Finance Forum

1 June 2011

Welcome & Overview

1 June 2011

•David Sturgiss

3

Overview

• Financial Services Staffing (Peter Shipp)

• DIISR - Reviews of Transparent Cost of Research and RTS Cost Review (Peter Shipp)

• HERDC update and a review of the process to date (Amanda Walker & Lee Mavanna)

• FBT treatment of Motor Vehicles (Luke Beckett)

• Procurement and Probity Policy and Procedures (Tim MacPherson)

• Afternoon Break • FinOps and BSO Staffing (Wendy Fox)

• iMIS/TM1 Development (Jonathon Flack)

• Project Management for FMIS Refresh (Peter Rietdyk)

Departures, Arrivals and Internal Moves

• Peter Shipp

Departures

• Mark Baker to OVC• Callum Burke to Education

Department of Victoria• Melissa Orr to CAP• Kirsten McKinnon to CAP• Vanessa Quigley to CECS

Arrivals

• Luke Beckett to Tax Accountant from Kinsella Accounting

• Ashish Doshi to Investments from HR• Still looking for:• Senior Accountant Budget &

Reporting• SPF 6/7

Transfers

• Bei Qian Zhang from SPF to Capital Accounting

• Zachary Ong from SPF to Projects

DIISR - Reviews of Transparent Cost of Research and RTS Cost Review

• Peter Shipp

DIISR Transparent Costing 2011

• Academic staff survey in progress

• Surveying some General Staff where direct research involved

• One-form submission for finance data

DIISR Transparent Costing 2011

• Greater clarity in definitions and eligibility of expenses

• Return to be lodged by 30 June

• Big issue – how do TC and ERA results impact funding?

DIISR Full Cost of RTS Study

• Preliminary study of RTS costs

• Adopted the TC approach

• Results from this will be reviewed by Deloitte Access Economics

• Initial outcome ~ $35,790 per domestic RTS

Expenditure from S & Q Funds

• Peter Shipp

HERDC update and a review of the process to date

Amanda Walker & Lee Mavanna

What is HERDC?

• Process run by Department of Innovation, Industry, Science and Research

• Collects data on research income and research publications

• Data is used to allocate research block grant funding on a performance basis

How does HERDC impact Colleges at ANU?

• The ANU’s overall HERDC performance influences the total funding received by the University.

• The University has internal processes for allocating income received to Colleges. HERDC performance of individual colleges is taken into account in the allocation methodology used by the VC

When is income HERDC Eligible?

• HERDC Specifications are published each year that set out when income is eligible

• Eligibility is based on a number of things including:– The definition of research– The provider of funds– The scheme under which funds are provided.

HERDC Process

• Income of ANU is reviewed to determine HERDC eligibility by looking at:

– Fund attribute of income – Account code of income– Transaction description of income

HERDC 2010 highlights

1) Use of Account numbers

2) Journal line descriptions

3) ARIES mis-match

4) Use of Q-funds

HERDC highlights

1) Account Numbers

9309 Sundry Income

Do not use for Linkage Partner income

9712 Contracts – Non-research (Domestic)

9715 Contracts – Non-research (International)

Do not use for Eligible research grant income

HERDC highlights

1) Account Numbers cont’d

9992 / 9993 / 9995 / 9996 Contract Research

income accounts

Do not use for Ineligible grant income

• Refer to the Contracts Tab in ARIES• Refer to the ANU Chart of Accounts

HERDC highlights

• 2) Journal line descriptions

e.g. Anniversary of execution

Research grant then CI name

Inputs (against $25,600)

HERDC highlights

• 3) ARIES mis-matchARIES Main Details tab does match

Scheme selected

Main Details 1) Grant 2) Research

Scheme Non-research income

HERDC highlights

• 4) Q Funds

• If the original contract has ended DO NOT keep using the fund for other income and expenditure

• E.g. Q-Fund contract end date 31 December 2008

Original funds provider – OverseasThree invoices raised in 2010 =>ANUE Description “reimburse salary and oncosts

Aug-Oct 2010”

Questions?

Federal Government’s Budget 2011 -FBT treatment of Motor Vehicles

• Luke Beckett

Budget 2011 – FBT on Cars

• Announcements in the Budget 2011 only affect cars where:– The FBT is calculated using statutory method– Arrangements entered into after 10 May 2011

• Existing arrangements will not be impacted

• The changes are in line with recommendations in the Henry Review

Budget 2011 – FBT on Cars (cont.)

• The changes will be phased in

• For arrangements entered into between 10 May 2011 and 31 March 2012– 0-15,000km 20%– 15,000-24,999km 20%– 25,000-39,999km 14%– 40,000km+ 10%

Budget 2011 – FBT on Cars (cont.)

• For arrangements entered into between 1 April 2012 and 31 March 2013– 0-15,000km 20%– 15,000-24,999km 20%– 25,000-39,999km 17%– 40,000km+ 13%

Budget 2011 – FBT on Cars (cont.)

• For arrangements entered into between 1 April 2013 and 31 March 2014– 0-15,000km 20%– 15,000-24,999km 20%– 25,000-39,999km 20%– 40,000km+ 17%

• From 1 April 2014 all new arrangements will be 20%

Budget 2011 – FBT on Cars (cont.)

• The new rate will benefit those that drive less than 15,000km and disadvantage those that drive more than 25,000km

• The change in these rates will also impact Reportable Fringe Benefit amounts

Budget 2011 – HELP Repayments

• Discounts on upfront HECS student contributions will be reduced from 20% to 10%

• Discounts on repayments of HELP debts of $500 or more will be reduced from 10% to 5%

Questions?

Introduction of New Procurement and Probity Policies and Procedures

• Tim MacPherson

Items for Discussion

• Approval

• Old vs. New Differences

• Key Changes

• Procurement Handbook

• Location on ANU Intranet

• New Purchase Order Terms & Conditions

• Questions?

Approval

• College and Service Division consultation undertaken in February and March 2011.

• With feedback reviewed, considered and incorporated into policies, procedures and Procurement Handbook.

• Vice-Chancellor approved publication on the 3 May 2011, with documentation going live from 6 May 2011.

Old vs. New Differences

• New Policies and Procedures differ significantly from previous policies.

• New policies are high level ‘principles’ underpinning the way procurement is undertaken in the University.

• New procedures are the supporting ‘how-to’ elements for policies.

Key Changes

• Under the new Procurement Procedure the threshold for major procurement (tender) increased from $150,000 to $250,000.

• The new Probity Procedure formally assigns procurement probity to the Delegate to ensure the tender process is fair, transparent and ethical.

• Removal of the Probity Checklist from the ANU intranet, and replaced with Probity Plan.

Procurement Handbook

• Developed to provide practical guidance to assist University Staff with compliance of the University’s Procurement and Probity Policies and Procedures

• Useful prompts/reminders to key activities, staff responsibilities and required delegation approvals

• Details of when to consider using templates from new suite of documents created to support tender activities.

Location on ANU Intranet

• Policy– Procurement

http://policies.anu.edu.au/policies/university_procurement_policy/policy

– Probity http://policies.anu.edu.au/policies/probity_plan/policy

• Procedure– Procurement http://policies.anu.edu.au/policies/procurement_procedure/policy

– Probity http://policies.anu.edu.au/policies/procurement_probity_procedure/policy

• Procurement Handbook– http://policies.anu.edu.au/guidelines/anu_procurement_handbook/guideline

New Purchase Order Terms & Conditions

• In late April 2011 the University introduced the notice and advice to suppliers of new Terms and Conditions (T&C’s) on ANU Purchase Orders (PO)

• Why? The University by paying for the goods and/or services was accepting the T&C’s on the suppliers invoice

• The notice on ANU PO’s will now provide legal coverage for the University in case of invoice dispute if supplier accepts ANU PO T&C’s

New Purchase Order Terms & Conditions (cont.)

Location of “Important Notice on ANU Purchase Order, including internet location of ‘ANU Terms and Conditions for Purchase Order of Goods and/or Services’.

Questions?

Finance Forum

Afternoon Break

FinOps and BSO Staffing - arrivals, exits and internal moves

• Wendy Fox

iMIS/TM1 Development - FMIS Refresh Program

• Jonathon Flack

iMIS Planning• Identified as priority within the ‘FMIS Upgrade & Development Strategy’.

• Complementary concept.

• Implemented alongside existing ‘Integrated Management Information

System’ (iMIS) University’s management reporting and analytics application.

• Greater capabilities to use actual performance data combined with other

drivers of performance and cost to develop plans, models and budgets.

• Supported by the budgeting and planning application ‘Cognos TM1’.

• Proof-of-concept delivered late 2010 demonstrated capacity of Cognos

TM1.

• ‘iMIS Planning Part I’ is the first segment of integration “roadmap”.

What is Cognos TM1

• ‘in memory’ OLAP database

• Excel interface

• Read and write abilities

• Real time calculations

• Web delivery

OLAP versus RDBMS

• Transactional systems– SAP, QSP, Finance One, PeopleSoft, Oracle

• Relational Database Management System (RDBMS)

• Two-dimensional, related tables

Cost Centre

•CC Code

•CC Name

•CC Parent

Account

•Acct Code

•Acct Name

•Acct Categ

CC Code Acct CodeFund Code $1,000

TransactionsFund

•Fund Code

•Fund Name

OLAP versus RDBMS• Multi-dimensional systems

• OLAP – On-Line Analytical Processing

• Efficient at handling multi-dimensional data and performing aggregations and rollups

• OLAP is complementary to RDBMS

• OLAP tools do not handle on-line transactional processing that well

• Based on ‘Cube’ and ‘Data Point’ concepts

Department

AccountYear

Month

Scenario

Project

Data Point$1,000

End User

TM 1 Cube

PeopleSoftHR

PeopleSoftFinancials

Excel Addin

Web Browser

iMIS Planning Stage 1 - Who

• 7 Colleges

• Division of Information

• Office of the Vice-Chancellor

• Admin Divisions

iMIS Planning Stage 1 - What

• Budgeting and Forecasting

– Bottom-up expense budget model based on the existing ANU budget template.

– Support for recurrent, special and discretionary (R, S and Q) expenditure.

– Phased budgets and forecasts (by period for CY & NY by year for FY1 & FY2).

– Ability to enter budget comments.

– Operating budgeting template and Salary budgeting template (by person).

– Support multiple budget versions and forecasts.

– Store data for multiple years.

– Automatically calculate variances (eg. Budget – Actual).

– Archive and copy budget versions.

– Export budget versions to a flat file for load into PeopleSoft or other systems.

iMIS Planning Stage 1 - What

• Chart of Accounts– TM1 dimensions, cubes and rules that reflect ANU reporting

structures.

– Upload processes for chart of account objects extracted from

PeopleSoft Financials

• PeopleSoft Data Uploads– Actual and commitment data extracted from PeopleSoft

Financials

– Staff list data extracted from PeopleSoft HR

iMIS Planning Stage 1 - What

• Management Reporting

– Limited set of internal management and budgeting reports

• Other Deliverables

– Capability to limit access by user.

– An audit trail to track changes by user.

– System and user documentation.

iMIS Planning Stage 1 - When

• End User Training

– Early June 2011

• Delivery of ‘beta’ version mid-June

– Useability testing

– Load testing

iMIS Planning Stage 1 – What is not in this stage

• Top-down allocation model.

• Revenue modelling e.g. drivers based on student load.

• Detailed Executive KPI /dashboard style reporting.

• Reporting which relies on data from systems other than PeopleSoft.

• Reports at transaction level.

• Loading of historical budget and actuals prior to 1 January 2010.

• Implementation of workflow.

• Wider scale rollout, support and training.

Questions?

Project Management for FMIS Refresh Program

• Peter Rietdyk

FMIS Refresh Program Phase 1 (April 2011- June 2012)

• Application & Infrastructure Upgrade• iMIS Planning 1 – roadmap, budgeting• P2P process review and design• Reporting structures – requirements,

design• Receipting – on-line sales & reporting,

OneStop dotnet upgrade• OCR rollout

Program Management Plan Overview

• Mechanism for managing programs in a structured manner for the success of a number of concurrent projects.

• Detailed roadmap.

• Management function to successfully deliver the program on time, on budget and to the required quality.

Areas of Program Governance

• Cost Management

• Time Management

• Scope Management

• Quality Management

Areas of Program Governance (Cont.)

• Risks and Issues Management

• Change Management

• Resource Management

• Vendor Management

• Transition Management

• Communication Management

Questions?