Budget Guide 2007-08

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Budget Preparation Guide

2007 / 08

7 February 2007

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BUDGET GUIDE 2007/08

CONTENTSPage

1. Introduction 3

2. Planning Assumptions 4

3. Financial Forecast and Financial Envelope 6

4. Timetable 9

5. Roles and Responsibilities 10

6. The Budgeting Process: Step-by-Step Guide 14

7. Staff Costs Permanent, Fractional, Sessional and Temporary 15

8. Budgeting for IT Requirements 17

9. Estates Capital Budgets 19

10. Soft-funded Projects 20

11. Donated Services and Gifts21

12. Ensuring Value for Money 22

13. BudgetMonitoring and Forecasting Process 23

APPENDICES

Appendix 1 Income and Expenditure Codes legendAppendix 2 Estates budgets bid formAppendix 3 Fundraising project funding request formAppendix 4 Budget Submission template

1. INTRODUCTION

This document has been introduced to provide to budget holders all theinformation that they might need to support them in the preparation of

Soji Otudeko Head of Finance Page 2

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their 2007-08 budgets. It is intended that it will be published annually aspart of the planning process thus ensuring an integrated planning andbudgeting process.

Integrated planning process - Efforts have been made in this guide to

integrate our requirements for central resources such as IT and Estates into anall-encompassing planning and budgeting process. There is a renewedemphasis on forward planning for central resource requirements. Heads ofservice in Resources, Estates, ICT, MIS, IT R&D and Development Office wereconsulted and have made valuable contributions on the processes to befollowed by budget holders for resources they will require from theirdepartments.

To ensure that the 2007-08 process is in line with the longer term strategy, the2007-08 strand of the financial forecast to 2014 has been translated into a

faculty/departmental format. The key underlying financial assumption is thatof a no-growth budget but allowing for inflation and pay awards.

Sustainable Capacity The College is the phase of transition pending ourrelocation to Greenwich. The message from the Board and the ManagementCommittee is that of maintaining our capacity levels both for students levelas well as resources at the current level. This of course takes intoconsideration the work of the Development Office in seeking external sourcesof funding as well as the initiative to develop the Asian international studentsmarket, as well as our collaborative work with Rose Bruford to deliver a jointcourse for the first time in 2007-08. To that extent the 2007-08 budget will be

a no-growth budget.

2. PLANNING ASSUMPTIONS


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Transition Budget - This budget guide relates to the on-going business asusual bit of our work. A separate budgeting process is in place to deal withour relocation to Greenwich. However a transition budget has been createdwhich will be used for academic and service developments to ensure that workpractices are aligned with our move to Greenwich.

The funding proposal sent to HEFCE for approval indicates that the College willbe contributing 2.5 million out of its reserves to fund the relocation. At theend of the 2005-06 year, we achieved 101k. An additional 239k (excludingsoft-funded projects) is budgeted for in the 06-07 accounts. Indications arethat the final 06-07 surplus will significantly increase once the mid-yearforecast outturn is completed. These funds form part of our general reserve.

Prudence dictates that we do not allocate all of our reserves on the Transitionbudget, a level of General reserves needs to continue to be made to supporton-going activities. This has traditionally been set at 2.5% of income. Adedicated Transition Fund is being set aside to distinguish our generalreserves from the transition fund. An amount of 300k has been provided forin the 2007-08 budgets to augment the Transition Fund. There is furtherpotential to allocate funds to the Transition Fund from the following pots -

2006-07 transition and contingency - 311k 2007-08 contingency - 141k

This will give a total potential fund of 752k at the end of 2007-08.Inflation and salary uplifts We have assumed an inflation allowance of 3%for non-salary costs. This has been incorporated in the financial envelope. The

staff costs will be based on the 2007-08 pay awards for each post as agreed aspart of the Hay Job Evaluation process.

Externally-funded projects Project managers are expected to produce fullincome and expenditure budgets for all soft projects that the College isinvolved in. The Management Committee has started the process of quarterlymonitoring of all soft projects. This will intensify during 2007-08.

Financial envelope -The financial envelope has been developed as a tool tohelp deliver the Colleges financial strategy. Consideration needs to be givento the five principles in HEFCEs recommended approaches to financial

strategy, which are 1. Long-term viability and matching resources with objectives2. Maintaining productive capacity to meet current objectives3. Financing development and investment4. Evaluating strategic alternatives and managing risks5. Integrating financial and other corporate strategies

Traditionally, the College has aimed to deliver a surplus budget of at least2.5% of income. The impact of the new fee regime has been evaluated; theadditional income generated will help towards meeting our future investmentin the transition budget. Consequently, we are planning for an operationalsurplus of 279k.


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Student Numbers These are based on the long-term Greenwich relocationforecast. These are financial targets, rather than target student numbers, toensure that the financial projections achieve a conservative position andminimise the risk of optimism bias. The planning figures in FTEs are as follows

PLANNING LEVEL

EU and home students 982

Overseas students 119

FE students 16-1819+

23020

TOTAL 1,351

Fee Income In total we are forecasting that we will generate 554k ofadditional income in 2007/08. This is based on the following matrix:

STUDENT NUMBERS 2007-08

Year 1Years 2 &3

TOTAL

Undergraduate Honours 402 556 958

Foundation DegreesPost Graduate 24 24

426 556 982

UG - OVERSEAS 34 53 87

PGT-OVERSEAS 1111 22

FE-OVERSEAS 10 1055 64 119

FE Under 19 230 230Over 19 20 20

TOTAL STUDENTNUMBERS 731 620

1,351


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3. FINANCIAL ENVELOPE

3.1 Financial Forecast to 2014

RAVENSBOURNE COLLEGE - FINANCIAL FORECAST

Student Numbers 1375 1351 1412 1443 1432 1429 1450 1477CHISLEHURST SITE GREENWICH SITE

Forecast Forecast Forecast Forecast Forecast Forecast Forecast Forecast

INCOME 2006/7 2007/8 2008/92009/1

020010/1

12011/1

22012/1

3 2013/14

Core Funding

HEFCE Core Funding 5,911 6,168 6,334 6,571 6,816 7,071 7,335 7,609

Widening Participation 455 467 479 492 505 519 533 548LSC Core Funding 1,037 1,064 1,092 1,122 1,152 1,183 1,215 1,248

7,403 7,699 7,906 8,185 8,474 8,773 9,083 9,404

Fee Income

Home/EU Fees - undergraduate 1,174 1,550 2,132 2,193 2,215 2,239 2,338 2,456

Home/EU Fees - postgraduate 91 100 109 112 115 121 127 134

Home/EU - Foundation 620 793 877 922 947 985 1,036 1,091

FE 16 16 16 17 17 18 18 19

Overseas Fees 813 899 926 951 977 1,014 1,053 1,094

Less Bursaries -120 -239 -350 -371 -377 -384 -402 -422

2,594 3,120 3,709 3,823 3,893 3,991 4,171 4,371

Net Commercial profit

Short course 36 37 38 47 50 54 59 63Consultancy 36 37 38 41 44 48 51 55

ephone masts 25 26 26 0 0 0 0 0

Business Incubation Services 6 6 6 11 12 14 16 18

Commercial Hire 0 0 0 27 28 29 29 18

103 106 108 125 134 144 155 154

Net sponsorship 55 103 105 54 56 57 59 60

Net Other Income

Levy 153 61 18 18 19 19 20 20

Halls of Residence - net 175 205 211 0 0 0 0 0

Interest receivable 30 0 0 0 0 0 0 0

Other student services 52 53 55 56 58 59 14 14

410 319 283 75 77 79 34 35Deferred capital grantsreleased in year

Equipment 301 334 267 198 0 0 0 0

Buildings 72 72 72 100 100 100 100 100

373 406 339 298 100 100 100 100

TOTAL INCOME 10,939 11,752 12,451 12,560 12,734 13,144 13,601 14,125

EXPENDITURE

Salary Costs

Administration 2,763 2,876 2,995 3,135 3,229 3,326 3,450 3,579Academic 2,185 2,275 2,406 2,518 2,593 2,671 2,751 2,878


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3.2 Draft Budget Envelope by Faculty/Department

RAVENSBOURNE COLLEGE OF DESIGN & COMMUNICATION

2007-08 DRAFT BUDGET ENVELOPE BY FACULTY//DEPARTMENT

2006-07 Budget 2007-08 Budget - Draft 29 Jan

Expenditure

Description IncomeExpenditur

e Income Staff costs Non-Staff Total Exp

Faculty of Design 3,015,759 1,120,614 3,185,848 1,067,969 104,607 1,172,575

Faculty of Communication 5,266,541 1,607,425 5,563,574 1,486,811 194,373 1,681,185

Foundation Diploma 1,168,945 437,207 1,234,873 422,561 35,020 457,581

Postgraduate 377,960 297,775 399,277 263,258 47,972 311,230

TOTAL COURSES 9,829,205 3,463,021 10,383,572 3,240,598 381,972 3,622,571

Student Support Services 0 275,730 0 247,779 40,479 288,258

Academic Link Tutors 0 14,991 0 15,711 0 15,711

Enterprise & Innovation 0 115,476 0 111,063 9,785 120,848

Finance 44,750 995,529 47,321 228,243 801,072 1,029,315

ICT 0 703,606 0 384,098 347,213 731,311

Personnel, Development &

Training 0 522,254 0 232,031 309,876 541,907Premises & Housing 258,532 1,076,345 273,113 190,585 921,324 1,111,909

Shop & Stores 77,000 102,506 81,343 40,721 65,560 106,281

Quality 0 526,268 0 164,884 380,004 544,888

Management Information Sys 0 155,078 0 146,802 15,450 162,252

Registry 0 378,759 0 208,081 185,614 393,696

Student Union 0 38,727 0 16,559 23,614 40,173

Learning Resource Centre 0 315,892 0 224,291 104,930 329,221

Marketing & Shows 15,000 622,806 15,846 246,077 399,640 645,717

Management 50,000 520,372 52,820 359,854 182,310 542,164

Total Administration 575,282 6,494,339 607,775 2,816,779 3,920,770 6,737,549

Ravensbourne Limited Surplus 103,000 0 108,809 0 0 0Additional Pensioncontributions 0 20,000 20,000

Contingent 0 211,323 0 0 141,037 141,037

Transition Fund 0 100,000 0 0 300,000 300,000TOTAL - COREOPERATIONS 10,507,487 10,268,683 11,100,156 6,077,377 4,743,780 10,821,157

Surplus/(Deficit) 238,804 279,000

% of income 2.3% 2.5%

Projects 617,043 350,821 651,844 0 651,844 651,844

Projects Surplus/(Deficit) 266,222 0


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Overall Total 11,124,530 10,619,504 11,752,000 6,077,377 5,395,623 11,473,000

Surplus/(Deficit) 505,026 279,000

2007/08 forecast in FinancialForecast to 2014 11,752,000 11,473,000

4. TIMETABLE

2007-08 Budgeting Process

When What Who

7 February Budget Preparation Guide is issued Soji

7 February Bid forms for capital requirements sent out. Cathy B./Soji

21February

Completed IT bids returned to Ian Hole Heads of Faculty& Heads ofService

21February

Completed Estates budget bid forms returned toCathy

Heads of Faculty& Heads ofService

5 March Faculties and departments submit draft budgets toHead of Finance

Heads of Faculty& Heads ofService

26 March Management Committee - reviewsfaculty/departmental plans & budgets (including IT

and Property capital bids) and agrees required nextsteps to ensure Ravensbourne is within budget

Soji / Ian /RachelMgt Committee

23 April Management Committee - 2nd round of budgetssubmitted, reflecting budget adjustments made in linewith decisions taken at the 26 March meeting,approves IT and Estates bids including cost estimatesand source of funding.

Soji /Mgt Committee

Approval

7 May Management Committee - Final budgets submitted forapproval

ManagementCommittee

17 May Budget papers mailed in advance of FGPC meeting Soji

13 June Finance & General Purposes Committee approves thebudget

11 July Board of Governors sign off the budget

Processing

29 June Budgets loaded onto the financial system (QLX) Soji

16 July Detailed profiled budget reports issued to budgetholders

Soji


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5. ROLES AND RESPONSIBILITIES

5.1 Responsibilities

The responsibility for producing the faculty or departmental plan is that of therespective Management Committee member. The following people areresponsible for co-ordinating the budget preparation within eachfaculty/department:

List of Contacts

Corporate Responsibilities -Planning Process Janthia Taylor & Genevieve CowcherBudgeting and Financial Co-ordination Soji Otudeko

Staff Establishment Kathy SteeleIT Capital Projects Ian HoleEstates Capital Budget Rachel Green/Cathy BlackfordDonated Goods and Services Amba Sessions

Faculties -Faculties Budget Support Business Support Officers;

Masters James Norman Foundation James Norman Communication Sarah Gaffney Design Kerry OHalloran

Support Departments -Service/Support departments Soji Otudeko

The role of the responsible person is to:

Ensure the budget holders, within their area of responsibility, are aware ofthe process to complete a budget for 2007/08

Organise the production of a budget pack to collect the data needed toproduce the consolidated budget

Circulate the budget timetable, monitor adherence to it and ensure that onthe due dates accurate and relevant plans and budgets are received readyfor consolidation

Be the focal point for their faculty/department to answer questions andqueries.

Each responsible person has a nominated Finance or Business Support Officerto assist with budget preparation. Any financial queries on issues such asassumptions, policies etc should be addressed to that individual.

Soji Otudeko Head of Finance Page10

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5.2 Budget Preparation Responsibility

BudgetCentreNo.

Description Budget Holder Finance/Business SupportOfficer

CHIEF EXECUTIVE'S OFFICEGGOV Board of Governors Robin Baker Soji Otudeko

GTEAM Directorate department Robin Baker Soji OtudekoSBUDP Relocation Robin Baker Soji Otudeko

COMMUNICATION MEDIA FACULTYCBADM Broadcasting Admin Barbara Howell Sarah Gaffney

CBTEC Broadcast Media Technology Barbara Howell Sarah Gaffney

FFOPN Broadcast Operations &Production

Barbara Howell Sarah Gaffney

CPPRN Broadcast Post Production Barbara Howell Sarah GaffneyCBCCM Content Creation Barbara Howell Sarah Gaffney

CBRSD Creative Sound Design Barbara Howell Sarah Gaffney

DDANM Computer Visualisation &Animation

Barbara Howell Sarah Gaffney

DDGRA Graphic Design Barbara Howell James Norman

DDMID Design for Moving Image Barbara Howell James Norman

FFCVA Comp Vis & Animation Barbara Howell Sarah Gaffney

FFSND Creative Sound Design Barbara Howell Sarah Gaffney

FFMTC Broadcast Media Technology Barbara Howell Sarah Gaffney

FFPPN Broadcasting Post Production Barbara Howell Sarah Gaffney

DESIGN FACULTYMLINK Academic Link Tutors Nicky Pickett Soji Otudeko

GSSUP Student Support Services Sharon Hocking Soji OtudekoCCFOU Foundation Diploma Rosy Crehan James Norman

SINDI India Project Rosy Crehan Kerry OHalloranSCHIN China Project Rosy Crehan Kerry OHalloran

DDFAS BA Fashion Rosy Crehan Kerry OHalloranDDADM Design Admin Rosy Crehan Kerry OHalloran

DDPAF BA Product & Furniture Design Rosy Crehan Kerry OHalloranDDACT BA Interaction Design Rosy Crehan Kerry OHalloran

DDINT Interior Design EnvironmentalArchitectures (IDEAS) Rosy Crehan Kerry OHalloran

MASTERS PROGRAMMES

DMIDM MA Interactive Digital Media Janthia Taylor James NormanDMNME MA networked Media

EnvironmentsJanthia Taylor James Norman

LEARNING RESOURCE CENTRELLIBY Learning Resource Centre Stephen Bowman Soji Otudeko

ENTERPRISE & INNOVATION

GEMPL Employability Janthia Taylor Soji Otudeko


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BudgetCentreNo.


QUALITYGQUAL Quality and Academic Services John OBoyle Soji Otudeko

INFORMATION SYSTEMSMMANI Information Systems Eduardo Ossa Soji Otudeko

STUDENTS UNION

SSTUD Students Union Nick Busby & TaniaHolbrook

Soji Otudeko

REGISTRYGREGY Registry Renate Divers Soji Otudeko

FINANCEGFINA Finance department Soji OtudekoXINTR I & E Interest/ Instalment

ChargesSoji Otudeko

XINVT I & E Investment income Soji Otudeko

WPENS I & E Pensions Soji OtudekoYZMOR I & E Depreciation Soji Otudeko

ICTMNETA Information Communication

TechnologyIan Hole Soji Otudeko

SREPR Photocopying Ian Hole Soji Otudeko

HUMAN RESOURCES

GPERS Human Resources Department Doreen de Bellote Soji Otudeko

GEQUAL Equal opportunities Doreen de Bellote Soji OtudekoMTRAI Training Doreen de Bellote Soji Otudeko

MSTDV Staff Development Doreen de Bellote Soji Otudeko

RESOURCES

SHOUS Accommodation Rachel Green Soji Otudeko

PPREM Estates Rachel Green Soji OtudekoGSTOR Central Stores Rachel Green Soji Otudeko

GGOFF General Office Rachel Green Soji Otudeko

MHEAL Health & Safety Rachel Green Soji Otudeko

CBSTC Broadcasting Station Control Rachel Green Soji Otudeko

SSHOP College Shop Rachel Green Soji Otudeko

MARKETINGMMAKT Marketing Department Paul Bonnici /Jill Hogan Soji Otudeko

MMAKI International studentsMarketing

Paul Bonnici /Jill Hogan Soji Otudeko

KCOME Communication Media Shows Paul Bonnici /Jill Hogan Soji OtudekoKBOSA Rave On Air marketing Paul Bonnici /Jill Hogan Soji Otudeko


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BudgetCentreNo.


KNEWD New Designers marketing Paul Bonnici /Jill Hogan Soji Otudeko

KGFWF Graduate Fashion Week Paul Bonnici /Jill Hogan Soji Otudeko

KFOUD Foundation Marketing Paul Bonnici /Jill Hogan Soji Otudeko

SOFT-FUNDED PROJECTS

SHRSP HR HEFCE-Support Doreen de Bellote Soji OtudekoSFUND Fundraising Amba Sessions Soji Otudeko

SERAS Exchange Students Dianne Taylor/RosyCrehan

Soji Otudeko

CBEXT Broadcasting External Janthia Taylor Soji OtudekoSHEW1 YCTV Project Nicky Pickett Soji Otudeko

SHEW2 Learning & TeachingDevelopment

Janthia Taylor Soji Otudeko

SHEWP Widening Participation Nicky Pickett Soji OtudekoSCAD4 Good management Practice Robin Baker Soji Otudeko

SBUDP Bromley Unitary Development Robin Baker Soji OtudekoSAAHL Aim Higher Nicky Picket Soji Otudeko

SDPRO Disability Provision Sharon Hocking Soji OtudekoSLEAN E-learning Janthia Taylor Soji Otudeko

SITC4 HEFCE Capital Round 4 Ian Hole Soji Otudeko

SHACF HE Active Community Fund Nicky Pickett Soji Otudeko

SNALN National Arts Learning Network Ruth Keynes /RosyCrehan

Soji Otudeko

SHEIF He Innovation Fund Janthia Taylor Soji Otudeko

SEDVT Emerald Fund DVT Sock Janthia Taylor Soji Otudeko

SEBIK Emerald Fund Cycle Lamp Janthia Taylor Soji Otudeko

SELUM Emerald Fund Luminaire Janthia Taylor Soji Otudeko

SEOUT Emerald Fund Outlet Janthia Taylor Soji Otudeko

SEUSF European Social Fund Mike OSullivan Soji Otudeko

SESU1 European Social Fund In ThePicture

Mike OSullivan Soji Otudeko

SITGP Innovation Thames Gateway Sonia Medin/Janthia Soji Otudeko

SJISC Design for Learning (JISC) Miles Metcalf Soji Otudeko

STQEF Teaching Quality Enhancement Janthia Taylor Soji Otudeko

SSSCH Summer School Nicky Pickett Soji Otudeko

SDIS3 Disability Round 3 Sharon Hocking Soji OtudekoSPROF Professional standards Janthia Taylor Soji Otudeko

SITC3 HEFCE Capital round 3 Ian Hole Soji OtudekoGCREA Creativity Incubator Janthia Soji Otudeko

AHEFC Higher Education Genevieve Cowcher Soji OtudekoSINDI India Project Rosy Crehan Kerry OHalloran

SCHIN China Project Rosy Crehan Kerry OHalloran


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6. THE BUDGETING PROCESS

This is a general guide. In addition, there will be function-specific guidance toreflect unique planning and budgeting issues that relate to each function bytheir respective finance managers.

The following highlights the major steps that budget holders should follow inconstructing the budget:

1. Permanent and fractional salary budget figures will be provided by the Headof Finance.

2. Budget for all external-related payments and services, for examplestationery.

3. Ensure that all direct costs, which are specific to your faculty or department,are budgeted for.

4. Liaise with Amba Sessions to ensure that expected donated gifts andservices have been budgeted for.Please bear the following in mind:

The correct list of expenditure codes for 2007-08 is attached as appendix 3.Please adhere strictly to this. Although the full list of cost codes is displayed inthis appendix, as indicated, some codes are restricted to certain departments.

If in doubt, please contact the Finance department.

Ensure that the annual budgets are phased in such a way that each monthreflects the expenditure to be incurred (or income to be received) during thatmonth. This should be for purchase orders and sales invoices raised during themonth. Finance department will ensure that appropriate phasing is done forthe students fee income.

The budget template attached as appendix 4 should be completed by thebudget holder for each budget cost centre under their control. Please type inthe budget figures for each expenditure code across each of the twelvemonths. The spreadsheet will automatically do the additions.


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7. BUDGETING FOR SALARY COSTS

Staff costs account for more than 55% of our annual budget each year.Permanent and fractional salary budgets are prepared by the financedepartment in liaison with the Human Resources department based on theagreed establishment. Preparation of the sessional staff budgets is theresponsibility of the Heads of faculty as supported by their Business SupportOfficers.

7.1 Permanent and Fractional Staff Salaries

The staff salary budgets will be based on the establishment list supplied byKathy Steele in HR. Heads of faculty and Heads of service should check withHR to ensure that they have up-to-date establishment information for theirfaculty/department. This includes staff in post and all approved vacancies.

The 2007-08 salary budgets will take into consideration the outcomes of therecent Hays job evaluation process. Agreed salary awards will be incorporatedinto the budgets based on information supplied by Human Resources and thepayroll department.

The underlying assumptions for salary on-costs are as follows:

Pay Award effective - 1 August 2007 ~ 3%- 1 May 2008 ~ 3%

Employers Pension contributions Teachers Pension Scheme ~ 14.1%Bromley LG Pension scheme ~ 9.9%

7.2 Sessional Staff Salaries

The Business Support Officers with the support of the Head of Finance (asrequired) will work with the Heads of Faculty in preparing the sessionalcontracts.

7.3 Temporary Staff

All vacancies, whether permanent or temporary, should be handled by theHuman resources department. Managers have salary budgets which cover theagreed establishment for their departments, including vacancies.

Exceptional occasions where temporary staff can be recruited include


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Filling vacancies in the short term due to a permanent staff vacancy,while recruitment is underway. We will expect temp salaries arising fromrecruitment to be offset against permanent staff salary savings.

Known seasonal ad-hoc workloads that are agreed in the staff complementas temporary rather than permanent.

Where you have obtained HR approval to fill a temporary post, this will haveto be paid for from your departmental budget. Do bear in mind that temporarystaff employed through an agency, will incur agency fees, which includenational insurance, holiday pay and VAT.Should bids for new posts be agreed, budget holders must ensure that all non-salary costs e.g. computers, desks and telephones have been budgeted forand that the relevant head of service (e.g. Head of ICT for computers) havebeen notified.


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8. BUDGETING FOR IT REQUIREMENTS

8.1 Process for Applying for New IT project

The Management Committee has ultimate responsibility for approving all

requests for major items of IT expenditure. The IT Steering Committee (ITSC)

however is responsible for delivering the IT Strategy.

Budget holders should bear in mind that capital expenditure is agreed with

HEFCE. A glance at the list of strategic objectives for the year, and the HEFCE

Round 4 projects indicates that there is very little wiggle-room. Whilst ITSC

could from time to time rearrange, or in extremis, change, strategic

objectives to meet emerging needs, its more direct function is to feed into

strategy and strategic objectives for following years, and to inform the

contents of HEFCE capital round bids. All of this should arise out of consensus

over which projects are likely to uphold institutional aims.

So, unless the heads of ICT and IS have voids in their annual plans, and are

looking for these to be filled by significant project work, ITSC will either

recommend a project be added to strategic plans, reprioritise plans in order

to bring a project forward, or reject a proposal as undoable within existing

constraints.

Faculties and departments should complete project mandates for any new IT

project, making the business case and including full costing and risk analysis,

and submit these to the

Head of ICT for software or equipment for learning and teaching,

Head of IS for business information systems, or

Head of ICT R&D for systems that facilitate interaction without specifying

the parameters.

For clarification, software for a lab or a new computer lab is the responsibility

of ICT. Software in support of an enterprise process (e.g. HR, Finance and

Student Records) is the domain of IS.


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ICT R&D provides consultancy and advice in identifying software and systems

that are compatible with the organisations infrastructure and future plans.

Software and systems that are aimed at enhancement or transformation, and

can't have a goal expressed except in those terms are the role of ICT R&D.

In reality the distinction is not always clear-cut; it is inevitable that projects willinvolve both ICT and IS. For example ICT provides infrastructure andpurchasing support to all kinds of projects, and many research projects needto draw on the outputs of enterprise systems. When a project involvescombined issues, ICT and IS will mutually consult each other before the ITSC.Such projects will be conducted collaboratively.

The head of ICT or the Head of IS, in consultation with the head of ICT-R&D (or

in mutual consultation when necessary), will advise on priorities according tothe IT strategy, and prepare a draft recommendation for the consideration of

the IT Steering Committee (ITSC).

Faculty and departmental heads will be expected to ensure that any mandates

they produce comply with the Colleges strategic priorities and plans, prior to

them being considered by the Steering Committee.

Issues to consider in preparing your mandates

Where budget will be held; budget holders, ICT or IS revenue, or capital

Source of funding; Capital - HEFCE round 4, others. Revenue ICT or ISrevenue budget, or budget holders revenue budget

Ongoing cost of support and maintenance

Life of project and replacement. Is the project sustainable?

Extra IT resources to run the projects; staffing, training, maintenance,

software, warranties, environmental considerations (eg air conditioning,

power)

Is external resource required, on top of our internal resources, to deliver the

project?

Impact of the project who are the beneficiaries, and how will the effects

be realised?

A proforma has been designed to capture the issues above and to ensure

standardisation. This will be available on the ICT website. Please contact the

Head of ICT if you have any queries.


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9. ESTATES CAPITAL BUDGETS

All requests for property-related capital expenditure should be made to CathyBlackford, the Estates Manager. Cathy will consolidate the requests andpresent to the Management Committee for approval.

Estates department has developed a bid form (see appendix 1) that should becompleted in support of your requests. This submission form is for requests forappropriate works to be undertaken by the Estate Department duringAcademic year 2007/08. This bid form should not be used for generalmaintenance issues, these requests should be submitted via the normalmaintenance request form.

A submission will not automatically result in requests being included in theEstate budget for 07/08. All requests for works will be considered in contextwith College strategic plans and budget constraints.

The timetable in section 4 contains deadlines for the various activities withinthe process, the key features of which are as follows

Bid forms have been sent out as part of the Budget Guide.

The forms are to be completed and returned to Estates manager by 21February.

The bids will be presented to the Management Committee for theirconsideration and approval.

The list of approved projects will be sent to budget holders afterManagement Committee meetings meeting of 26 March.


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10. SOFT-FUNDED PROJECTS

This will be the first year that we will be asking for information on the soft-funded projects. Each project manager should put in their best estimates ofwhat this will look like in 2007-08 for both income and expenditure. Please usethe budget template in appendix 4 for your submission. The estimates shouldbe profiled over each of the twelve months in line with when the income isexpected to be received, or the expenditure will be incurred. You are alsoexpected to provide the rationale behind your submissions.

Periodic performance reviews will be carried out by the ManagementCommittee during the course of the year. Project managers are required tocomplete the quarterly projects pro-forma, as approved at the ManagementCommittee, for each project they are responsible for. This will give us anopportunity to re-visit our assumptions and provide a basis to improve theprocess for the following years.

The current list of Soft-funded projects and their project managers can befound in section 5 of this guide.


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11. BUDGETING FOR DONATED SERVICES AND GIFTS

Gifts in kind (GIK) arise where goods or services are donated to the collegerather than being purchased by the college. The gift on offer should furtherthe aims and objectives of the college. This can be determined either by thegoods or services already being in budget, or a decision being made by theDirector, the Director of Finance and the relevant Head of faculty or service.

All gifts in kind over 1,000 in value must be recorded in the collegesaccounts. Efforts should therefore be made to budget for all expected gifts in

kind. This will ensure that the receipt of the GIK does not result in the budgetholder being shown as overspent by the value of the gift.

If the gift received was in budget the recipient will be charged for the gift andFundraising will show the income. When not in budget an agreement will bemade between the relevant Head of faculty/service, fundraising and financeon its treatment.

Accounting rules require that GIK donations are reflected in the accounts at afair value. The object of fair value measurement is to estimate an exchangeprice for the goods or services, in the absence of an actual transaction. Fairvalue is described as the amount for which goods or services could beexchanged between knowledgeable, willing parties in an arms lengthtransaction. This statement effectively requires reference to an open marketvaluation wherever this is possible, practical and cost effective to obtain.Should this not be reasonably possible to obtain a market valuation, the headof fundraising and the receiving department should agree on the estimatedvalue supported by a logical argument.

Examples of donated goods and services:

Donation Valuation approachi Donated item of equipment

Check catalogue price inclusive ofVAT

ii Donated services Find out costs of similar servicesalready used

iii Seconded member of staff

Ravensbournes equivalentsessional hourly rate (including on-costs) x number of hours service

iv Volunteers time No valuation required


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12. ENSURING VALUE FOR MONEY

The College aims to ensure that we continue to;

Achieve Best Value for all goods & services; Strive to reduce non-essential spending particularly around consumables;

Create head-room for developments and flexibility.

Overall, we should strive to ensure that the financial framework is sustainable in the

long-term and that we use resources in the most effective and efficient way.

During 2006/07, the management committee approved a savings target of85,000 at the corporate level. We have started using the managementaccounts to identify areas of over and underspends across all expense lines.The analysis of these variances will intensify during 2007/08 with the objectiveof ensuring that we have a clearer understanding of our spending patternsthereby enhancing our financial management.


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13. BUDGET MONITORING AND FORECASTINGPROCESS

This section describes the process of monitoring financial performance,particularly adherence to budgets, explanation of variances and how theyimpact on management decision-making.

Management Accounts Produced monthly, show the financial performanceof each faculty and department as well as corporately for each line of incomeand expenditure. Actual performance is compared to budgets and variancesare investigated and reported. There is a focus on staff costs (over 55% of ourcosts).

Each budget holder also receives a more detailed set of accounts, specific totheir budget centre, showing budget performance for the month, and year todate, for each item of income and expenditure. It also shows how much of theannual budget is available to spend.

Payroll List This is a report generated by the payroll and sent to the budgetholders quarterly. It shows the names and FTEs on payroll for the month. The

budget holders/managers check these and report back to payroll.

Forecasts - At the end of each quarter (with the exception of quarter 4),working with the Head of Finance, each faculty/department is expected tosubmit a forecast outturn for the year. Deviations from the budget arehighlighted and investigated. This gives a roadmap of the months ahead andis key to management decision-making.


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Appendix 1ESTATE BUDGET BIDS 2007/08

NOTES

This submission form is for requests for appropriate works to be undertaken by the Estate

Department during Academic year 2007/08. This bid form should not be used for generalmaintenance issues, these requests should be submitted via the normal maintenance requestform.

This form must be submitted via email to the Estate Manager no later than XX February 2007.Applications received after this date will not be considered for inclusion in the 07/08 budget.

A submission will not automatically result in requests being included in the Estate budget for07/08. All requests for works will be considered in context with College strategic plans andbudget constraints.

Name:

Department/Faculty:-----------------------------------------------------------------------------------------------------------------Description of Works Requested:(Include details of any cost estimates if known)

Location:

Justification:(If a health and safety issue attach the appropriate risk assessment)


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Appendix 2

PROJECT FUNDING REQUEST

Please complete this form at least 6 months prior to actual project start date to ensure funding applications

can be submitted and reviewed by the Management Committee. Projects will be assessed and selectedaccording to how well they match the criteria stated below. If successfully selected, fundraising will beundertaken with external sources. The Development Office will inform you if your project has been selectedwithin 4 weeks of submitting the Project Funding Request.

Please ensure you fill in all sections otherwise the Development Office will be unable to submit your projectfor review.

FUNDING CRITERIAYour project must demonstrate at least ONE of the following objectives:

Improve diversity through providing transparent opportunities to develop civic engagement

Support student excellence

Widening access for disadvantaged and/or under-represented students

Improving student and/or the Ravensbourne-user experience

STAFF NAME: __________________________________________________________________

COURSE TITLE: _________________________________________________________________

FACULTY: ______________________________________________________________________

DATE OF PROPOSAL: ____________________________________________________________

NAME OF PROPOSED PROJECT: ___________________________________________________

PROJECT START DATE: ___________________________________________________________

LENGTH OF PROPOSED PROJECT:_________________________________________________

PLEASE EXPLAIN THE ACTIVITY FOR WHICH YOU ARE SEEKING FUNDING AND HOW IT FITS WITH THESTATED FUNDING CRITERIA. (MAX 50 WORDS)

PLEASE GIVE A BREAKDOWN OF THE COSTS OF YOUR PROJECT


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FOR OFFICE USE ONLYDATE RECEIVED: APPROVED(Y/N): DATE NOTIFIED:

S ji Ot d k H d f Fi P 26

Documents

Budget Guide 2007-08