Finance Office Induction

Xx xxxx 2013

Today

Welcome and introduction Accounting Internal Audit Payroll/Pensions/Systems Procurement Research & Innovation Services Treasury Management

Introduction

Higher Education Sector as a whole University of Birmingham

HEI (UK)PLC v Univ of Bham 2011/12

HEI UK £m Turnover 27,799 Fixed Assets 33,492 Pay Costs 14,809

Employees 378,205

UoB £m 472 594 254

6,146

University Accounts 2011/12

INCOME £m HEFCE 138.3 Fees 136.3 Research 103.3 Residences 32.3 Investments 5.9 Health Auth. 14.2 Other 41.7 TOTAL 472.0

EXPENDITURE £m Acad Schools 288.9 Acad Services 52.3 Premises 50.6 Administration 32.6 & Central Services Residences 29.3 Other 12.5 TOTAL 466.2

Key Indicators

Balanced income and expenditure account Controlled use of reserves Sustained capital investment Cash to support the business

Corporate Services Divisions

IT Services

HAS Finance

DABE

External Relations

BMSU Academic Services

Legal Services

VC’s Office

Estates Human Resources

Planning

Director of Finance what do I do?

Overall responsibility for ensuring the University

remains financially sound! Setting financial policy for the University Spotting and acting on major changes in the various

funding environments as early as possible Advise Council, Vice Chancellor and Pro Vice

Chancellors on Financial issues External facing role – supporting HE Sector

developments often with the HEFC E

Director of Finance how do I do it?

Through the efforts of all staff in the Finance Office! Attend Council, SPRC and other major Committees Meet weekly with Executive Board; Registrar and Secretary;

Senior Officers and College Directors of Ops. Meet weekly with Assistant Directors of Finance Interfacing regularly with external bodies – Treasury, Funding

Council, NHS, banks, Investment Managers, advisers Personal role:

– Council Member of Science & Technology Facilities Council (STFC) one of UK Research Councils

Who does the Finance Office work with?

Everyone within or associated with the University will have contact with one or more of the Finance Office divisions.

Divisions and Sections within the Finance work together We work throughout the structure from Council;

University Committees and Boards to individual employees and students.

Externally – funders of Research; HEFCE; TDA; commercial organisations as clients and suppliers through to individual members of the public.

Accounting Erica Conway

Accounting What do we do?

First financial point of contact for Colleges, Corporate Services Budget Centres (including Capital) & Residences, Catering & Conferences

Research support – pre and post award, budgeting, financial planning, management reporting, governance and ethics, contracts, external audits

fEC & project work for all areas of Finance & wider University

External financial reporting to various stakeholders

Accounting How do we do it? (1/2)

Academic - Business Planning & Accounting – 5 teams look

after 5 Colleges - Strategic and financial support, together with

management accounting and forecasting

Corporate Services & Capital - Corporate Services area – team looks after a

number of budget centres for regular reporting, budgeting and forecasting

- Capital team - Support of 10-15 year capital plans, financing and decision processes

- HAS - teams looking after catering, residences, conferences & retail

Accounting How do we do it? (2/2)

Research Support Group - Individual teams supporting the Colleges with

dedicated group for European & regional funding - Support for costing, governance, ethics and contracts - Pre and post award support to Academics

Corporate Accounting - fEC (full economic costing) & projects - External annual reporting including financial

statements for University and subsidiaries - Support of subsidiaries - Institutional level management reporting and

forecasting

Internal Audit Service Lesley Lucas

Internal Audit what do we do?

Provide Council (via Audit Committee) and Senior Management with an independent opinion on the effectiveness of governance, risk management, operational control, Value For Money and data quality

All HEIs are required to have internal audit – can be in-house, or outsourced. Computer Audit work outsourced to Deloitte

Independence? A state of mind, not linked to formal reporting lines – BUT reporting lines are to Director of Finance, Registrar & Secretary and Chair of Audit Committee

Fraud and other investigations Money Laundering Reporting Officer

Internal Audit how do we do it?

Audit all areas of the University to form the required opinions. The

frequency of audit depends on the perceived risk of the area Annual Plan of work approved by Audit Committee The scope of each audit is agreed after discussion with local

management and research into background information (not a standard checklist approach).

Testing plan undertaken to test the effectiveness of the controls that have been identified

Draft report for discussion Final report issued with Management Action Plan – reviewed by Audit

Committee Follow up of recommendations

Payroll, Pensions & Systems

Tim Fuery

Payroll, Pensions and Systems what do we do?

Strategic advice to University on legislative change as it affects Payroll and Pensions

Advice on operational issues Provide customer focussed payroll and pensions service for

the University Advise University on financial systems strategy and policy

and provide administrative support and training on financial systems

Undertake the statutory activities associated with the provision of a payroll and pension service

Ensure compliance and manage risk in the complex payroll and pensions environment

Payroll, Pensions and Systems how we do it?

Through highly experienced staff in each section Using appropriate software that we have

contributed to the development of Using processes and procedures that are being

constantly refined Working closely with colleagues in the Finance

Office and throughout the University And relying critically on effective communications

Procurement Division Tim Fuery

Procurement Division – What? Advisory Role on Procurement for Colleges and

Corporate Services Contracts for the Purchase of Products & Services Establishing Framework Agreements University Procurement Strategy and Policies Implementing E-Procurement Solutions Influence Non Pay expenditure

Procurement Division – How? 6 Procurement Advisors providing advice and support Devising Commodity Strategies for Products &

Services Implementing and Managing Framework Agreements

& Contracts Compliance with Legislation (Public Contracts

Regulations 2006) Co-ordinating procurement by working with Colleges

and Corporate Services and HE Sector Consortia and other Institutions

Research & Innovation Services

Steve Taylor

RIS - What do we do? Strategic Research Partnerships Bids for funding of strategic projects City and regional engagement Post-award oversight of large strategic projects (e.g. Science City) Research Information & European Funding Support Bids for international funding (e.g. EU FP7) Intelligence for funding and policy initiatives Administration of e-submission of proposals Post-award oversight & audit trail Alta Innovations Ltd IP protection and licensing Spinout creation and support Personal academic consultancy Research Park Management Market Intelligence Enterprise training of academics Proof of concept funding

RIS HOW?

Robbie Mackenzie

RIS - Outputs Activity Measure

University income significantly influenced by RCS activity £70m

Academic delegates present at RCS run events in the year 1030 delegates

Value/number of large ‘Strategic’ project bids developed and supported £40m/11 bids

Value/number of new Knowledge Transfer Partnerships (KTPs) £1.2m/9 KTPs

Value/number of new Technology Strategy Board collaborative R&D projects developed and supported

£5m/14 projects

Value/number of EU bids developed and supported £16.2m/264 bids

Value/number of EU project files being actively maintained for audit trails £44.6m/121 projects

Licence income received and distributed to inventors and the University £305k

Alta Innovations Ltd & Research Park turnover £3.4m

Patents filed/new licences negotiated and signed 20 patents/18 licenses

Number of academic staff consultancies supported 89 consultancies

Businesses contacted/new projects arranged 1185 business/152 projects

Number of market intelligence and business case analyses undertaken 67 assessments

Treasury Management Richard Shortland

What do we do? We collect money Income Collections Student Fees

Treasury Management Credit Control

We bank and allocate money Income Processing We pay creditors Accounts Payable (Payments) We manage and invest money Treasury We arrange insurance and account for

and administer VAT

Treasury Management How do we do it?

Dedicated teams for each area

Good processes and procedures

Continue to improve by innovation and evolution

We aim to understand change in the internal and external environment

We employ specialist and highly skilled external organisations, where appropriate

We work with key partners and providers

We work with support and rely on colleagues in Colleges and Corporate Services

Treasury Management How do we do it?

Online Shop http://www.shop.bham.ac.uk

Manage event bookings and process income – collect registration and other required details

Flexible – set up to suit your needs

Efficient processing – income posted direct to your account code; no banking or FIN forms

Customer focused – available 24/7

Cost – free to you and the customer!

Questions ?