finance & business services finance forum 20 th march 2014 20 march 2014
TRANSCRIPT
Finance & Business Services
Finance Forum 20th March 2014
20 March 2014
AGENDA
1.Introduction (David Sturgiss, CFO)
2.Service Improvement Group – Overview (Karen Hill, Director)
3.Projects – Overview of Current Projects (Trevor Langtry, A/g Assoc.Director, Fin.Ops. & Systems)
4.Research Accounting – Presentation of SPF FRM (Victoria Allen, Finance Manager Science)
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AGENDA
5. Investments - Foreign Currency Transactions (Michael Peel, Treasury Manager)
6. Tax Unit – Tax Update (Jenny Park, Tax Accountant)
7. Corporate Finance – Personal Property Securities (Michael Lorenzato, Corporate Accountant)
8. General Question Time
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F&BS Organisational Structure
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Service Improvement at ANU
Karen Hill - Director, Service Improvement Group
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Background
Universities are facing a number of challenges including financial constraints, increasing regulatory demands and increased competition.
A range of activities have been undertaken to assess efficiency and effectiveness of administrative services:
•Staff Survey (2011)
•Administration reviews (2012 – 2013)
•UniForum Benchmarking (2011 -2013)
•ANU Forms Audit (2013)
•Budget Solutions Process (2013)
•Administrative Services Survey (2013)
•Harnessing Service Capacity study (2013)
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Some quick stats…• Only 43% of staff perceived the ANU processes favourably (Staff Survey 2011)
• 82% of 139 administrative activities had a high importance / low satisfaction rating (Administrative Services Survey 2013)
• An average across the range of activity categories (correcting, checking, looking waiting, duplicating, unnecessary work) showed staff members spend approximately 16% of a 35 hour week on unproductive activity – approximate annual salary value of $25.5 million
• Staff felt integration of IT systems would make administrative processes and activities more efficient and save an average of 6.6 hours (18.9%) in a 35 hour working week (Harnessing Service Capacity Study 2013)
• 80% of forms identified in the audit were manual and paper based (Forms Audit 2013)
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The Service Improvement Group
The Service Improvement Group partners with areas of the University to:
Identify seek and support initiatives that deliver efficiencies
Connect bring together areas to reduce duplication and leverage resources
Challenge provide independent challenge to projects to achieve best results
Simplify overcome barriers by simplifying complex problems
Measure provide frameworks to monitor, measure and report on benefits
Share communicate knowledge of successes and key learning's to continuously improve
Compare understand our own service performance and learn from other universities.
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The Service Improvement GroupCentrally governed and coordinated approach that focuses on promoting and driving change through core strategic projects aimed at:
Access customers can access services at the right time, right place, in a manner that suits them
Effectiveness effective service delivery outcomes for ANU
Efficiency streamlining and simplifying processes and structures
Clarity clear lines of responsibility and ownership – less duplication
Integration enterprise wide processes, systems and services that align and integrate
Capability empowering continuous improvement in service delivery and support
Innovation recognising, advocating, sharing and fostering innovation.
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Our Expertise/Skills• Program Management• Project Management• Business Analysis• Information Analysis • Business Process Mapping• Business Process Improvement • Service Redesign • Change Management • Communication • Organisational Design • Stakeholder engagement • Benefits mapping
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The team brings a wealth of experience in sectors including: Higher Education, Immigration, Transport, Finance, Telecommunications, IT, Health, Defence, Manufacturing & Energy
Postgraduate qualifications also include Business, Management and Communications.
Prince2 and MSP Certified
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Trends in Industry/Sector
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Manual and paper based Duplication Inconsistent customer
experience High touch points Fragmented processes Resource intensive Disparate and out of date
systems Multiple sources of
information/data Inaccessible
CURRENT STATE (ANU)
Automated and paperless Minimal touch points Self Service Customer driven Streamlined end to end
processes Cost effective Integrated systems Supported by business
intelligence Single online portal for
services
INDUSTRY/SECTOR TRENDS
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Approach
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Supporting excellence in education and research through seamless professional services
Program management
Project management
Continuous improvement
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Program management• Oversee the Service Improvement Program
containing 50+ projects and Program ‘Blue Print’ for current and future state
• Implement a Program Management Framework (Managing Successful Programs) = interested in the benefits
• Monitor Tier 1 Projects
• Business process for the identification, prioritisation, selection and authorisation of service improvement projects
• Monitor, track and report on progress / completion of projects within the program
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Support visibility, transparency and accountability for
service improvement projects through a
program management
approach
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Project management
• Lead service transformation projects in partnership with the business owners (more later)
• Provide project assistance and support to Tier 1 Projects
• Business cases for agreed strategic projects in partnership with business owners
• Project management capability within the University
• Lessons Learnt, Post implementation reviews (PIR) and benefits tests (BT) for key projects
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Deliver service transformation
projects on time, within budget and to
the quality expectations of the
customer and end user
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Continuous improvement
• Establish a continuous improvement framework and policy – feedback systems
• Accessible methods to capture service improvement ideas
• Lead the UniForum Benchmarking Exercise
• Lead the Harnessing Service Capacity study (Unproductive Activity)
• Establish opportunities for staff to become involved in the service improvement agenda
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Provide a framework,
information and data to support a continuous
improvement culture at the University
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Priority projects (Tier 1)
Project Managed by the SIG Other T1 Projects
ANU Gateway and Staff Intranet (MO) Strategic Procurement (Fleet and Travel) (FIN)
CI Financial Reporting (FIN/RCH) Management Reporting (PPM)
On Line Recruitment (HR) Workspaces (ITS)
ERMS (SIG) Energy and Water (F&S)
Budget Infrastructure (FIN) On Line Timesheets (HR)
Maximo Upgrade (F&S)
Multi User List (F&S)
Parking (F&S)
Archibus – Space Mgt System (F&S)
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New Policy: Project Management
Project Management Policy, Procedure, Sizing Guidelines and Templates
https://policies.anu.edu.au/ppl/index.htm
http://sig.anu.edu.au/tools-and-templates
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More information
Visit: sig.anu.edu.au
Contact: Karen Hill, Director
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Questions
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Projects Update
Trevor Langtry – A/g Associate Director Financial Operations & Systems
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Proposed New Projects
Procurement to Pay:•Requisitioning – a simplified requisitioning with approval workflow
– Specifications completed and costed by ITS– Pending Scheduling for development
•Integration between Chemical Inventory System and P/Soft Financials
– Replacement of CIS with P/Soft Functionality ????
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Projects Update Cont….
Accounts Payable Workflow Rollout•At the tail end – approx 85% going through workflow•Post Implementation Issues
OneStop Receipting (2014)•Commenced•Three Phases
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Projects Update Cont….
Travel System•Have experienced some delays •Pilot with CAP in 2 to 3 months
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Research Accounting – SPF FMR
Victoria Allen, Finance Manager Sciences
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SPF Financial Management Report
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Statement Tab
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Journals Tab – transaction listing
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Viewing all period transactions
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Sorting by budget class
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Project Tab
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Payroll Costing Tab
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SPF Financial Management Report
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SPF Financial Management Report
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Most commonly asked question – What is the balance on my account?
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Income
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Income details
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Expenditure
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Income vs expenditure
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Income vs expenditure
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Income vs expenditure
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Budget vs Actuals
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Budget vs Actuals
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Budget vs Actuals
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TEA BREAK
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Investment Office – Foreign Currency Transactions
Michael Peel, Treasury Manager
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Overview
Transactions can be made at
1.Spot (today)
2.A future date (forward)
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Larger Foreign Currency Transactions
• For transactions greater than $100,000 the Investment Office can assist
• For spot (today) transactions, the Investment Office has access to wholesale market rates
• For future transactions, the Investment Office is able to remove foreign currency uncertainty by:1. By transacting at spot (at wholesale rates) and then placing the foreign currency in either a foreign currency term deposit or a foreign currency account (USD only)
(Funds must be already available)
2. Entering into a Forward to lock in a rate today
( Funds must be available for settlement at an agreed future date)
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Removing foreign currency uncertainty
• Why do we do this? – To protect the AUD position
• When do we do this? – When there is a firm commitment or purchase order
and funding is approved
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Option 1: Buy at Spot (Funds available now) • Summary Steps Involved:
1. Delegate Approves the transaction
2. Investment Office contact NAB FX Desk and buy Foreign Currency
3. Investment Accounting team arrange settlement
4. Funds are placed in Term Deposit or a Foreign Currency Account
• Interest received is slightly higher in a Term Deposit account
• Typically a Term Deposit is entered into when payment dates are known
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Option 2: Enter into a Forward Contract (Funds available at future settlement date)• Summary Steps Involved:
1. Finance Manager liaises with Investment Office who obtain forward quotes
2. Delegate Approves the transaction
3. Investment Office contact NAB and ANZ FX Desks to obtain final quotes and execute deal based on best rate
4. Investment Accounting Team arrange settlement at forward dates
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Case Study: • 30 May 2013
– Spot AUDUSD rate was 0.9669
– ANU wanted to sell AUD 10.0m forward and buy the equivalent USD forward, with settlement on 25 June 2014.
– Although we had committed to send AUD $10.0m, the more USD we sent the better
– The Investment Office obtained pricing from NAB and ANZ, and then entered into a forward to buy USD forward at a rate of 0.9423 (USD 9,423,000).
• 19 March 2014 – Spot AUDUSD was 0.9130
– Current forward rate for settlement on 25 June 2014 was 0.9070
• Result– As of yesterday, ANU was ahead by $389k. Of course, the AUD could have
strengthened over this time and we would have been behind.
– The purpose of this hedge was to remove FX uncertainly – i.e. we locked in purchasing USD 9.4m.
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Reason for Difference: US and AUS Interest Rates
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AUDUSD
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AUDEUR
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Going Forward
• Finance and Business Services are currently developing a Foreign Currency Transactions Policy
• This is expected to be operational by June 2014
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Contact Information
Michael Peel
02 6125 8755
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Finance and Business ServicesTax Update
Jenny Park – Tax Accountant
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• Meal Entertainment Fringe Benefits• 2013/2014 FBT Return Package • Changes in FBT Rates from 1 April 2014
Tax Update
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Meal Entertainment Benefits• Each transaction must be looked at individually
in terms of its nature and substance to determine whether FBT applies
• Use either the light meal stamp where appropriate and add a brief description
• or complete the Food and Drink FBT Declaration form (Excel ANU_005603 or Paper ANU_005602)
• Ability to claim GST will vary with option chosen
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Meal Entertainment BenefitsNature of Expenditure Attendee FBT Account GST
Claimable A. Business related morning /
afternoon tea or light meals / refreshments on University premises
(e.g. lunch at boardroom meeting)
Employee N 5602 Y
Associate Y 5582 Y
Clients N 5602 Y
B. Business related light meals / refreshments not on University premises (less than $30 per head)
(e.g. light meal at a cafe)
Employee N 5602 N
Associate N 5602 N
Clients N 5603 N
C. Business related elaborate meals held on or off campus
(e.g. “business” lunch or dinner)
Employee Y 5582 Y Associate Y 5582 Y Clients N 5603 N
D. Light meal/drinks incidental to “Eligible Seminar” (> 4hrs)
(e.g. lunch at seminar, finger food, small amounts of alcohol after session)
Employee N 5602 Y
Associate Y 5582 Y
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Meal Entertainment BenefitsNature of Expenditure Attendee FBT Account
GST Claimable
E. Elaborate meals / drinks incidental to an “Eligible Seminar” (> 4hrs)
(e.g. gala dinner, pre-conference dinner with speakers)
Employee Y 5582 Y
Associate Y 5582 Y
Clients N 5603 N
F. Event held predominantly for clients with only a few staff attending the event
(e.g. BBQ for graduates, alumni dinner, public lecture)
Employee N 5602 N
Associate N 5602 N
Clients N 5603 N
G. Meals (incl. drinks) consumed at a social function
(e.g. staff farewell, Christmas function, etc)
Employee Y 5582 Y
Associate Y 5582 Y
Clients N 5603 N
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2013/2014 FBT Return Package• FBT Packs and spreadsheets to be published
on the F&BS website by 26 March 2014.
• Car Odometer Readings:– No cars in the FBT Packs – Details will come from SGFleet
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2013/2014 FBT Return Package
• Important Key Dates
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Date Task
28 March – 3 April Drivers to fill up fuel and provide accurate odometer reading at time of fuel purchase.Otherwise, SGFleet will use the latest date (i.e. the last time they filled up)
1 April 2014 (Tue) Tax Unit commences the FBT Packs preparation
8 April 2014 (Tue) Email spreadsheets with FBT account postings and LAFHA info to FBT Contacts
18 April 2014 (Fri) FBT reports due to be submitted by Areas
9 May 2014 (Fri) Distribute reports to Areas re. FBT liability
30 June 2014 (Mon) Reconciliation of FBT accounts complete & journal posted
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Corporate Finance – Personal Property Securities (PPS) Act
Michael Lorenzato – Corporate Accountant
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Personal Property Securities Act What is the PPS Act and the PPSR?The PPS Act establishes a national system governing the use of
personal property as security. Essentially an electronic register that operates as a ‘noticeboard’ of security interest.
What is personal property?Property other than land and fixtures or a right, entitlement or authority
granted by law and declared not to be personal property for the purposes of the PPS Act.
What is a security interest?An interest in personal property that is provided for by a transaction
that, in substance, secures payment or performance of an obligation.
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PPS Register & Perfection
PPS Register
PerfectionOnce a security interest is registered on the PPSR, considered perfected for the purposes of the PPS ActIn most cases, it is the date of perfection which will determine the order of priority for creditors.Security interests are enforceable against third parties if attached and there is perfection by possession, control or registration
Perfection by registration (most effective) Perfection by control and/or possession is only relevant for certain categories of
finance products
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PMSI (Long-term Lease) example
Without registration, horse would be sold by liquidator to cover debts of ABC Pty Ltd
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Importance for ANU
Research Institutes must make sure their equipment and other property is properly protected Lending Equipment to third parties Selling Equipment to a third party on Deferred payment terms
Scenario Register? Reason
License your IP to a third party. No IP licenses are not security interests, can be register on relevant IP register.
Outsourcing IT operations, you provide equipment to the outsourcer but you still own it.
Yes By registering, you maximise your rights against third parties in case the outsourcer hits financial difficulties or improperly imposes of the equipment.
Lend equipment to a third party Yes Example above.
Sell equipment to a third party on deferred payment terms.
Yes Example above.
Obtain an option to purchase particular intellectual property.
No Right is not required to be registered as not a security interest.
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Policies & Procedures
Information to register interests will be obtained from each relevant College / Division
Update at Next Finance Forum with deadlines and procedures required to register security interests on the PPSR
Michael Lorenzato ([email protected])
Corporate Accountant
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