Finance Forum

18 September 2013

OVERVIEW OF FINANCE FORUM• Welcome and Overview

David Sturgiss

• The 2014 Budget

Melissa Abberton

• TM1 Budgeting

Trevor Langtry

• Annual Financial Statements 2013

Rachelle Conry• Assets Update

Samantha Chan• Procurement

Tim MacPherson

• Morning tea

• Travel System

Maggie/Leo• Accounts Payable – Workflow

Trevor Langtry• General Discussion Topics

Everyone

218 September 2013

Welcome and Overview

David Sturgiss

318 September 2013

The 2014 Budget

Melissa Abberton

Main Factors Impacting the 2014 Budget• The MYEFO announcements in November 2012

- $11 million• The 2% Efficiency Dividend announced in April 2013

- $8 million• Removal of Facilitation Funding - $4 million• 2% Pay rise - $15.3 million• Deferral of savings to be realised from service process

improvements from 2012 Admin Reviews - $7 million

518 September 2013

Main Factors Impacting the 2014 Budget• “Solving our Budget Challenges” program introduced

to compensate for lost revenues • $21.450 million in savings need to be found• Of these savings $20.250 million to be found from

the recurrent budget• This will still deliver a University deficit of $32.1

million in 2014 before we achieve a small surplus of $6.5 million in 2015

618 September 2013

How to Allocate the $20.250 million?• The Senior Management Group (SMG) agreed to

use the Transparent Budget Model as the mechanism to deliver the savings

• At the SMG retreat a number of modelling options were assessed to determine how the savings should be allocated

• This has lead to some changes to the 2013 Budget Model to be adopted for implementation in 2014

718 September 2013

8

SO WHAT IS DIFFERENT IN 2014?A Budget Solutions Repositioning Adjustment will reduce Allocations

• For Colleges this will reduce all Revenue Streams so applied to:

NIF, HECS/CGS, all RBG schemes, DTF & ISF

• Academic & Administrative support share of savings applied in proportion to their share of total support area Operating Grant allocations

DTF Allocation Rate will Change

• Equalise the DTF and HECS/CGS allocation rates to more equitably distribute domestic student overheads

HECS/CGS allocation rates across Colleges will be Harmonised

• All allocation rates will be the same

• Reclassify the Medicine and Law subsidies as “Off the Top Deductions”

Apply Overhead Charges to HDR Fee Waived Revenues

• Apply overheads to HDR Fee Waiver load in the same way as overhead is applied to other students with waivers and internal sponsorships

• Applied only to Commencing Load in 2014

18 September 2013

Distribution of the Repositioning AdjustmentRevenue Stream

% $

NIF 32.9% 6,671,652

CGS/HECS 22.0% 4,445,164

RIBG 2.4% 491,158

JRE 3.3% 677,775

RTS 6.5% 1,322,794

SRE 2.0% 406,838

DTF 7.0% 1,415,248

ISF 23.8% 4,819,371

Total 100.0% 20,250,000918 September 2013

Changes to Allocation Rates

Rate Previous Rate New Rate

CGS/HECS 60.5% 65.7%

DTF 70.0% 65.7%

Estimated Impact of HDR Fee Waiver Overhead Charge @ 46% of Commencing Load:

CAP $45,807

CASS -

CBE $27,678

CECS $177,394

COL -

CPMS $192,339

COMBE $105,945

1018 September 2013

What Else……..• RTS is based on 60% historical and 40% performance based

allocation in line with the transitional formula introduced in 2013

• Student load modelling uses actual fee rates rather than averages and calculated at AOU

• No fee grandfathering from 2014

• Workers Compensation Levy % likely to rise

• Pay 27 treatment

• Upfront Deduction for utilities and network service charges

18 September 2013 11

Watch this Space……..

• A Capital Development Plan• Student Load Planning• TM1 Budget Model

18 September 2013 12

A Capital Development Plan• Should be part of the annual budget process • Should be based on a 6 year rolling timeframe• Integrated with the financial statements and the transparent

allocation budget.• Capital expenditure levels should, as a minimum match, the overall

level of depreciation expenses.• Strike an appropriate balance between minor works and major

capital projects.• Priorities should be evidence based

• Priorities should be determined by the SMG.

18 September 2013 13

Student Load Planning• PASS has developed new student load

models to project commencing and continuing load by program

• Will be further developed during 2014 to more fully integrate with the Budget Model for projecting tuition fees and allocatiing HECS/CGS revenues

1418 September 2013

TM1 Budget Model

• Performance Issues Resolved• Web based delivery increasing flexibility & portability of

the model• Salary model enhancements – budget at School Level• Consistency between data input and report output• Period 9 Data and 2014 Reporting Structure Loaded• Go Live week beginning 9 September 2013

1518 September 2013

2014 Budget Timetable – Key Dates

16

KEY DATE DELIVERABLE

3 & 4 September

Senior Administrators Retreat

9 September TM1 Budget Model available

30 September

Draft Budget Advice Sheets Issued

Budget Policy & Guidelines Released

16 November

TM1 Budget Model Closed for Recurrent and Trading Ledgers

22 November

University & Allocation Budget Considered by Finance Committee

End December

Final Budget Advice Packs issued incorporating final Commonwealth Grant outcomes

17 January 2014

Final Budgets Uploaded into ES Financials18 September 2013

TM1 Budgeting

Trevor Langtry

September 2013

TM1 - Update

1818 September 2013

Agenda

• What’s Different• Help & Documentation• What’s Available - Data• Main Menu• Salary Template• Operating Budget• Reports

1918 September 2013

What’s Different

• Access via a web browser - http://fbs.anu.edu.au/accounts/tm1-budgeting

2018 September 2013

What’s Different – cont.

• Supported browsers:– IE 6, 7, 8– Firefox – not supported but appears to work– Chrome – don’t bother– Other – Untested

• Access to client install has been removed

2118 September 2013

What’s Different – cont.

Web Advantages:• Easier Deployment• Auto Calc – don’t have to turn off• Unable to accidently delete formula’s• No Confusion re Excel features• Improved Mobility• Can run a separate instance of Excel• Use off campus via a VPN (https://anuvpn.anu.edu.au)• Easy to export to Excel for quick report

2218 September 2013

What’s Different – cont.

• Accounts Codes:– Budgeting is at a subset of the account codes– Reporting will include all account codes

• Budget Data Entry Screens:– No longer contains prior year data– Only used for budget entry– Includes an additional 2 years of projections– Recommend running the Budget Summary report on

second screen

2318 September 2013

What’s Different – cont.

System Performance

Hopefully

and not

2418 September 2013

What’s Different – cont.

Salary:• Comments field added• Increased max limit for additional staff• Fixed issues re account code mapping• Fixed bugs in drop down lists• Can salary budget for a whole

department/budget unit

2518 September 2013

Help & Documentation

• Call – Ext 54321and follow the prompts• Email – fbs-bso@anu.edu.au• Doco - http://

fbs.anu.edu.au/accounts/tm1-budgeting• Request Drop In Session – Call or Email

BSO

2618 September 2013

Documentation – Available on Web

2718 September 2013

Documentation Cont..

2818 September 2013

Documentation Cont..

2918 September 2013

3018 September 2013

What’s Available - Data

• Budgeting for 2014• Forecasting – untested and data not populated • Original Budget for 2013 – Loaded from P/Soft

Financials• Actuals for 2013 loaded to P9• Salary Date – extracted from HR 6th September• Chart fields and Tree Structure - extracted from

Finance 6th September

3118 September 2013

Main Menu

3218 September 2013

Salary Budget Entry Template

3318 September 2013

Operating Budget Entry

3418 September 2013

Reports Cont..

3518 September 2013

Questions?

3618 September 2013

Annual Financial Statements (AFS) 2013

Rachelle Conry

Financial Reporting at ANU

• Internal (Management) Reporting• External (Financial) Reporting• AFS is one of the major External

Reporting Items• Reported on an Accrual basis• Includes ACTUAL (cash) & FINANCIAL

(non-cash) entries

3818 September 2013

AFS Overview

• AFS are produced each year by the ANU in line with the following regulations:– Commonwealth Authorities and Companies Act 1997

(CAC Act)– Australian Accounting Standards– DIICCSRTE Financial Statement Guidelines for

Australian Higher Education Providers– Finance Ministers Orders (FMOs)

3918 September 2013

AFS Overview

• CFO is responsible for delivery inc. signoff by the Australian National Audit Office (ANAO), Audit Committee, Finance Committee, Council, Vice-Chancellor & Chancellor

• The process is managed by F&BS but is a collaboration with the Colleges and Service Divisions

• Packs are completed by each Budget Unit & signed off by the Principle Delegate

4018 September 2013

AFS 2013 – Process & Packs

• Full update – November Finance Forum• No major changes for 2013• 2013 Packs available in October inc.

confirmed timings• 2012 Packs

– Instructions, schedules, year end journal rules – http://fbs.anu.edu.au/reporting/financial-reporting/annual-financial-state

ment-basics

4118 September 2013

AFS 2013 – Land, Buildings, Infrastructure, Plant & Equipment (LBIPE)• Plant & Equipment (P&E) and Inventory

Stocktakes to be returned to F&BS in early December

• 2013 Revaluation - Land & Rare Library Material inc. Noel Butlin Archives

• AMS closes 1st week of December• Work In Progress (WIP)

4218 September 2013

AFS 2013 – Other Balance Sheet Items

• All Asset & Liability accounts require reconciliation

• Recs to be submitted electronically – .xls & .pdf (signed version)

• Comparing ES Financials information to original source

4318 September 2013

AFS 2013 – Ledger Maintenance

• Asset Reconciliations• 7xxx (transfer) & 8xxx (internal sales &

purchase) Reconciliations• 51xx – Equipment Purchase Review• 9370 – Proceeds from Sale of Assets

4418 September 2013

AFS 2013 - Other Items

• Description for vouchers to contain the year when the goods/services received

• Chasing 2013 Invoices• 2013 Packs to be submitted electronically

– .xls & .pdf (signed version)

• Delegation needs to be arranged for an appropriate officer where the principle delegate is on leave

4518 September 2013

AFS 2013 – Provisional Timing

• Friday 6 December:– Plant & Equipment Schedules

– Store Stock Schedules

– Last day for adjustments in Asset Management System

• Friday 13 December:– Last day for Vendor Additions

4618 September 2013

AFS 2013 - Provisional Timing

• Wednesday 18 December:– Pay 26 to be sent

– Last AP runs for 2013 (draft, chq & TT)

– Last day for AR invoices

– Last day for banking foreign drafts

4718 September 2013

AFS 2013 - Provisional Timing

• Thursday 19 December:– Last AP EFT run for 2013

– Last day for direct debits for Halls & Colleges

– Last day for Courier Run

– Pay 26 re-banks

– Last opportunity to run Outstanding Encumbrances Report for 2013 data

4818 September 2013

AFS 2013 - Provisional Timing

• Thursday 19 December (cont.):– Last day for AP Vouchers for 2013

– Last day for entering ACTUALS, FINANCIAL & STD_BUDGET Journals

– Access to ESP Financials closed at 5pm

4918 September 2013

AFS 2013 - Provisional Timing

• Friday 20 December:– All receipting points must be deposit listed by

11am

– Access to One-Stop (Receipting) closed at 11am

5018 September 2013

AFS 2013 - Provisional Timing

• Thursday 2 January:– One-Stop reopened after 10am

– ESP Financials reopened after 12 noon

– First day for Vendors & AR Invoices after 12 noon

• Friday 3 January:– First AP runs (EFT, TT, draft & chq)

5118 September 2013

AFS 2013 - Provisional Timing

• Friday 10 January:– Last day for year end journals

– All AP invoices received in 2014 relating to 2013 goods & services should be processed by 5pm

– All AR invoices relating to 2013 goods & services should be processed

– All other AFS Pack Schedules due

5218 September 2013

Assets Update

Samantha Chan

Asset Key Points

• Activities at college level impact on the overall university’s financial position– For e.g. payments coded to 5xxx instead of 3xxx

5418 September 2013

Asset Key Points

• Asset Management System (AMS) is a subsidiary ledger of the General Ledger (GL)

• The two ledgers need to balance at the end of each period– Asset reconciliations– Remember that you have to manually add assets to AMS where you have processed a

payment fulfilling the asset capitalisation criteria. Manual for AMS can be found: http://fbs.anu.edu.au/training --> Asset Management.

55

AMS GL

18 September 2013

AMS vs. GL

• AMS– Holds asset detail information

» For e.g. serial IDs, colour, location, make of the asset» Relevant for stocktake

– Posts Financial entries (to the GL)» Depreciation, addition, disposal entries etc.

56

AMS

GL

18 September 2013

AMS vs. GL

• AMS automatically calculates and posts depreciation to the GL

• AMS automatically posts entries on asset transfer– Business units do not need to process an actuals journal entry, unless they want this reflected on a cash

basis (i.e. on FMR). Where this is the case, please contact srli@anu.edu.au.

5718 September 2013

Asset Key Points

• Assets need to be held in the same R department in AMS as in the GL

» GL side: Voucher payment on R24100, » AMS side: Asset to be added to R24100 as well (If not, AMS and GL are not reconciled.)

» Please note that assets cannot be held across multiple departments in GL (3xxx) and AMS.

58

GLAMS

R 24100 R 24100

SAME

R DEPARTMENT18 September 2013

Final note on Assets

• Training is available! – Need a refresher? Got new staff members managing assets?– Please contact Sam on x58776 or email: samantha.chan@anu.edu.au

• Quick links to asset information on the web:– http://fbs.anu.edu.au/reporting/assets – Forms: http://fbs.anu.edu.au/forms/asset-management – AMS user manual: http://fbs.anu.edu.au/training --> asset management

5918 September 2013

Procurement

Tim MacPherson

Major Office Machines(Multifunction Devices, Printers, Scanners and Faxes)

61

Note: As the University pricing for or previous contract has now expired, these savings are calculated against the current non-MOMs government pricing with the applicable discounts from our previous contracts applied. This methodology enables comparisons against newly released models and takes market price shifts in to account.

Savings for Period February 2012 to August 2013

Contractor # Machines Purchase CostCost Previous

ContractsSaving $ Saving %

Konica 83 $434,870.58 $626,188.00 $191,317.42 30.60%

Copy charge   $61,184.50 $100,798.19 $39,613.69 39.30%

Fuji 79 $275,503.20 $515,898.00 $240,394.80 46.60%

Copy charge   $29,736.77 $48,909.16 $19,172.39 39.20%

Lexmark 7 $6,709.50 $10,300.00 $3,590.50 34.90%

           

Total   $808,004.55 $1,302,093.35 $494,088.80 37.90%

18 September 2013

Major Office Machines (cont.)

• Compliance at ~98%• Product range updates

Specification comparative• Whole-of-life cost comparative• Automatic meter readings• Invoicing – Fuji Xerox• Non-mandated suppliers (Canon, Toshiba etc.)

Managed Print Services

6218 September 2013

63

Stationery and Office Supplies

• 15,185 transaction lines (3079 products)• 1,295 not matched (880 products)• DoFD add new products each month, enabling additional items to be added to the matching list

Savings for Period February 2013 to August 2013

University Group

OfficeMax Cost Corp Express Price Saving $ Saving %

ADMIN $190,466.23 $355,874.78 $165,408.55 46.48%

CAP $71,499.21 $146,144.59 $74,645.38 51.1%

CASS $52,784.27 $119,413.97 $66,629.70 55.80%

CBE $39,799.06 $83,950.24 $44,151.18 52.6%

CECS $10,809.47 $25,995.66 $15,186.19 58.42%

CMBE $95,341.10 $200,369.29 $105,028.19 52.4%

CoL $25,559.24 $43,012.95 $17,453.71 40.58%

CPMS $47,586.57 $120,421.72 $72,835.15 60.5%

         

University Total $533,845.15 $1,095,183.20 $561,338.05 51.3%

18 September 2013

Stationery and Office Supplies (cont.)

• Compliance at ~99%• Furniture exemptions• University OfficeMax Administrators• GL codes – contact your Finance Team• OrderMax re-skin

6418 September 2013

Budget Solutions – Non-staffing

• F&S – Energy Savings (Shane West)• ITS – Workspace Project (Anne Kealley)• UPCO - Travel (Airfares & Accommodation)• UPCO - Pool Vehicle Rationalisation

• ITS – Mobile & Fixed Line (TBA)• HR – Staff Recruitment Agencies (TBA)• HR - Temporary Staff Agencies (TBA)• UPCO / Marketing – Publications & Printing (TBA)

6518 September 2013

Morning Tea

Recommence in 20 minutes

Travel & Expense Project Update

Maggie & Leo

68

Overview

• Business process workflow• Travel request entry screen • Collaborative email function • Integration with Expenses module• Web services integration• Outcomes/Benefits• Project status update• Future enhancement

18 September 2013

Proposed Business Process

69

Step 1Applicant

Initial Travel Request

Step 2Immediate SupervisorEndorsement on Travel

Request

Step 3Travel Administrator

Validate Travel Request

Step 41st Approver

Domestic Travel Request Approval

Step 52nd Approver

International Travel Request Approval

· Complete Travel Information, Travel Plan, Risk Assessment, and Travel Budget

· Attach relevant forms (OSP,FBT, Advances)

· Endorse travel request

· Request for more information from the applicant

· Endorsement can be done through collaborative email

· Validate for correctness and completeness of travel request

· Amend or update travel information as required

· Change and re-route to different supervisor/Approver for endorsement/approval

· Request for more information from the applicant

· Approve/reject domestic travel

· Approval can be done through collaborative email

· Approve/reject International travel

· Approval can be done through collaborative email

· Complete checklist once returning from travel (Travel diary, Reimbursement, FBT)

18 September 2013

Other Enhanced Functionalities

70

• Process per-diem and advances requests through OCR workflow and pay through Accounts Payable

• Automatic email reminder for travellers upon returning from their trip to complete travel diary or advance acquittals if applicable

18 September 2013

Travel Request Entry

Travel Information

7118 September 2013

Travel Request Entry Travel Plan

7218 September 2013

Travel Request Entry

Risk Assessment

7318 September 2013

Travel Request Entry

Travel Budget

7418 September 2013

Approval by Collaborative Email• Approval can be done through either collaborative email or via system log on.• Collaborative email has an at-a-glance (tab free) layout with approval/reject functional

buttons

7518 September 2013

Update to Travel Expenses in PeopleSoft Financials

7618 September 2013

System Integrations through Web Services

• PeopleSoft Financials– GL validation (Fund Department Project)– ANU Tree Structure – Travel Administrators

• PeopleSoft HR/Campus Solutions– Personal Data ( Relationship to ANU, College, Program Plan, Emergency

contact)– Approval delegation– Staff/Students supervisor

• LDAP – Log on credentials

• DFAT- Smart Traveller– Country Risk Level

7718 September 2013

Reporting • Travel & Expense Costing Report

Provides a full costing for travel events, and including reconciliations between actual and budget for each travel events

• Traveller Location ReportThe ability to track travellers by location for a given date range, and DFAT categories.

• Other Reports to be determined

7818 September 2013

Outcomes/Benefits

• End to end process on a single platform• Duty of care reporting• Electronic enabled workflow process• Standardized efficient process across University• Executive reporting on travel costing• Elimination of paper based process on per-diem,

advances, and reimbursement

7918 September 2013

Project Status Update

• Testing commence in early September• Pilot move into CAP• Pilot review with CAP through weekly meetings• Concurrent developments by ITS

– In built Travel Diary and acquittals– In built FBT calculator (pre and post travel) as compared to

current manual form attachment– In built Per-diem calculator – In built Risk Assessment and approval workflow– Development environment is currently used for testing purpose– Acceptance environment will be required for pilot phase.

8018 September 2013

Future Enhancements

• Proxy Function– Travel Administrator can create travel request on behalf of

others

• Advanced Integration with HR – Flag/update Employee Leave record with absence type travel

when a travel request is raised and approved in BPM– Flag/update assignment of delegations when the usual delegate

has absence type travel

• Copy Function– Allow user to copy from a previously created travel request or

copying from a different person.

8118 September 2013

Accounts Payable - Workflow

Trevor Langtry

AP Workflow – Some Tips

8318 September 2013

Monitoring Workflow - Online

8418 September 2013

Monitoring Workflow - Report

8518 September 2013

Monitoring Workflow - Report

8618 September 2013

Collaborative E-Mail

What is it:• Allows a person to engage in the workflow process (i.e.

approve) via an email without logging into the system• Sounds Good? But!

– Has reduced functionality– Unable to add additional documentation– Unable to insert additional workflow steps– Limited field validations– Does not like the use of special characters in the description or

comments fields - @#$’%^&*! - Sometimes

8718 September 2013

Collaborative E-Mail – Cont..

8818 September 2013

Collaborative E-Mail – Cont..

Three Options on how to use Collab E-Mail

1. Via the body of the e-mail itself– Limited support in terms of which e-mail

client software it will work on• Works OK on the iPad• Old version of Outlook – Office 360 requires new

versions of Oulook

8918 September 2013

Collaborative E-Mail – Cont..2. Right click on view in web browser message

– Caters for special character– You get a number of annoying confirmation

messages– Only works on Outlook?

9018 September 2013

Collaborative E-Mail – Cont..

3. Select attached ApprovalForm.html– Simple to use and limited annoying messages– Works with a large variety of e-mail clients– Does not like special characters

9118 September 2013

Collaborative E-Mail – Cont..

9218 September 2013

Collaborative E-Mail – Cont..

Recommendation:– Limit Collaborative E-mail to those staff that:

• Have a very limited number of transactions; and• Do not regularly use the system for other purposes

– Can still get e-mail notification that allows you to click on link that takes you straight into the workflow transaction once a user id and password is entered – Same as approving online leave

9318 September 2013

Batch Listing/Grouping of Outstanding Transactions

9418 September 2013

Navigation Confusing?

9518 September 2013

Still too hard?

9618 September 2013

9718 September 2013

Need Help

• Call – Ext 54321and follow the prompts• Email – fbs-bso@anu.edu.au• Doco - http://

fbs.anu.edu.au/training/tips-and-techiniques/accounts-payable-workflow

• Request Drop In Session – Call or Email BSO• Fortnightly Open forum – bring your problem and

discuss with all.

9818 September 2013

Questions?

9918 September 2013

General Discussion

All Participants

Next Finance ForumWednesday 13 November 2013

10:00 am to 12:30 pm

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