Procedures

Revenue Sources - Procedures

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1. Purpose and Objectives

These procedures outline the University’s sources of revenue and the accounting treatment that applies to those sources.

2. Definitions, Terms, Acronyms

Revenue - the gross inflow of economic benefits during the period arising in the course of ordinary activities when those inflows result in increases in equity.

3. Procedures Scope/Coverage

These procedures apply to:

  • Recurrent and non-recurrent revenue from Commonwealth, State and Local Government sources. Recurrent revenue is that which is received frequently or on a regular basis.
  • Revenue from non-government sources of the University and its controlled entities that are under central financial management of FBS.

4. Procedures Statement

The University recognises income in the income statement, in the determination of the result for the reporting period, when and only when: an increase in future economic benefits related to an increase in an asset or a decrease of liability has arisen that can be measured reliably.

The University receives income (or revenue) from a variety of sources. The University is required to include as income only monies received from external sources. Income is inflow or other enhancement, or savings in outflow, of future economic benefits in the form of increases in assets or reductions in liability of the entity (other than capital) that result in an increase in equity during the reporting period.

The University receives income primarily from the following sources:

  • Commonwealth and Queensland Government Grants
  • Higher Education Loan Programme
  • Student Fees and Charges
  • Research Grants
  • Investment Income
  • Scholarships and Prizes
  • Donations and Bequests
  • Consultancies, Contracts and Services

The University seeks to maximise resources from a diversity of funding sources. The University must record, promptly and accurately, all types of income received from external sources. All income must be recorded as revenue and not as a reduction of expenses or other costs.

It is important to include only income received from external sources. Transactions between units do not create income and expenditure for the University but are rather an internal recovery against the expenditure incurred in providing the goods and services involved. There is no accounting gain to the University as a whole arising from such inter-unit transactions.

5. Source, Recognition and Measurement

Revenue is recognised when it is probable that future economic benefits will flow and those benefits can be measured reliably.

The University is required to use the accrual accounting method, which means that income is recognised when it is earned except where a contract or the nature of government funding does not permit recognition of income in any other period other than that in which it is received as cash by the University.

Revenue Source

Revenue Recognition

Commonwealth Government Financial Assistance & Queensland Government Funding

This revenue is recognised in the period when the grant is received.  Grants received in advance are recognised as operating revenue when the University obtains control over cash comprising the grant.

Higher Education Loan Programme

 

This revenue is recognised on the basis of the year in which the census date for final enrolments occurs. Refer to PPL 9.30.02 Student Fees and Charges for further information.

Student Fees and Charges

This revenue is recognised on the basis of the year in which the census date for final enrolments occurs.  After the census date, the University has no contractual obligation for the refund of this revenue received. Refer to PPL 9.30.02 Student Fees and Charges for further information.

Research Grants

Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the group obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the terms of funding arrangements. Refer to PPL 9.30.03 Research Grants for further information.

Investment Income

This revenue is recognised as it accrues, based on the interest rate applicable to the asset. Refer to Section PPL 9.20 Treasury for further information

Scholarships and Prizes

Grants, contributions, donations and gifts that are non-reciprocal in nature are recognised as revenue in the year in which the group obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the terms of funding arrangements. Refer to PPL 9.30.04 Scholarships and Prizes for further information.

Donations and Bequests

Grants, contributions, donations and gifts that non-reciprocal in nature are recognised as revenue in the year in which the group obtains control over them. Where grants are received that are reciprocal in nature, revenue is accrued over the terms of funding arrangements. Refer to PPL 9.30.05 Donations and Bequests for further information.

Consultancies, Contracts and Services

This revenue is recognised upon the delivery of services to the customer. Refer to PPL 9.30.06 Consultancies, Contracts and Services for further information.

Revenue write-offs

Revenue is to be safeguarded from loss and not to be foregone, waived, remitted or written off except where authorised in accordance with the University’s delegations.

Refer to PPL 1.10.02 Financial Delegations.

Copyright Agency Limited (CAL) Royalty Payments

Certain payments from Copyright Agency Limited (CAL) for published copyright works attracting royalties will be retained in general revenue.

Refer to PPL 6.40.09 Communication of Book Chapters Online (copyright) for further copyright information.

 

Custodians
Chief Financial Officer
Mr Andrew Betts
Custodians
Chief Financial Officer
Mr Andrew Betts