How the operating grant is allocated in the University's ledger
The operating grant allocated to each budget unit is transferred to individual ledgers using the budget class account 'BC15' (Operating Grant). This account can be viewed as the link between the University's recurrent income budget and the local area income budgets. BC15 must balance back to zero across the University's ledger.
The above concept can be broadly illustrated as follows:
Central ANU Income Budget
Total Local Area Budgets
The BC15 account balances offset each other and come back to zero.
Once the allocations are made to budget units, they will generally not vary (NB: the Vice-Chancellor sometimes makes subsequent additions to the budget and they can either be one offs or ongoing in nature).
Any variations between actual recurrent income and budgeted central recurrent income are not passed on to budget units. Instead, there is a balancing mechanism in the budget (a contingency) that will generally absorb actual income surpluses or deficits. The Vice-Chancellor controls this budget item.