Finance Forum Presentation

Finance Section9th November 2012

1.) Financial Plan OverviewPast Present

2008 2012

SP 2010-12: Recovery Plan

1.) Rationalization• New SMT structure• 4 – 3 faculties• Reviews & Restructure• Rationalize courses &

programmes2.) Financial reforms

• Revamped Scheme of Financial Delegations

• Enforce Financial Policies• Stronger budgetary controls• IFRS compliance• Value for money

procurement processes

• Income Growth• Significant

increase in Aid Funds

• Control in expenditures

• Exceed operating surplus targets• Increase investments in capex• Positive net cash

flows 2

Impact on Operating Surplus: 2007 - 2012

Recovery Plan

2007 2008 2009 2010 2011 AP2012

-$2

$0

$2

$4

$6

$8

$10

$12

$14

$16

$(0.2)

$5.4

$15.9

$4.8

$6.2 $5.6

1.9 2.1 1.7

Year

FJD

($) m

illio

ns

FP targets

Actual

3

2006 2007 2008 2009 2010 2011 AP2012

-$15

-$10

-$5

$0

$5

$10

$15

$20

$(9.8) $(10.2)

$10.5

$16.4

$9.5

$3.3

$0.5

Year

FJD

($) m

illio

ns

Impact on Net Cash Flows: 2006 - 2012

Recovery Plan4

Budget 2013

 FP2013

($m)AP2013

($m)

Income               166.1 

               172.8 

Expenditures               161.1 

               162.2 

Surplus Before SP Funding

5.0

10.6

SP costs                   

4.9                    

8.5 

Surplus

0.1

2.1 Surplus % 0.1% 1.2%

Capex 5.0 6.0Net Cash Flows 0.7m 0.5m

Finance Review 2011• Review commissioned by the University;

• All support sections under formal review.

6

Key Themes of the Review

1. The need for the section to support and contribute to the strategic objectives of the University;

2. Excessive emphasis on control and was hurting the University;

3. Must take advantage of technology.

8

Key Responses to the Review

1. Welcome the positive comments in its contributions to the turn around in financial performance for the University;

2. Agree to focus on providing strategic leadership;3. Agree on reducing excessive levels of controls and

encourage devolution with appropriate level of trust and accountability;

4. Many of the delays are outside of Finance but understands our role in follow ups and providing training for key processes;

5. No fit for all size solution.9

Vision - to be a strategic enabler for the University and leader in best financial practice in the region.

Re-align structure to support new direction

Executive Director Finance

Management Accounting Finance Operations Finance Planning

           

* Management Accounting * Procurement   * Financial Analysis  

* Financial Reporting * Accounts Payable   * Budgeting  

* Fixed Asset Accounting * Payroll   * Forecasts  

* Treasury   * Accounts Receivables * Strategic Planning Support

* Faculty and Regional  * Students Finance   * Finance Systems  

   Campus Supports          

                 

Governance of USP Finances

Financial Policies and Procedures

Implemented and enforced by: VC and EDF

Financial Regulations and Delegations

Delegated to and monitored by: Finance & Investments CommitteeUSP Charter, Statutes and Ordinances

Controlled by: Council

Progress and Plans

Implemented

• Amended Procedures

• Removed layers of checks

• Simplified process

• Elements of trust to delegation holders

• Rely on audits• Staff &

stakeholder training

In Progress

• Increase delegations on tender & for SMT

• Change communication strategies

• More training & support to sections

• Proactive follow ups

Next Steps

• Automate processes

• Improve turn around time

• Improve reporting

• Improve student support

• Transform internally

Our Path to ExcellenceStrategic Support•Finance Dashboard•Financial Report on

click of a button•Achieve more than

target surplus performance through effective revenue and expenditure management

•Top analytical team

Quality Service•1 day staff payments

turn around time•All vendors paid within

30 days•Timely and accurate

advise and support to all sections

•Excellent student support

Efficient Processes•Automated procure to

pay cycle•Automated travel

process•Automated student

invoicing and payments system

•Automated creditor and bank reconciliation system

•Automated timesheets and overtime process

Quality Staff• Customer oriented team, ready to serve the USP community at any time•One stop shop for all financial advise for USP and the region•Employ the best finance staff

A glimpse of Finance Section by end of 2015

Thank you again for Listening