The FRS 102 project is now coming to an end, with the July 2016 year end accounts (2015/16) being the first to be prepared under the new regulations.
In preparation for producing the 2015/16 year end accounts under the new regulations and procedures, the April (Quarter 3) month-end reporting will be prepared under FRS 102.
In order to do this the following changes will be put through the finance system during April:-
- The 2014/15 results will be restated, with all amendments being posted into the specially created periods 201313 and 201413;
- Opening balances for 2015/16 under the new regulations will be posted to 201500. A separate message will be sent out when these adjustments have been posted so that any queries can be updated;
- Budget adjustments for 2015/16 will be posted by Financial Planning (FPA) to include code restatements for the previously advised Chart of Accounts changes. This will ensure that the roll-forward budget for 2016/17 is on valid codes for next year and will not include any account codes due to be closed. These budgets will be transferred on a standard equal 12 month basis (except Kent Hospitality). If there are budgets that have been phased differently and you feel this will be an issue please let FPA know. For information purposes, FPA will separately email each school and department with a spreadsheet showing the adjustments to the relevant account codes;
- Actual results for 2015/16 to date will be restated. This will be done by the Financial Reporting team on a month-by-month basis to ensure comparatives for next year are correct.
The main changes that schools and departments can expect to see from April onwards are:-
- Income from Donations and Endowments will be recognised in full as soon as the University is entitled to receive it. For Donations and Endowments with restrictions, any unspent balances will be taken to separate ‘restricted’ or ‘endowment’ reserves. In order to ensure that there is no impact on the operational surplus or deficit for schools and departments, a central adjustment for ‘transfers to/from restricted reserves’ will be posted on account code 6603.
- For schools these separate reserve transfers will be visible on budget statements, below the F&R surplus/deficit line;
- For professional service departments these reserves will exist but will not be visible on the budget statement until we have the opportunity to rewrite the format of the reports;
- Fee Waivers are to be presented as a reduction to income instead of being charged as expenditure;
Please note, the majority of the FRS 102 adjustments will only affect the University on a central level and not individual schools and departments.
Once again, we point you in the direction of the Chart of Accounts changes – see Spreadsheets attached to the Financial Reporting Website. Please remember that any codes that are due to be closed will not function after 31 July this year.
If you have any queries with regards to either FRS 102 or the Chart of Accounts changes, please contact Richard Warnham (r.warnham@kent.ac.uk or ext. 7976)