HR. Heads of faculty and Heads of service should check with
HR to ensure that they have up-to-date establishment information for their
faculty/department. This includes staff in post and all approved vacancies.
The 2007-08 salary budgets will take into consideration the outcomes of the
recent Hays job evaluation process. Agreed salary awards will be incorporated
into the budgets based on information supplied by Human Resources and the
payroll department.
The Business Support Officers with the support of the Head of Finance (as
required) will work with the Heads of Faculty in preparing the sessional
contracts.
Where you have obtained HR approval to fill a temporary post, this will have
to be paid for from your departmental budget. Do bear in mind that temporary
staff employed through an agency, will incur agency fees, which include
national insurance, holiday pay and VAT.
Should bids for new posts be agreed, budget holders must ensure that all non-
salary costs e.g. computers, desks and telephones have been budgeted for
and that the relevant head of service (e.g. Head of ICT for computers) have
been notified.
Budget holders should bear in mind that capital expenditure is agreed with
HEFCE. A glance at the list of strategic objectives for the year, and the HEFCE
Round 4 projects indicates that there is very little wiggle-room. Whilst ITSC
could from time to time rearrange, or in extremis, change, strategic
objectives to meet emerging needs, its more direct function is to feed into
strategy and strategic objectives for following years, and to inform the
contents of HEFCE capital round bids. All of this should arise out of consensus
over which projects are likely to uphold institutional aims.
So, unless the heads of ICT and IS have voids in their annual plans, and are
looking for these to be filled by significant project work, ITSC will either
recommend a project be added to strategic plans, reprioritise plans in order
to bring a project forward, or reject a proposal as undoable within existing
constraints.
Faculties and departments should complete project mandates for any new IT
project, making the business case and including full costing and risk analysis,
and submit these to the –
• Head of ICT R&D for systems that facilitate interaction without specifying
the parameters.
For clarification, software for a lab or a new computer lab is the responsibility
of ICT. Software in support of an enterprise process (e.g. HR, Finance and
Student Records) is the domain of IS.
The head of ICT or the Head of IS, in consultation with the head of ICT-R&D (or
in mutual consultation when necessary), will advise on priorities according to
the IT strategy, and prepare a draft recommendation for the consideration of
the IT Steering Committee (ITSC).
Faculty and departmental heads will be expected to ensure that any mandates
they produce comply with the College’s strategic priorities and plans, prior to
them being considered by the Steering Committee.
Issues to consider in preparing your mandates –
• Where budget will be held; budget holders, ICT or IS revenue, or capital
• Source of funding; Capital - HEFCE round 4, others. Revenue – ICT or IS
revenue budget, or budget holder’s revenue budget
• Ongoing cost of support and maintenance
• Life of project and replacement. Is the project sustainable?
• Extra IT resources to run the projects; staffing, training, maintenance,
software, warranties, environmental considerations (eg air conditioning,
power)
• Impact of the project – who are the beneficiaries, and how will the effects
be realised?
A proforma has been designed to capture the issues above and to ensure
standardisation. This will be available on the ICT website. Please contact the
Head of ICT if you have any queries.
Estates department has developed a bid form (see appendix 1) that should be
completed in support of your requests. This submission form is for requests for
appropriate works to be undertaken by the Estate Department during
Academic year 2007/08. This bid form should not be used for general
maintenance issues, these requests should be submitted via the normal
maintenance request form.
The timetable in section 4 contains deadlines for the various activities within
the process, the key features of which are as follows –
• Bid forms have been sent out as part of the Budget Guide.
• The forms are to be completed and returned to Estates manager by 21
February.
• The bids will be presented to the Management Committee for their
consideration and approval.
• The list of approved projects will be sent to budget holders after
Management Committee meeting’s meeting of 26 March.
The current list of Soft-funded projects and their project managers can be
found in section 5 of this guide.
All gifts in kind over £1,000 in value must be recorded in the college’s
accounts. Efforts should therefore be made to budget for all expected gifts in
kind. This will ensure that the receipt of the GIK does not result in the budget
holder being shown as overspent by the value of the gift.
If the gift received was in budget the recipient will be ‘charged’ for the gift and
Fundraising will show the income. When not in budget an agreement will be
made between the relevant Head of faculty/service, fundraising and finance
on its treatment.
Accounting rules require that GIK donations are reflected in the accounts at a
“fair value”. The object of fair value measurement is to estimate an exchange
price for the goods or services, in the absence of an actual transaction. Fair
value is described as the amount for which goods or services could be
exchanged between knowledgeable, willing parties in an arm’s length
transaction. This statement effectively requires reference to an open market
valuation wherever this is possible, practical and cost effective to obtain.
Should this not be reasonably possible to obtain a market valuation, the head
of fundraising and the ‘receiving’ department should agree on the estimated
value supported by a logical argument.
Overall, we should strive to ensure that the financial framework is sustainable in the
long-term and that we use resources in the most effective and efficient way.
Each budget holder also receives a more detailed set of accounts, specific to
their budget centre, showing budget performance for the month, and year to
date, for each item of income and expenditure. It also shows how much of the
annual budget is available to spend.
Payroll List – This is a report generated by the payroll and sent to the budget
holders quarterly. It shows the names and FTEs on payroll for the month. The
budget holders/managers check these and report back to payroll.
Forecasts - At the end of each quarter (with the exception of quarter 4),
working with the Head of Finance, each faculty/department is expected to
submit a forecast outturn for the year. Deviations from the budget are
highlighted and investigated. This gives a roadmap of the months ahead and
is key to management decision-making.
NOTES
This submission form is for requests for appropriate works to be undertaken by the Estate
Department during Academic year 2007/08. This bid form should not be used for general
maintenance issues, these requests should be submitted via the normal maintenance request
form.
This form must be submitted via email to the Estate Manager no later than XX February 2007.
Applications received after this date will not be considered for inclusion in the 07/08 budget.
A submission will not automatically result in requests being included in the Estate budget for
07/08. All requests for works will be considered in context with College strategic plans and
budget constraints.
Name:
Department/Faculty:
-----------------------------------------------------------------------------------------------------------------
Description of Works Requested:
(Include details of any cost estimates if known)
Location:
Justification:
(If a health and safety issue attach the appropriate risk assessment)
Please ensure you fill in all sections otherwise the Development Office will be unable to submit your project
for review.
FUNDING CRITERIA
Your project must demonstrate at least ONE of the following objectives:
FACULTY: ______________________________________________________________________
PLEASE EXPLAIN THE ACTIVITY FOR WHICH YOU ARE SEEKING FUNDING AND HOW IT FITS WITH THE
STATED FUNDING CRITERIA. (MAX 50 WORDS)