A. ADMINISTRATIVE AND RECORDING PROCEDURES
1 The Recording of Financial Transactions associated with the Development /
Delivery of CPD
i) Financial transactions associated with the development and/or delivery of CPD should be
recorded via a Short Course (SC) account. This includes transactions associated with any of
; courses which do not lead to any form of credit or award from the University
; courses which lead to credit or an award from an external body (eg a professional
; stand alone academic credit bearing modules (ie those which are
CATS rated but not part of a full award)
; courses which lead to a Certificate or Diploma in Professional Studies
It does not include:
; courses which lead to awards of the University other than a Certificate or Diploma in
; course development work which is funded by CPD/CVE Development Funds
; courses which do not generate fee income directly as a result of the activity.
If there is any doubt into which category a particular activity falls, please contact the CPD
team for advice.
ii) Transactions include the receipt of income and the payment of course expenses such as
tutor fees, support materials, accommodation, catering.
2 Setting up a SC Account
Requests for a SC account to be set up should be directed, in the form of a memo, to CPD
together with a code-based budget (see Section 3 of this chapter). Requests should include
the proposed name of the account, its purpose and the signatures of the two members of
staff (one of whom should be nominated account holder) who will be designated signatories
to, and therefore responsible for, the account.
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3 Responsibility for SC Accounts
i) All SC accounts require 2 nominated departmental signatures. Signatories should be
appropriate members of departmental staff who are familiar with all short course activities.
Either signatory may sign financial transactions with the exception of personal expense
claims which should always be signed by an authorised signatory more senior than the
claimant. All signed financial transactions should be sent directly to the Finance Office for
End of scheme balances (credits or losses) are solely the responsibility of the managing
department, as is invoicing. The Debtors Section in the Finance Office is responsible for the
collection of income but any bad debts will be charged to the department.
ii) All SC account holders should submit, to the CPD team, a code based budget (annual
planning statement) for the forthcoming year. This must be countersigned and dated by the
Head of Department.
iii) All SC account holders (i.e. principal signatory) will receive monthly reports, which will be
generated by the Finance Office. Queries related to these should be directed to the
Management Accounts section of the Finance Office.
4 Overhead Recovery
All fee income is subject to a 10% overhead payment. The Finance Office deducts this
automatically on a quarterly basis from all new income lodged in SC accounts. Fee income
should be identified by the use (on invoices, cash received vouchers etc) of the analysis
code FEI. Income intended to cover direct costs which are not integral to course delivery is
not subject to overhead recovery. Examples of this include payment for overnight
accommodation or group travel from an airport which the University arranges on behalf of a
client. It also includes clearly identifiable course sponsorship. Income of this kind should be
Any surpluses, after overhead recovery, are retained by the department and should normally
be transferred from the SC account to an appropriate departmental one.
5 Course Expenditure
i) Payments to University Staff in Respect of Work carried out under SC Accounts
Any work carried out in connection with SC account activity is regarded as External
Professional Activity (Outside Works) by the University and is subject to associated reporting
Payments to staff who are on the University payroll should be generated through the use of
form FIN/SALS/501 “Travelling, Subsistence and other Expenses Claim Form”. Income tax
and National Insurance will be deducted from payments and departments are liable for all
employment related on-costs.
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ii) Payments to Non-University Staff in Respect of Work carried out under SC Accounts
One-off payments should be generated through the use of form FIN/SALS/101FEB99.
Note that ALL payments for work of this kind are subject to the deduction of tax and national insurance unless the individual can clearly demonstrate that he/she is working under the auspices of a company or is self-employed. This can be done in one of the following ways:
a) submission of an invoice which clearly shows that payment is to be made to a company
b) submission of an invoice which clearly shows that the individual is VAT registered
In the cases of a) and b), the invoice can be authorised and passed to Finance for payment
c) submission of appropriate documentation from the Liverpool Riverside Tax Office. Documentation from any other tax office (eg that of the individual) is not acceptable. Documentation declaring self-employed status must be accompanied by an invoice and form FIN/SALS/101/FEB99
Failure to follow these procedures can hold up payments. It is advisable therefore to discuss payment methods with contract staff well in advance of course delivery and to provide full information concerning documentation requirements. The telephone number of the Liverpool Riverside Tax Office is 0151 242 8211.
Where the contract is a longer-term arrangement, it may be advisable to consider payment through the salary system.
Detailed enquiries should be directed to the Salaries and Superannuation Section of the Finance Office.
iii) Payment of External Invoices
An Invoice Apron, duly authorised, should be attached to the front of invoices and sent directly to the Finance Office for processing.
6 Course Income
Departments should raise their own invoices in respect of course fees. This should be done via the standard University invoice pro-forma which should be sent to the Finance Office. The nominated short course account will be credited immediately. It is the responsibility of Debtors Section (Finance Office) to chase payment but bad debts will be charged to the department (see 3.i above).
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ii) Cheque Income
Income from external organisations, which is paid by cheque should be lodged directly with
the Cash Office together with a Cash Received Voucher.
iii) Cash Income
Payment by cash should be lodged with the Cash Office using a Cash Received Voucher.
iv) Internal Transfers
Course fees in respect of attendance by internal staff should be collected via an Internal
Supply Form (ISF).
NB It is advised that departments retain copies of all documentation related to financial
transactions in case of queries.
B. COSTING AND PRICING
Normally CPD courses should be self-financing. This means that they should cover all direct
and indirect costs including the 10% institutional overhead payment.
1 Advice on Costs
i) Hidden Costs
When drawing up a budget for a course, it is important to identify all costs associated with
development, promotional and delivery activities. Some costs are easily identifiable in that a
visible payment or cash transfer is generated, for example via an invoice or ISF form. Other
costs are less visible. These include the use of resources such as stationery from a central