The Financial Policy (section 6.1) as approved by the Finance Committee states that a unique cost centre must be created for each research contract that has financial implications. Projects related to the specific research contract can be managed through this cost centre, thus reporting is clear and income sources are not mixed. The cost centre will be closed as soon as the contract comes to an end.
Guidelines for the creation of a new cost centre are set out in Section 2.1 of the Financial Policy. A cost centre application form can be downloaded from the Finances webpage.
Closure of a cost centre - Department’s responsibility:
Identify cost centres that must be closed and inform Financial Services or Financial Management Systems:
- That the balance of the cost centre equals zero.
- To which new cost centre the balance should be journalized.
- That no commitments reflect on the cost centre.
- That no assets are linked, and if so, the assets must be moved to the appointed cost centre.
- That no remuneration is being paid from the cost centre if so, Human Resources must be informed of the new cost centre.
Marinda Kotze (Financial & Management Systems) 021 808 3167