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Recharges

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Recharges

What is a recharge?

A recharge is a transaction (payment or receipt) for a service with an internal customer.

Internal customers for BCC Schools include:

  • All other BCC Schools
  • Other BCC Service Areas

The following are not internal customers

  • BLT who are a separate entity to Bucks CC
  • Legal services
  • Academies

What prompted the change?

Our external auditors (Grant Thornton) identified that schools and BCC services were incorrectly recording on SAP internal transactions as income or expenditure rather than as recharges. As a result we are exaggerating (in particular) our income / sales figures with the risk of financial misreporting and potential qualification of our Accounts.

Therefore recharge codes were introduced to ensure internal  income and expenditure was recorded separately.

The GL code list on the schools web has a list of all the recharge codes available.

Please note:-

  • GL 816066/816067 are no longer valid codes (Turn It On schools please note)
  • Some GL codes beginning with 99…. are still used for funding allocation from County (ie GL992335 Budget Share).
  • R84000 Traded Services (other) is used to cover miscellaneous service area charges not covered by the other specific codes.
  • BLT and Academies are not internal departments so payment to them should be as per invoice.
  • GL 991415 & GL 991419 should be used if no other recharge code between schools is appropriate-please check the code list.
  • Journals between non cheque book schools should use the matching contra expenditure/income recharge code-the only exception is if a correction is made.
  • Purchase of school meals from another BCC maintained school or through the Council are internal recharges. The expenditure codes GL R32000 (UIFSM) and GL R32001 contract catering (not UIFSM or FSM) apply. The corresponding income codes GL R93200 (UIFSM) and GL R93201 apply.
  • Additional government grants GL990405 (sports partnership grant). This income code is used for the school receiving the grant. Any payment of that grant to another BCC maintained school should be made using the following recharge codes GL 991415 (income code payments received from another school) and GL991419 (expenditure code payments to another school).  Please note the school transferring payment to another school will need to raise the journal as they will be incurring the debit.
  • New for 2017/18 expenditure for Bio fuels GL R22370
  • New for 2017/18 income for internal training GL R92103. This corresponds to the existing expenditure internal training R21003 code. These codes are used for recharging costs for training courses held between BCC maintained schools.

Exceptions to recharge codes

Paying invoices for your own school which include another school

  1. 1.    Utility recharges between schools
  • Sometimes a school will pay an invoice that will also include costs for another school, (for example a utility bill) –the other school will need to raise a journal to debit itself with the relevant amount and credit the school that paid the original invoice. 
  • This may mean an email & copy of the invoice will need to be sent to the school raising the journal.
  • In the above case it is acceptable for the school raising the journal to credit the other school’s expenditure code where the original invoice had been paid. This means the school who paid the original invoice will have a net cost against that expenditure code.

Example

School A share a site with School B and pay an electricity bill which covers both sites using GL223300 Electricity.

An email should be sent by School A to School B with a copy of the invoice & a breakdown of the costs relating to School B.

Using the email & copy of invoice School B raise a journal (as the debiting school) to debit themselves on GL223300 & credit School A’s DFE & GL223300. The journal will workflow to School B’s approved delegate to agree to the charge to their budget.

The net cost of electricity on GL 223300 for both schools will therefore only reflect the cost for their own school.

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