Land and Buildings

On this page:

• Overview
• Departmental funding of EM work
• Building Funds
• Funding
• Expenditure

Overview

The usual means of incurring and managing the expenditure on land and buildings is through Estate Management (EM) because of the complexities of building projects.

Although, it may be convenient for Departments to carry out certain works themselves, it is also clear that there are a number of risks involved in managing building works, which have potentially serious consequences for the University (e.g. in the event of an accident or dispute). When the EM team directly controls the works they manage these risks through their own established procedures.

It is important that the University maintains accurate information about all work undertaken to its buildings. Therefore, EM should be notified so they can advise on how best to proceed for any:

• maintenance or minor works
• alterations and refurbishment projects
• other proposed work

This is usually carried out by EM through the projects ledger on UFS and by Central and Research Accounting in the fixed assets and general ledger modules. It should be noted that using EM would also ensure the appropriate VAT treatment for buildings.

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Departmental funding of EM work

Where Departments are providing funding for land and buildings an internal invoice will not be raised. The recovery of funds will be by journal entry. This is true of both minor works and major projects. The process is as follows:

1. Departments initiate requests for Minor Works via the Academic Division/ Resource Management Committee.

2. EM only undertake such schemes once the Resource Management Committee has given its approval. The  initiating department must identify the UFS coding for its funding source.

3. EM will journal the funds from the department to EM to enable them to begin placing orders for the work. This will be done on transfer code:

• EXCC - Transfer of Minor Works Funding (EM Use Only).

4. Queries over the funding transfers themselves, if they cannot be resolved with the Academic Division, should be addressed to EM (Accounts Section).

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Building Funds

The 'P' sources of funds are used for funding received specifically or approved for buildings.

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Funding

Funding is handled through the GL and AR modules. Funding is collected to match the expenditure on a project. No project proceeds until a warrant (or internal budget) has been agreed, stating total costs and total funding.

Once a project has been identified and given preliminary approval then funding can be collated in the P source of funds. Currently if a department wishes to save for a building project then until Building Sub Committee gives approval the funds should remain in the original source of funds.

The P source of funds covers several areas:

• Specific donations for building projects either private donation, corporate or HEFCE.
• Funds held within the University for building projects.
• Allocations for building work.
• Transfers to building funds from other sources e.g. from departments.

Transfers from other sources:

These are carried out by means of a journal using the transaction code EXCC.

DEBIT: departmental account
CREDIT: the building fund

From a University perspective this is just a movement of funds from one department to another therefore; an internal invoice must not be raised.

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Expenditure

The related capital expenditure is entered via the Projects module by EM. It is shown in the General Ledger as follows:

Note that similarly to the research module, if analysis is required concerning costs then it must be done within the projects module itself, because in the GL all the costs for one project are coded to one cost centre, one source of funds and one transaction code.

Once a project is completed then the costs will be transferred from construction in progress to a land and buildings fixed asset transaction code.

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