Unlike most ‘for-profit’ organisations, funds allocated but unspent at the end of a financial year may in some cases (subject to rules) be carried forward in reserves for use in subsequent years. This allows institutions and Schools the flexibility to plan activities and expenditure in the medium-term with confidence.
The rules on how under-spends and over-spends against budget are treated at the year-end are set centrally. Where budgets are devolved to the School/Institution, any underspends or overspends are carried forward to the next financial year. For Schools and non-School institutions, Chest Stipends and Wages are devolved, i.e. under-spends and over-spends are retained by the School or non-School institution. This exercise is performed by the Central Research and Accounting team after the July accounting period is closed to institutions as part of the year-end process.
For all institutions, Chest non-staff costs, source of funds AAAA, is fully devolved, so over- or under-spends against budget may be carried forward to the next financial year. Please note that the Schools and the UAS have local policies for their constituent institutions or UAS Divisions, and these will determine how over or under-spends are managed.