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Welcome ANU Finance & Business Service
Staffto
2017 ANU Finance Forum
September 2017
Welcome
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Georgina McKenzie, CA, MBA, GAICD Acting Financial ControllerCorporate Finance & Financial ReportingFinance & Business Services
ANU Finance Forum
LEARN
APPLY
CHANGE
CONNECT
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ICE BREAKER
One thing in common
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Systems Update
Jeremy HillTrevor Langtry
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FSS initiatives• Shorter term:
– Compliance reporting• Aged transactions – workflow, advances, debtors, assets• Pcard & Payables transaction review – spend, FBT
– Consolidated invoice integration– Debtor reporting– Banking tender
• Longer term:– AR invoicing– Payables/workflow– Vendors simplification
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FSS initiatives• ServiceNow
– Ticketing system– Emails loaded
• Duplication an issue
– Further simplification – work in progress– Workflow capability– Move to log all jobs in ServiceNow– Reporting
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Payables dashboard reports
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Receivables Dashboard reports
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Concur - update• Issues• Reporting• Reimbursements
– Expenditure policy review– Key configurations tested– Implementation
• Advances– To be scheduled
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Concur - Receipt Upload• Mobile App
• ExpenseIt app • Concur app
• Emailing • [email protected]• [email protected]
• Desktop- direct receipt upload
Concur - ExpenseIt Mobile App
Concur - Uploaded Receipts
Concur - Email Reminders• Cardholders:
– 1st of the month • Purchase card transactions are ready for acquittal
– 10th of the month • Reminder to acquit outstanding purchase card transactions
– 20th of the month • Non-compliance reminder for uncleared transactions > 45 days old
– 25th of the month• Manual advice – card limit will be reset to $1
• Approvers:– Pending approval Expense Claim over 15 days
Morning Tea
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Finance Forum, September 2017
Iain MurrayManager (Advancement Services)Alumni Relations and Philanthropy
Endowment update
There has been a lot happening
Feedback from our stakeholders
• We need better access to endowment financial data and purpose information
• There are too many endowments in the “shop-front”
• Governance of endowments should be more transparent
We’ve heard you
Accessibledocumentation
Endowment Review Project
Improved financial reporting
Policy and Procedure
Meetings with local
areas
Policy and procedure
Term FundNot invested in the LTIP
Expended within specified timeframe; or
Building towards a specific fundraising goal
Endowment for Excellence
Perpetual FundInvested in the LTIP
Minimum establishment threshold
Maximum budget determined by Annual Distributable Amount
Endowment Review ProjectEvery endowment fund is being reviewed to align with the new Policy and Procedure Benefits:
• Greater clarity on purpose and available ADA for existing endowments
• Support for stronger donor relationships through greater transparency
• Improved access to information on the history and supported activities of endowments
Opportunity to maximise impact
• Endowments have had poor visibility in College and School-level financial reporting
• Perpetual and term funds have different reporting needs
• Historically, endowment General Ledger Codes have been used to designate both purpose (eg scholarship or prize) and preservation (eg perpetual or non-perpetual)
• AR&P is in consultation with F&BS on a solution to provide meaningful College and School level financial reporting for endowments
Improved financial reporting
Tips for transparency9212 (Donations & Bequests) income must be placed in E ledgerThe Endowment for Excellence (E ledger) is the designated vehicle for the acceptance and governance of philanthropic funds.
Non-philanthropic monies should not be placed in the E ledgerTransfers of University monies from other ledgers are not considered philanthropic unless an approved, formal agreement to match gifts exists.
Endowment expenditure should not occur using 7000 codes Expenditure should be charged directly to E Funds. This maintains transparency and helps us to explain the positive impacts of giving.
If in doubt – we can help.
Soft Skills……
CommunicationDeliverables(Team Work)
Resilience
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Tools to Building Effectiveness & Resilience
Left BrainLogical -Effectiveness
Right Brian Refresh & Recharge
• Communication (Emails)
• Use a plan • Weekly -Covey
Framework• Long view – Brian
Tracey
• Mindfulness/Gratitude• Breath • Movement
Effectiveness - Communication
Email – Top Tips• Purpose
– Clear subject line– Think about who sending to – Clear action -want by when– Length is important (view box)– Use Reply all sparingly
• Proof read (tip there is Add the email address last)
• Always Answer email – If time restricted just
acknowledge & use follow up function to remind you
• Never reply in haste– draft, safe and comeback later
• Nothing is confidential
• SIGNATURE – Absolutely critical– Name – Position– Phone Number
See handout in your show bag work instruction for setting up auto signature in email
Take the Challenge – Always consider the option of phoning instead
Planning
“Would you tell me, please, which way I ought to go from here” Asked Alice
“That depends a good deal on where you want to get to” said the Cheshire Cat
Lewis Carol – Alice Adventure in Wonderland
PlanningTrivia – often pleasant distractions
The Zone – Value AddedProcess Improvement RecognitionPrevention
Majority of work: • Transactional
Activities
Short term ResultSome Emails/CallsPop in questions
Planning – 2 tools
• How do we move from Distraction & Delusionto THE ZONE?
• 2 TEMPLATE IN YOU SHOW BAG– Weekly -Covey
Framework– Long view – Brian
Tracey
My Weekly PlannerMon
Weekly Events Finance Forum, CAP ExecRole ObjectivesCAP Executive Strategic Planning Day 8.00
CAP Exec Meeting Responses (Grant O/H) 8.30New RBG 9.00College Audit 9.30PDRs 10.00Budget for Functional Managers 10.30Uni-form & Survey 11.00
Manage People Work load - Delegate (ask for help) 11.30PDR - New Skills & Development 12.00Leave Planning 12.30
Budget Income & CAPGen O/H Recovery 1.00Salary & CAPGen Functional budgets 1.30TM1 support 2.00
Grants Process Improvement 2.30Qtly Reviews 3.00Reporting 3.30Grants -Audits, Statement & ARC Process 4.00Endowement Changes 4.30COE ReportingNew FMR - Account StructureYear End
Sharpen the Saw HealthCareer PlanNetworking & Mentor
College Functional Management
F&BS - Governance
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Refresh & Recharge
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Mindfulness/Gratitude
• Simple strategy for mastering the habit of becoming more present to each moment without wishing it were different
What is this and why should I try it?
Breath, Focus/Rewiring & Movement
The Power of the Breathe
Focused Relaxing Breathing exercise will help
– Relax the mind– Increase concentration– Increase energy – Relax muscle tension
You don’t have to do it for hours, in a lotus pose or standing on your head just short focused slow deep breaths
Anchor it to taskWaiting at the traffic lightsStanding at the photocopierWaiting for the kettle to boil
Notice, Shift, and Rewire Your Brain Each moment offers the opportunity to notice our current state, to shift our attention and rewire
• Notice: – become aware of where your attention is directed
• Shift: redirect your attention to the present moment. Gently bring your attention to any object of focus.
• Rewire: take just 15 to 30 seconds to really savour this experience and to reinforce the shift you just made
Anchor this task• First sip of a cup of tea• Waiting in que/stop at traffic lights
Mindfulness in a minute
By Eric Langshur and Nate Klemp PhD | December 12, 2016
Movement & Forest Bath• Mobility is the
immerging health epidemic – Estimates 6.3hrs or
more per day sitting at desk
• Walking enhances your immune system
• A 3pm power pace has been scientifically proven to be more effective than chocolate pick me up
• Increase productivity and creativity by up to 60%
Show Bags
In your Show bag you will find– Though provoking Chatterbox– List of mindfulness/gratitude activities
On the logical side, you will find– Template of the Covey Planning tools– Brian Tracey 14 Day Planning Challenge– Some time saver tips– Instruction on setting up email signature
Let us leave you with this• You tube - How to train your monkey mind.
https://www.youtube.com/watch?v=4PkrhH-bkpk
Session 813 September 2017 Melissa Abberton
FINANCE FORUM
STRATEGIC FINANCE INITIATIVES
Session Overview• Introduction• Strategic Finance Initiatives at ANU
– What are they?– Why a specific role?– How does it work?
• Over to You to Tell me What to Do…………..– Breakout session– Working Groups to brainstorm ideas for things you think need to be
implemented, changed or can be improved to make finance function better
13 September 2017 44
Strategic Finance Initiatives at ANU
13 September 2017 45
Strategic Finance Initiatives at ANU• What are they
– Essentially projects to make finance function more efficiently and effectively at the ANU
• Why a specific role?– “get out of the weeds” and away from BAU to focus on
what needs to change and get it implemented
– Harness partner resources to help “spread the word” 13 September 2017 46
Strategic Finance Initiatives at ANU (cont.)• How does it work?
– Tasked with identifying and implementing initiatives that will have a transformational impact on the finance function at ANU
– Some projects have already been identified for me, both big and small.
– Not going it alone
13 September 2017 47
Strategic Finance Initiatives at ANU (cont.)
13 September 2017 48
Strategic Finance Initiatives at ANU (cont.)
13 September 2017 49
Over to You to Tell me What to Do…..
• Breakout session in table groups • Brainstorm ideas for things you think
need to be implemented, changed or can be improved to make finance function better
• Collate your ideas and come back to the next forum with a plan for a project
13 September 2017 50
Improvement Brainstorm
13 September 2017 51
Essentially consider 5 steps:1. Name it - Identify the Improvement 2. The Now State - Outline the current state of the
problem or situation and why isn’t it working 3. Definition of Awesome – How do we want it to be4. Next Target Condition – in x number of weeks
what do you think should have changed5. First Steps – 3 ideas that describe first/next
actions
Improvement Brainstorm
13 September 2017 52
Next Steps
13 September 2017 53
QUESTIONS?
13 September 2017 54
MANDATORY REPORTING - AFS
Finance Forum 13 September 2017
Georgina McKenzie, CA, MBA, GAICD Acting Financial ControllerCorporate Finance & Financial ReportingFinance & Business Services
Corporate Finance & Financial Reporting
Thin Thin AungFinance Manager
Heidi LuuSnr Financial Accountant
Samata Dharmadhikari
Asset Accountant
Catherine DickensFinancial
Accountant
Teresa CadmanSnr Finance
Manger Research
Lorraine PiperSnr Financial Accountant
Karen YangFinancial
Accountant
Farzana NasinFinancial
Accountant
Khanh HoangAssistant Financial
Accountant
VacantInvestment
Operations Assoc
Insurance
• Arthur J Gallagher (AJG)
Tax
• KPMG
Financial, Statutory Reporting
Research Accounting &
Reporting
Investment Middle Office
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Mandatory Reporting
Financial, Statutory Reporting Annual FS Annual FBT Return Annual National Rental
Affordability Scheme Monthly BAS Dept of Education
Financial Reporting Financial Contractual
Obligations e.g. PBSA
Research Accounting & Reporting ARC NHMRC HERDC Return US Federal Awards Audit
(Commonly referred to as A133 R&D Audit)
Other Contract & Grant Statements/Acquittals
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NEW ACCOUNTING STANDARDS
AASB 9 Financial Instruments AASB 15 Revenue from
Contracts with Customers AASB 16 Leases AASB 1058 Income of Not-
for-Profit Entities AASB 1059 Service
Concession Arrangements: Grantors
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AASB 15 Revenue from Contracts with Customers• Mandatory from 1 January 2018• 1 year extension for NFPs from 1 January 2019• Recognition of revenue in a manner that depicts the
transfer of goods and services to customers at an amount that reflects the consideration the entity expects to be entitled to, in exchange for those goods or services.
• Basis for the Standard is a 5 Step model. 1. Identify the contract2. Identify the Performance obligations3. Determine the transaction price4. Allocate the transaction price5. Recognise Revenue
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AASB 1058 Income of Not-for-Profit Entities• Mandatory from 1 January 2019• Reflect the economic reality of NFP entity transactions
that are not contracts with customers (as defined in AASB 15).
• NFPs will be able to recognise such grants or donations as income when the performance obligation has been fulfilled, and not when the revenue is received.
• The timing of income recognition depends on whether such a transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by an entity.
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• Currently AASB 1004 Contributions requires Grant / Contract Income to be recognised on a cash basis. Revenue is recognised as income when it is received and expenses when they are incurred.
• This commonly forces income recognition on day one despite the fact the entity is yet to fulfil its performance obligations.
• The new requirements represent a major change for the University and work is currently underway to navigate through the changes required and how to implement going forward.
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• ANU along with 11 other Universities have engaged Nexia Australia to assist in the application and common adoption of three new accounting standards (AASB15,16 and 1058)
• In addition to the review of contracts conducted by Nexia the ANU will also have to review contracts and agreements specific to the ANU against AASB 15 and 1058 to decide which standard applies. This work is currently being scoped.
• Changes will be required to systems and processes
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AASB 9 Financial Instruments
• Mandatory from 1 January 2018
• Aims to simplify financial instruments accounting
• Addresses issues from the GFC
• Significant changes in 3 areas:– Classification &
measurement– Impairment– Hedge Accounting
• ANU holds a significant Investment Portfolio
• EY will be engaged to assist the ANU to transition to the new standard
• A significant review of our holdings will be required
• Broader scope of assets to be considered for impairment
• If possible, early adoption in 2017 will be considered (if allowed by the Dept of Finance)
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AASB 16 Leases• Mandatory from 1 January 2019• Provides a clearer, more
comparable picture of true financial exposure
• For Lessors - accounting remains largely unchanged
• For Lessees -– Leases no longer classified as either
operating leases or finance leases– Right-of-use assets and lease liabilities will
be recognised on the balance sheet– In the cash flow statement, the total amount
of cash paid will be separated into principal and interest
• Must be applied retrospectively to leases already in effect on the transition date,
• Data collection for Nexia review highlighted that the ANU does not maintain a central location for lease documentation
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2017 Annual Financial Statements
Key Draft Dates• Oct 17 – P10 Soft Close• Dec 17 – Interim Audit Commences• Jan 18 – Lead Sheets and Reconciliations • Feb 18 – AFS Audit commences• Mar 18 – Committee Reporting and • Apr 18 - Council Sign Off • Apr 18 – Annual Report Print
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FBT Update
KPMG - Bridie Griffin & Patrick Langdon
Overview – 2017 FBT Return Benefit Taxable ValueCars – statutory formula $280,420Cars – operating cost method
$2,808
Loans $441Expense Payments $4,480Housing $37,553LAFHA $0Property $0Income tax exempt body entertainment
$580,727
Residual $0Total $906,429
Upcoming Changes• Review of processes for collecting and
confirming FBT return data
• Preparation of 2017 FBT return amendment
• Importance of coding transactions in Concur (e.g. meals whilst travelling/light meals/elaborate meals)
• Review of information available on the ANU website
HERDC, ARC & NHMRC- UPCOMING CHANGES
Teresa Cadman, CASenior Finance ManagerResearch Accounting & ReportingFinance & Business Services
HERDC: 2018 Specifications August 2017 - Department of Education and Training has released final 2018
HERDC Specifications (guidelines for reporting 2017 Data)
Next step – establish task group to undertake work to implement these changes Existing grants:
560+ contracts to be reviewed Move GLCs to new Fund Attributes (update in both ARIES and ES Financials)
New Grants – use new fund attributes
Category Main Impacts Category 2 New Subcategories:
Own Purpose and OtherCategory 3 New Subcategories:
Private Sector and Government For Profit and Not-For-Profit Own Purpose and Other
Category 4 Now reporting on a calendar year basis One-off transition arrangement applies – income from 1.7.16-
31.12.16 to be included in the 2017 calendar year return
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HERDC: Category 1 – Australian Competitive Grant Income
2016 & 2017 DataIncome from those schemes that are listed on the Australian Competitive Grants Register (ACGR)
2018 Data Moving to a self-assessment
model for the ACGR as it allows universities to assess and code income once (at the time the grant is awarded).
Five year transition to a self-assessment process
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HERDC: Category 2 – Other Public sector R&D income
2016 Data 2017 DataCommonwealth Government (Non Category 1) Income from General or
Untied Funding All Other
2.1 Commonwealth Government (Non Category 1) 2.1.1 Commonwealth (own purpose) 2.1.2 Commonwealth (other)
State Government (competitive and non-competitive)
2.2 State / Territory / Local 2.2.1 State / Territory / Local (own
purpose) 2.2.2 State / Territory / Local (Other)Local Government (competitive
and non-competitive)
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HERDC: Category 3 – Industry and other R&D income
2016 Data 2017 Data
Australian: Contracts Grants Donations, bequests and
foundations HDR fees for domestic
students
3.1 Australian 3.1.1 Private Sector
3.1.1.1 For Profit Organisations 3.1.1.2 Not-for-Profit Organisations
3.1.2 Philanthropy
International: International A: Competitive,
Peer-reviewed research grant income
International B: Other Income
International C: HDR fees for international students
3.2 International 3.2.1 Private Sector
3.2.1.1 For Profit Organisations 3.2.1.2 Not-for-Profit Organisations
3.2.2 Philanthropy 3.2.3 International government
3.2.3.1 Government (own purpose) 3.2.3.2 Government (other)
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HERDC: Category 4 – CRC R&D income
2016 Data 2017 DataResearch income derived from Australian Government grants to CRCs
4.1 R&D income derived from Australian government grants to CRCs
Research income derived from non-HEP members of CRCs
4.2 R&D income derived from private industry participants of CRCs
Research income derived from external parties contributing to CRCs
4.3 R&D income derived from other sources
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ARC: New Funding Rules
Funding commencing in 2018 Australian Laureate Fellowships
Future Fellowships Linkage Projects (funding applied for in
2018)
Funding commencing in 2019 Discovery Projects Discovery Early Career Researcher
Award Discovery Indigenous Linkage Infrastructure, Equipment and
Facilities
August 2017 - ARC has released new funding rules (“2017 Edition”) for each funding scheme it administers
http://www.arc.gov.au/funding-rules Funding rules issued separately for Discovery Programs and
Linkage Programs 2017 Edition applies to:
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ARC: New Funding Rules (cont’d)
Example: Discovery ProjectYou can apply for a DP19 while holding two DP16s with Project end dates prior to 1 July 2019. However, you cannot start the DP19 until at least one of the DP16s has been completed, one DP16 has been relinquished or your role on one DP16 has been relinquished in order to meet the limit of two Discovery Program Projects.
Example: Linkage ProjectsYou can apply for a LP18 from 1 July 2018 while holding four LP16s with Project end dates prior to 1 July 2019. However, you cannot start the LP18 until at least one of the LP16s has been completed, one has been relinquished or your role on one LP16 has been relinquished in order to meet the limit of four Linkage Program Projects (excluding LIEF).
New Term : Active Project Assessment Date The date on which Active Project eligibility will be considered “A Project cannot commence until all CIs, PIs, Awardees and Fellows meet the
eligibility criteria in these Funding Rules.” i.e. even if you can apply for more than allowed in the Project limits, you cannot start
any Project until you meet the limits, and all eligibility criteria in the Funding Rules.
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ARC: Prior Round Funding Rules
Funding commencing in 2017 Australian Laureate Fellowships
Future Fellowships Linkage Projects
Funding commencing in 2018 Discovery Projects Discovery Early Career Researcher
Award Discovery Indigenous Linkage Infrastructure, Equipment and
Facilities
September 2016 - ARC released funding rules (“2016 Edition”)
Addition of provision for reasonable essential extraordinary costs to allow a researcher who is a carer, or who themselves require care or assistance, to undertake travel essential to the Project (A5.2.1)• This could have FBT implications• A5.1.7 The Administering Organisation is responsible for any and all
financial and taxation implications associated with receiving funds.
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ARC: 2016 End of Year Statements
619 statements lodged with ARC (ANU Led)– 630 individual
statements prepared – 10 Consolidated
Statements 361 currently accepted
by ARC Externally Led –107
statements sent to Partner Universities
ARC Centres of Excellence 2
ARC Future Fellowships 92
Australian Laureate Fellowships 19DECRA 95
Discovery Indigenous 6
Discovery Projects 330LIEF 9Linkage Projects 66Total ARC Statements (ANU Led) 619
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NHMRC: 2016 End of Year Statements
80 statements lodged
with NHMRC (ANU Led)
78 currently accepted by
NHMRC
Externally Led – 30
statements sent to
Partner Universities
Career Development Fellowship 4
Centres of Research Excellence 2
Development Grants 1
Early Career Fellowships 13
European Union 1NHMRC-ARC Dementia Research Development Fellowship 1Partnership Projects 3
Postgraduate Scholarships 2Project 43Research Fellowship 9TRIP Fellowships 1Total NHMRC Statements (ANU Led) 80
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ARC / NHMRC: New Process in 2016Prior Years
Research Accounting (RA) responsible for initially preparing all Statements
2016 Colleges responsible for initially preparing ARC (ANU
Led) Discovery Projects (DP) - 330 RA responsible for initially preparing all other
Statements - 517 Other ARC (ANU Led) -300; ARC (Externally Led) -107 NHMRC (ANU Led) - 80; NHMRC (Externally Led) -30
Logic: improve timeliness of getting DP statements to CI’s2016 Feedback: Challenges - New process / responsibilities for Colleges; new RA team Conflicting priorities / deliverables - Colleges to ensure DP applications are
completed early on to allow sufficient time to complete Statements Overall - Colleges have communicated they are happy with change2017 Recommendation: continue with same split of responsibilities
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ARC / NHMRC: How can we improve 2017?General Process Improvements: Improve overall efficiency of
process Early planning before year end Removal of manual processes
where possible Eliminate duplication of work Standardisation of calculations /
work papers Consistency with treatment of
ineligible expenses Complete closed statements
midyear where possible
Other Examples include:• CI meetings – Colleges aim to only have one
meeting with CI to review and certify all statements (RA to complete statements by CI)
• Shared Funding - RA to correspond with Partner Universities for year end Income and Expenditure Statements
• Early Review - Colleges to review expenditure reports from ES Financials to facilitate a high level review of ineligible expenditure prior to 31.12.17.
• Forward planning - for projects due to end 31.12.17 – Colleges to review unspent balances prior to 31.12.17.
Training to be held in November 2017Topic – Preparation of 2017 ARC and NHMRC End of Year Statements
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Thank you &
Don’t forget your show bag
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