| Q cc Example

Example - The Adjustments Cost Centre

1) Initial University Budget and Operating Budget

The University Budget has been broken down to a detailed level and the Operating Budget and University Budget match, with no variances. This would normally be the position at the start of the year.

2) Operating Budget Changed

The Operating Budget has been modified for Cost Centre 3 and now the Operating Budget matches the University Budget overall, but there are differences for line items. Rather than permit this, we apply adjustments as shown below.

3) Adjustments Cost Centre used to ensure Operating Budget matches University Budget

Budgets have been posted to the Adjustments cost centre (the 'Q' cost centre) to ensure that the Operating Budget matches the University Budget. Further changes may be made during the year by agreement with the Finance Manager. At any point, the Adjustments cost centre presents a picture of the variances (if any) between the Operating Budget of all of the other cost centres and the University Budget.