2010 Finance Forum

22 September 2010

Innovation Lecture Theatre

Welcome

David Sturgiss

AgendaWelcome David Sturgiss 10 minutes

Update of activities of Financial Operations and BSO

Brigid Lever 5 minutes

Annual Financial Statements Linda Puah 10 minutes

Transparent Cost of Research Update Peter Shipp 10 minutes

Chart of Accounts Review Update Peter Shipp 10 minutes

Policy Update Amanda Walker 10 minutes

Finance Related Training Update Amanda Walker 10 minutes

Tax Update Callum Burke 10 minutes

2011 Budget Update Mark Baker 10 minutes

Q3 Budget Update Mark Baker 10 minutes

Update of activies of Financial Operations &Business Solutions Office

Brigid Lever

PCI-DSS compliance

• Identify plans to achieve compliance• Can still obtain hardcopy card data EXCEPT CVV/CVC• Consider all processing options – receipting manual• Do not STORE hardcopy• DOI network scanning• nabTransact options• Treat card data like cash/cheques or card itself

OCR

Issues:• Internal process flow• Hardware reliability• Consistency and quality of actual OCR

FMIS planning

• Current V8.8 unsupported by end of 2011• 9.1 is latest – 8 years life• 6 of Go8 now on PeopleSoft Financials• Future Oracle directions – Fusion• HCM and Campus Solutions “dis-integrating”• Longer term enterprise applications strategy required• Upgrade scope and plan by end of 2010, for 2011 project• No significant new features identified• Will consider opportunities for process efficiencies

Receipting Project

• Mapped all College and DOI receipting processes• Identified main issues and recommendations

Next steps:• Map remaining divisional receipting• Final report – findings and recommendations• Main recommendations:

• Document all receipting options• Develop web receipting and shopping cart tool• Evaluate/implement new nab options

Other Operational

• Debt management• Vendors• Travelex 24/7• Policy updates• Bank reconciliation

Annual Financial Statements31 December 2010

Linda Puah

Forum Content• Legislative Overview• Financial Reporting Requirements• What is required of each Business Unit• Property, Plant & Equipment, Impairment• Cashflow, Income, Expenditure, Overstated Debts• Commitments, Contingencies, Management Rep• Year End Journals and Timetable• Other Matters

Legislative Overview

• Dept Of Finance and Deregulation Guidelines- Finance Minister’s Orders

• DEEWR Guidelines• Australian Accounting Standards • Audit Requirements

Financial Reporting Requirements

• Income Statement• Balance Sheet• Statement of Comprehensive Income• Statement of Cash Flows• Schedule of Commitments• Schedule of Asset Additions• Notes to the Financial Statements• Working papers, including AFS Pack Schedules support

the audited Financial Statements

Budget Unit Assistance Required• AFS Packs – Summary Notes, Detailed Instructions and

AFS Schedules. All AFS Pack schedules are to be returned intact by Friday, 7 January 2011 & with supporting documentation if applicable. Please retain copies.

• If NIL or N/A – please complete and mark NIL or N/A and sign.

• Please ensure that the bulk of transactions relating to 2010 are processed within the first week in January i.e. by 7th January 2011.

Budget Unit Assistance Required (Cont’d)

• Senior finance officers at each Budget Unit may be required to assist with queries in relation to the AFS pack during January – February 2011.

• If processing staff are on leave, please arrange for replacement staff to comply with the system deadlines.

Property, Plant & Equipment• Asset and store stocktakes schedules to be returned by

Friday 3 Dec 2010. • Processing of asset additions/transfers/disposals must be

actioned by 11 December 2010 to allow SMR time to check that transactions have been actioned correctly.

• Please check location details/descriptions and update as appropriate in ESP.

• Asset Reconciliations must be actioned as soon as possible. Aim for clean reconciliations by end of Period 13.

• Accounts 9370, 9370V & 9370M – must be cleared to zero

Asset Impairment

• Schedule 1.4- review of asset impairment between principle delegate and finance manager to ascertain whether assets’ are impaired

• Schedule 1.5- if applicable, please list items (NBV > $50,000) that are impaired

Cashflow, Income, Expenditure, Overstated Debts• Cashflow- Unreconciled amounts must be fully

investigated and write-off requests brought to the attention of F&BS ASAP

• Prepaid Expenditure/Income in Advance- Ledger descriptions from now to end of December must start with 2011 (if related to 2011)

• Accrued Expenditure/Accrued Income- Ledger descriptions from 4 January 2011 must start with 2010 (if related to 2010)

Cashflow, Income, Expenditure, Overstated Debts (Cont’d)• After 7 January 2011 and before 1 Feb 2011, advise SRLI

by email of unrecorded 2010 income or expenditure that arises >$50,000.

• Please review all outstanding debts as at year end to determine if any write-off is necessary

Commitments, Contingencies, Management Rep• Commitments/Contingencies – Schedule 9.1-9.6 and

Schedule 10 – must be supported by documentation. • Management Rep- Schedule 12 must be signed.

Responsibility of the Delegate of each area to ensure that the information provided in the schedules are accurate.

Year End Journals

• Year End Journals – Please note that Year End journals processed from 4 to 7 January 2011 need to follow certain rules.

• Please refer to the rules on the web. If assistance is required, please contact SMR for assistance before processing a year end journal.

Year End Timetable

• The year end timetable is detailed on Page 5 of the AFS packs.

• Please check the final version of this timetable from the WEB (AFS Section in F&BS).

Note: The timetable has been brought forward by 1 week for the 2010 AFS.

Year End Timetable (Cont’d)

By 7 January 2011 (Friday), the following must be completed:• AFS Packs must be signed and returned to Linda Puah• Year end journals for all accruals • Year end processing for all 2010 related AR Invoices and

AP vouchers

PLEASE ENSURE THIS TIMETABLE IS KEPT IN MIND AND ACTIVITIES ARE SCHEDULED IN CONSULTATION WITH THE TIMETABLE.

Other Matters

Encumbrances to be reviewed, unnecessary items deleted.

Clear purchase card transactions by year-end.

If you have any AFS related questions and/or other related concerns please contact:

• Linda Puah (Linda.Puah@anu.edu.au, ext 58724)• Melissa Orr (Melissa.Orr@anu.edu.au, ext 58763)

AFS Website:

http://info.anu.edu.au/fbs/Finance_Functions/Annual__Financial_Statements

Other Items (Cont’d)

Assets – New Staff, Asset Training, Asset Accounting Training

http://info.anu.edu.au/fbs/Finance_Functions/__Assets/Index.asp

Contact Melissa Orr (Melissa.Orr@anu.edu.au, ext 58763)

Transparent Cost of Research Update

Peter Shipp

Current Position

•Second staff survey completed

•906 responses of 1,334 (FTE 1,256.23) surveyed

•DIISR calculated

• Ave research effort per academic FTE 43%

• ACG effort as % of average research effort 45%

Current Position

•DIISR calculated

•Preferred Method outcome

• $145,891,229 * 0.45 = $65,651,053

OR $0.8579/$1.00 Cat 1 HERDC Income

•Alternate Method outcome

• $246,661,562 * 0.43 * 0.45 = $48,348,337

OR $0.6318/$1.00 Cat 1 HERDC Income

Current Position

•We are not comfortable with these results and will be

meeting with DIISR tomorrow to discuss and clarify further.

•Once finalised proposed direction is to:

• Establish TC at College/School level

• Advise the Vice-Chancellor of appropriate Indirect Cost

(Overhead) rate be applied for all research and

consultancy activities

Chart of Accounts Review Update

Departments and natural accounts

Peter Shipp

Chart of Accounts Review Update

Split into two components:

- Department review; and

- Natural accounts review

Department Review

Aim

- Remove (College) departments no longer in use

- Encourage accurate costing especially staff costs

Basis

- Non existent recurrent ledger

- Nil staff allocation

Department Review (Cont’d)

Status

- Awaiting final confirmation from Colleges

- Inactive departments will be removed by the end of

September 2010

Natural Accounts Review

Aim

- Agree upon a new set of natural accounts

- Simple and logical

- Non duplication of functions

Natural Accounts Review (Cont’d)

Direction (a glimpse)

- Create University wide agreed set of natural accounts

- Review adaptability of systems potentially affected by the

change

- System limitations are noted and resolutions proposed

- Adjustments to both the new natural accounts and systems

are made

- New set of natural accounts before December 2010.

Natural Accounts Review (Cont’d)

Current Status

- F&BS agreed set of accounts drafted with a 49% reduction

on Revenue, Expenditure, Asset, Liability and Equity

accounts.

- Draft accounts have been distributed to Colleges for review

- System reconciliations are being explored by F&BS’ BSO

with consultations with Central Divisions to take place soon.

- Progress is looking positive

Epilogue

Thank you in advance for your effort and contributions.

Questions?

Policy and Training Update

Amanda Walker

Policy Update

• F&BS is in the process of updating all of the policies and procedures published on the official ANU policy site.

• All ANU employees are bound by the Code of Conduct, • The Code of Conduct requires “ANU staff to act in

accordance with all ANU policies and procedures”• Please feedback any issues you would like to see

specifically covered in a policy or procedure to Amanda Walker by the middle of October

Training

• Standard suite of training published on F&BS website.• Please email Finance_training@anu.edu.au to register

your interest in either completing one of the generic course • F&BS staff are also keen to work with local finance area

staff to develop and co-present customised training courses. Please email Finance_training@anu.edu.au or contact Amanda Walker to discuss further.

Tax Update

GST on sale of ‘Bricks’ and ‘Sole Traders’ Procedure Callum Burke

Sale of ‘Bricks’ at Co-Op bookshop

• Generally the sale of course reading materials such as ‘Bricks’ through the Co-Op bookshop are considered GST-free.

• Materials sold by a third party may still be GST-free to students where the third party acts as our agent and;

• we (ANU) retain ownership of the materials being sold,• the agent (Co-op) identify the student by provision of a

current student card,• the course materials are listed on a booklist as being

required to undertake the course.

Reference < Paragraph 94, Goods and Services Tax Ruling (GSTR) 2001/1 ‘Goods and services tax: supplies that are GST-free for tertiary educations courses’ >

Engaging ‘Sole Traders’ procedure

Just a reminder of the ‘Sole Traders’ procedure which was revised earlier in the year.

• ANU’s preference should be to minimize our dealings with individual contractors or ‘Sole Traders’.

• WHY? Potential risk that ‘Contractors’ may still be viewed as ‘Employees’ under relevant legislation for:

- Taxation - Superannuation- Workers compensation

Engaging ‘Sole Traders’ procedure

• When engaging individuals you should refer to the Sole Traders procedure.

< http://policies.anu.edu.au/procedures/sole_traders/procedure >

• When considering an arrangement with an individual you must complete the Employee/Contractor Checklist

< http://info.anu.edu.au/fbs/assets/Finance_Functions/Business_Tax/anu_only/checklists/checklist.xls >

• The checklist considers the circumstances to decipher if the arrangement is more in the nature of an employee or contractor relationship.

• Delegate needs to sign off on the form.• Where it is viewed that the arrangement is more in the nature of an

employee the individual should be engaged through HR practices.

2011 Budget Update

Mark Baker

2011 budget update All information will be published and distributed via the 2011 budget

website (http://info.anu.edu.au/fbs/Finance_Functions/2011-Budget-2)

F&BS has published: The CFO memo requesting initial high level 2011 budget estimates

by 12 November 2010 User documentation for the 2011 budget tool Summary of key dates for 2011

Further information will be published in the coming weeks, including the 2011 budget guides that will include estimates for increases in utility charges, fee overhead and capital deduction rates and CPI recommendations.

Recurrent budget advice sheets and supporting calculations for HECS, CGS and research returns will again be distributed via the web site.

2011 budget update

2011 budget update

2011 budget update Budget meetings between the Office of the Vice-Chancellor and

local area Delegates are scheduled for 19 and 20 October 2010 for Colleges, and 22 October 2010 for DOI and Administration Divisions.

Recurrent budget advice sheets will be issued as soon as possible after the Council meeting on 3 December 2010.

Initial recurrent budgets are to be loaded into ESP Financials by F&BS on or before Friday 21 January 2011.

F&BS contacts are Tim Bateman and Amanda Walker.

Questions?

Q3 2010 budget reviews Meetings will be held on Monday 25 October, Tuesday 26 October and

Wednesday 27 October 2010. Initial timetable has been distributed and is now being finalised.

31 December 2010 financial projections and narrative report will need to be prepared and submitted via email to F&BS by cob Monday 18 October 2010 (fmr@anu.edu.au). Hard copies signed by the appropriate delegate can be provided at the meeting or sent via internal mail.

An nVision based template will be circulated for R funds with pre-populated Period 9 data to assist with projecting full year values. S & Q templates will seek high level projection information only.

Trading areas will be requested to provide high level projection information in P&L format.

Expect all documentation will be circulated in the next week.

Questions?