Finance Forum

27 August 2012

Welcome & Overview

• David Sturgiss

Overview

• Welcome and Overview • F&BS Review • 2013 Budget • F&BS Website Update & V9.1 Upgrade David Sturgiss David Sturgiss Melissa Abberton Jaya Ganasan • Student Fees • AFS 2012 Charles Mazvidza Zachary Ong • Tax • RMAO Update • Discussion Groups – Reporting Needs Luke Beckett Donna Webster & Nguyen Dang • Afternoon tea • LAFHA – Working Group Update • TM1 & Forecasting Luke Beckett Ben Lees

F&BS Admin Review 2012

• David Sturgiss

F&BS Admin Review 2012 • Our Role is to support the University achieve its Academic goals & your College Goals • KEY F&BS Departments – Management Reporting / Budgets & SPF- Peter Shipp & Melissa Abberton & Lorraine Piper – Financial Operations - Jaya Ganasan & Trevor Langtry – Procurement – Tim McPherson – Investment Office – Mark Waldron – Corporate Role – Finance Committee / Council / Corporate Finance / ANU Exchange Development etc

F&BS Admin Review 2012 • Overall positive review • 16 Recommendations in total – most are in the direction we were heading and this will provide momentum • No.2 Prioritise development & Production of periodic financial management reports.

• buy-in from the College users to ensure needs met • Consistent/standardised approach to reporting. – Exec – Strategic Reports ; College Deans/GM’s – Management Reports ; Functional Managers, CI – Operational Reports

F&BS Admin Review 2012 • No7. Service performance metrics • To better measure Finance administration effectiveness across campus • No 8. Consolidation of staff currently dedicated to finance administration in central service divisions into one unit • Does not necessarily mean co-located

F&BS Admin Review 2012 • No.10. Implement better annual plan to prioritise development of projects • Provide the opportunity for more “input” for all into the process • Projects to keep system “up to date required” first • No 11. Mandate the use of service providers for basic commodities • Large savings available (many studies show this) 8

F&BS Admin Review 2012 • No.14 Mandate a training framework for all University staff accessing the University’s financial management system, including mandatory training prior to accessing the system • Make staff more productive • improve accuracy/integrity of data

F&BS Admin Review 2012 • No.16. In consultation with HR develop and implement a structured program of training for Divisional Staff and ANU College Staff. – including staff rotations • Make staff more productive, consistent practices & improved financial management • No.1. Should consider merger of the Division of F&BS & PASS – to better support Uni strategic financial planning • The key outcome is “improved strategic planning “ • Greater integration in reporting & enhanced capability

F&BS Admin Review 2012 • No 5. F&BS as Practice Leaders for finance function • Responsible and responsive • Finance talent across the Campus to be applied to solving problems, improving systems, processes • Training • No 4./ 6. Ensure Clarity of role & responsibility for Division- & College for Delivery of finance functions • Some information on web now • Polices / Procedures/Guidelines/ Forms / manuals – only one set for all of the University

QUESTIONS?

2013 Budget Timetable

• David Sturgiss & Melissa Abberton

2013 Budget Timetable

2013 Budget Timetable

F&BS Website Update

• Jaya Ganasan

F&BS Website Update

• New F&BS Website • V9.1 Upgrade 17

Fee Distribution

• Charles Mazvidza

Overview

• Fee distribution is the process of calculating tuition fee revenue deductions and distribution of the net fee revenue to recurrent ledger from the F ledger • Applies to tuition fees – both domestic and international • Applies to fees calculated and posted in Student System • Deduction rates are determined by the OVC • Done four times a year • ISF Net Fee = Total Charge – Capital – Agent Commission - Overheads • DTF Net Fee = Total Charge – Overheads

Distribution Periods

• Semester 1 – Period 6 (summer, semester 1 & autumn) • Semester 2 – Period 10 ( winter & semester 2 ) • Spring – Period 13 • Final – Year End

Fee Distribution - Reports

• Student TB – used to report on and ensure integrity between Student Financials and the General Ledger • Corporate TB – outstanding debtors and also used for reconciliation • Net Fee Distribution Report – contains academic and financial information • Student Transaction Posting Report • Class Roaster Report

Distribution Process

• Net Fee Distribution Report checked against the Student TB for integrity and completeness • Calculation of capital, agent commission and overheads deductions • Identification and adjustment of research students on extension using the Corporate TB • Splitting of the NAWD Study Abroad fees using the Class Roaster report • Calculation of the College 20% on DTF net fee • Journals processed against accounts 7015 (ISF) and 7015D (DTF)

Tuition Fee Income

120 100 80 60 40 20 0 2003 2004 2005 2006 2007

Year

2008 2009 2010 2011 ISF DTF

QUESTIONS?

AFS 2012

• Zachary Ong

AFS 2012

• Stocktake – start now • WIP – Review before year end • Building Valuation – Currently underway • 7000, 8000 and Asset Reconciliations

Tax Update

• Luke Beckett

P O P Q U I Z T I M E

and opportunity for learning

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Question 1 The ANU is exempt from income tax because: a) The ATO likes the ANU b) The ANU Act exempts the ANU from tax c) The ANU is not exempt from income tax d) The ANU has a private ruling 29

Question 2 GST applies to transactions that: a) Are for consideration b) Where a supply is made c) Transaction is connected with Australia d) All of the above 30

Question 3 GST applies to a grant where: a) The contract has a clause about GST b) There is a connection between the grant and activities the ANU must do c) The grantor requires the ANU to report on how the funding is spent d) It is a good idea 31

Question 4 A tax invoice contains: a) The words “Tax Invoice” b) Name, Address and ABN of the supplier c) Indication of what the GST amount is d) All of the above 32

Question 5 If a tax invoice is missing the ABN: a) We must request a new tax invoice b) Rely on the ABN provided on their website c) Use the ABN on other documents for the same supply d) Ignore it and claim the GST anyway 33

Question 6 Reimbursements to students mean: a) GST cannot be claimed b) If a tax invoice is provided, GST can be claimed c) FBT will apply to any meal expenses d) This is too hard, are you done yet?

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Question 7 Fringe Benefits Tax applies when: a) A staff member takes a ute home b) Alcohol with a meal is provided to a travelling employee c) A staff member receives a personal benefit paid for by the ANU d) When a student gets their fees paid by the ANU 35

Question 8 An employee for FBT purposes is: a) Uncertain and must be reviewed all the time b) A student enrolled in an ANU course c) A ANU business contact d) A ANU staff member and their spouse 36

Question 9 An FBT exempt light meal is: a) Sandwiches only b) Is hard to define and will depend on the circumstances c) A meal that costs less than $25 d) Any meal that is take away 37

Question 10 When coding a light meal receipt, I should: a) Code it to 5602 with description “Light Meal” b) Code to 5602 and provide evidence on the paperwork why it is a light meal c) Use the light meals stamp d) Ask if I can come next time 38

Question 11 The FBT treatment of a Christmas Party is: a) Exempt if it is held on ANU premises b) Exempt if there is no alcohol provided c) Partially exempt if only a few people have fun at the party d) Fully subject to FBT 39

Question 12 If a staff member goes to the USA for 2 conferences with a week between: a) The week between is treated as personal component so FBT applies to costs b) The staff member should come home c) The week between is treated as business d) They should enjoy the hotel pool 40

T H E E N D 41

RMAO Update

• Donna Webster & Nguyen Dang

RMAO Update

• Grant Management Framework – Preparation and Revision of Grant & Consultancy Budgets Review – Grants management framework has been developed – Audit recommendations mapped to framework – RMAO reviewed audits against the framework – Results to the Audit & Risk Management Committee (ARMC) – Undertake review of pre-award grant budget preparation and revision, and post-award budget variations

RMAO Update

• Compliance with National Health & Medical Research Council Audit – Review by the NHMRC in 2011 – NHMRC requested

substantially increase audit

– Internal Audit Plan includes internal audit of NHMRC – Testing is complete – RMAO will be contacting finance and research areas & some CI – The only three areas concerned are RSB, JCSMR and RSPE

Discussion Groups

• Reporting Needs 45

LAFHA - Working Group Update

• Luke Beckett

LAFHA - Working Group Update

• Visitor payment decision tool • Relocated vs traveller determination tool • Payments from HRMS – banking requirements • Reviewing person of interest to identify visitors • Updated visitor invitation letter • Emailed ANU Academics, GM’s, Deans re changes • Paying visiting academics policy • Bona fide travel allowance payment rules 47

Where are we at?

• Tax Laws Amendment (2012 Measures No. 4) 2012 bill has been passed by the House of Representatives • The bill was sent to House Standing Committee on Economics who have reported back to the House of Representatives. The bill was amended following the report • We are waiting for the bill to be passed by the Senate and therefore are working with anticipated changes 48

TM1 & Forecasting

• Ben Lees

Summary

• Data integration • Feedback • Forecasting • Salaries • Security • Forecasting 50

Data Integration

• Salary Data as of 15 August 2012 and will not be updated this Budget Cycle.

• Actuals as of Period 8 and will be updated every period.

• Department Structure replicates College_Structure Tree in ES Financials.

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Feedback

Reporting

•Adhoc Reports can be built from Cubes •BSO will provide default public views •Users can create their own private views •Prior years values (Budget and Actuals) will be progressively loaded into TM1.

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Forecasting (Operating & Staffing)

•Currently user acceptance testing Forecasting •Continue using nVision templates to do forecast until Period 10 Current (P9) Budget – Tm1 Forecast nVision Mid September ES Financials v9 go live During P10 Aiming to have TM1 ready for P11 Forecast nVision templates not available 53

Salary Assumptions

On-Cost Formulas

•Consistent with Current nVision design •Adjustments can be processed for material differences •Salary Assumption notes are available on the TM1 website 54

Salary On-costs

Salary On-Cost Rates Year Scenario On-Cost

Annual Leave Long Service Leave Superannuation - General Superannuation - Casuals Workers Compensation Payroll Tax

2013 Working Budget Budget Year

0.00% 2.00%

Forward Year 1

0.00% 2.00%

Forward Year 2

0.00% 2.00% 17.00% 9.00% 1.40% 6.85% 17.00% 9.00% 1.50% 6.85% 17.00% 9.00% 1.60% 6.85% 55

Salary Reporting

Available reports:

•Salary Profile Reports •Staffing Budget Costing 56

Modifying Salary data

Changes to Salary Data

• Existing Salary Data can currently be changed in TM1 • This is consistent with nVision templates • Recommend validating final budgets against HR reports 57

Security

• Security is based on Budget Units in College Structure Tree • Salary data can only be viewed by users with appropriate HR access 58

Other

Bluesky Projects •If projects do not exist in ES Financials, use an existing Cost Centre 59

Questions?

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Questions?

Next Finance Forum 28 November 2012 Sparke Helmore Law Theatres (No 1) Register through HORUS (FBS036 Session 0004) Close!