The B Sources of Funds are used where costs are initially paid by the University but on the basis that they will be reimbursed from an external source who was party to the initial expense. There are two main examples of this.
Salaries and related expenses (eg maintenance costs)
In some cases salary costs are paid through the University payroll and then reimbursed either in part or in full by external bodies. This commonly happens in the Clinical School departments where specific staff have joint employment contracts with the University and an NHS body such as Cambridge University Hospitals NHS Foundation Trust. This range of funds is therefore split into two areas:
BA** Health & Hospital Authorities
In both cases the salaries and costs for such staff are coded by payroll directly to the appropriate B Source of Funds. On a regular basis the Department raises invoices to the appropriate funding bodies, with the income coded to the same B Source of Funds.
BMRC: Insurance Claims
Income due or received as the result of an insurance claim is coded to Source of Funds BMRC. The associated replacement costs less any policy excess should also be posted to this Source of Funds. Cost Centre **AZ (where ** is the Department code) should be used in conjunction with insurance claims.
For more information see Insurance guidelines in Chapter 18 - Insurance
Important distinction between B and G Sources of Funds
B Sources of Funds should not be used for either of the following situations which are to be treated as trading and coded to Source of Funds GAAA.
A recharge occurs where the University recovers from a third party the costs incurred in either:
The recharge to the third party is a supply for VAT purposes and must be coded to Source of Funds GAAA. Staff secondments will normally be treated as recharges for this purpose.
|Contract for services||Many staff positions are coded to GAAA where an activity is being ‘traded’ and where the customer pays the University for services provided.|
Income and expenditure should be matched and reconciled (ideally monthly) and should be in balance at the year end.