FSR record 2014/15
FSR record 2014/15
Table 7 - Expenditure by activity
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Version 1.0 Produced 2015-03-05
- Table 7 provides a further analysis of the four main expenditure headings in Table 1. The totals for each of the main expenditure headings must be the same as those in the financial statements.
- Under the implementation of fEC the costs of higher education providers (HEPs') activities remain as they would otherwise have been. On the face of the income and expenditure account the categories of staff costs, other operating expenses, depreciation of tangible assets and interest and other finance costs remain the same; for those institutions that have disclosed the direct costs of research in the notes to the accounts the same treatment is also appropriate here. HEPs should therefore note that there is no change to the guidance for reporting of research expenditure.
- Costs should be returned in the appropriate column. The columns are:
- Staff costs should cover all staff for whom the HEP is liable to pay Class 1 National Insurance contributions and/or who have a contract of employment with the HEP. This should include any redundancy or restructuring payments (where they are not treated as exceptional items), which should be returned under Head 7. The pay of departmental administrators and of other non-teaching staff employed in academic departments should be included under Head 1; where they are shared between a number of departments, the cost should be allocated on a basis that equates to the effort input to each department. Payments to non-contracted staff or individuals should be included in other operating expenses (Column 4).
- In accordance with FRS 17 current and past service costs should be returned under staff costs in the HEP's income and expenditure account. However, for the purposes of the FSR return the actual pension costs for any scheme treated as a defined benefit scheme under FRS 17 should be analysed out by department but any FRS 17 adjustment made to staff costs in the income and expenditure account (i.e. difference between actual contributions made and current service cost figure) should be included against Head 7 (Other expenditure) rather than against departments - pro-rata between academic and other staff costs. Pension cost adjustments should be returned under Head 7, rather than sub-head 3b. Costs such as maternity pay and sick pay should be treated as normal staff costs, and allocated under the appropriate cost centre.
- Under Column 1 Head 1 should be included costs in respect of academic professionals, paid from within the budgets of academic departments and allocated to the appropriate cost centre. The costs of academic staff in non-academic departments should be included under Heads 2 to 7, as appropriate.
- Under Column 2 Head 1 should be included the costs of all other staff paid from within the budgets of academic departments and allocated to the appropriate cost centre. The costs of other staff in non-academic departments should be included under Heads 2 to 7, as appropriate.
- This is the total of Columns 1 and 2 and is automatically calculated.
- Other operating expenses should be allocated to academic department cost centres under Column 4 Head 1 or to the non-departmental Heads according to where these costs are incurred. The costs included should be all other non-staff costs incurred (except for depreciation of tangible fixed assets and interest and other finance costs, which are shown separately). Equipment that has not been capitalised should be recorded under this column against the appropriate cost centre. Also expenditure on maintenance contracts should be included under this column. Where costs that occur centrally are charged to departments, e.g. telephone costs, they should be included in academic departmental expenditure under the appropriate cost centre. If not split by cost centre, the total should be included under Column 4 Head 3a (Central administration & services). Other operating expenses on residential, catering and conference operations should be shown against Column 4 Head 5.
- Depreciation on capitalised equipment should be recorded according to where the assets being depreciated are located:
Staff (columns 1-3)
Column 1 (Academic)
Academic staff are defined as staff at least one of whose contracts of employment relate to an academic function and whose contract activity can be categorised as 'Managers, directors and senior officials', 'Professional occupations' or 'Associate professional and technical occupations' as defined by the 2010 Standard Occupational Classification (SOC) major groups 1, 2 or 3. This may therefore include vice-chancellors and other senior academic managers, medical practitioners, dentists, veterinarians and other health care professionals whose contract of employment includes an academic function.
Column 2 (Other)
Column 3 (Total staff)
Column 4 (Other operating expenses)
Column 5 (Depreciation of tangible fixed assets)
- Head 1 Academic departments
- Head 2 Total academic services
- Head 3 Administration & central services
- Head 6 Research grants and contracts
- Head 7 Other expenditure.
It is not necessary to apportion the depreciation for 'central' equipment over the cost centres.
Column 6 (Interest and other finance costs)
- Sub-head 4b Premises - Other expenditure
- Head 5 Total residences and catering operations (including conferences)
- Head 7 Other expenditure.
Column 7 (Total expenditure)
Head 1: Academic departments
Following a consultation on the use of cost centres in 2011, the list of cost centres changed for 2012/13 HESA collections. HEPs are advised to read through the documentation to familiarise themselves with the revised cost centres.
a. Payment to other HEPs in respect of the teaching of students who are principally registered at the reporting HEP (for example, if some of the teaching of a course is "sub-contracted" to another HEP, or if a "franchising" arrangement involves such payments).
b. Expenditure from Research Council grants in respect of Doctoral Training Centres, Doctoral Training Grants and Collaborative Training Accounts (or similar postgraduate grants) for the training of postgraduate research students, including bench fees and Collaborative Awards in Science and Engineering (CASE) awards, (except for associated bursary payments which, if the HEP is acting as principal, should be returned under 3bii).
c. The cost of departmental museums and observatories which are housed in a teaching department.
d. Expenditure on departmental computers and that incurred by departments for the use of computers outside the HEP.
e. Expenditure on animal houses and similar units associated with particular departments, if necessary with apportionment between department groups concerned.
a. Expenditure on departmental libraries, which should appear instead under Head 2 (Total academic services).
b. Expenditure on conferences, although organised by academic departments, should appear under Head 5 (Total residences and catering operations (including conferences)).
c. Expenditure on bursaries, which should appear instead under Heads 3bi and 3bii.
Head 2: Total academic services
Head 3: Administration & central services
Sub-head 3a (Central administration & services)
a. Public relations
b. Advertising of and recruitment to all vacancies
c. Removal expenses of all staff
d. Publications, excluding educational publications
e. Rating or council tax advisers
f. Security of wages
g. Bank charges, excluding interest (which should be shown under Head 7)
h. Calendar, prospectuses, regulations etc.
i. General advertising
j. Other costs of faculty offices in respect of central administrative work
k. Legal and audit fees
l. Internal audit
m. Superannuation management (including where outsourced)
n. Postage where centrally charged
o. Expenses of Head of HEP
p. General insurance costs not included elsewhere
q. Telephone costs (calls, rental and non-capitalised equipment) where centrally charged.
Sub-head 3b (General educational expenditure)
All HEPs should complete Sub-head 3b.
i. National Bursaries (including from the National Scholarship Programme)
ii. HEP specific (including departmental) bursaries and scholarships
iii. Other general expenditure.
Sub-head 3bi (National Bursaries (including from the National Scholarship Programme)):
Sub-head 3bii (HEP specific (including departmental) bursaries and scholarships):
Sub-head 3biii (Other general expenditure):
a. Examinations (including external examiners, printing etc.)
c. Provisions for bad debts in respect of unpaid fees (if, however, the teaching service has not been provided, then the fees written off should instead be shown as a reduction in income against the appropriate Head in Table 6a.)
d. Educational publications
e. Public lectures, concerts and exhibitions
f. Subscriptions and contributions to learned societies and similar bodies
g. Contributions to representative bodies and agencies
h. Works of art
i. Contributions to the HEP's press
j. Research projects not returned under other Heads
k. Explorations and expeditions
l. HEP representation at conferences, seminars, etc.
m. Administration of non-departmental Arts Centres, Theatres, etc. excluding expenditure appropriate to Head 5
n. Widening participation activity, including schools liaison, outreach programmes, summer schools etc.
o. Student recruitment costs (home and overseas).
Sub-head 3c (Staff and student facilities)
a. Careers Advisory Services (where staff involved have more than one function, an appropriate apportionment of pay should be made)
b. Grants made to student societies, including additional subventions to student unions for specific purposes
c. That proportion of the emoluments of wardens of halls of residence in respect of all duties performed in that role
d. Accommodation Services (where staff involved have more than one function, an appropriate apportionment of pay should be made)
e. Health Services
f. Athletic and sporting facilities except maintenance
g. Transport of staff and students between colleges sites, etc.
h. The Officer Training Corps (OTC) and the Air and Naval Squadrons
i. Chaplaincy Centres
j. Student counselling
l. Expenditure on staff and student amenities and facilities not covered above.
Head 4: Premises
Sub-head 4a (Repairs and maintenance)
Sub-head 4b (Other expenditure)
a. Rates (the uniform business rate charged by local authorities)
b. Payments made for the rental of premises
c. Recurrent costs of energy (fuel, gas and electricity), water and sewerage
d. Depreciation of all buildings except residential, catering and conference buildings
e. Cost of insuring all premises and their contents
f. Cost of cleaning (i.e. salaries, wages and materials, and payments in respect of contract cleaning)
g. Cost of portering and security services.
Head 5: Total residences and catering operations (including conferences)
Head 6: Research grants and contracts
Head 7: Other expenditure
Sub-head 7a (Pension cost adjustment)
Sub-head 7b (Other)
Head 8: Total expenditure
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