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Finance Forum Presentation. Finance Section 9 th November 2012. 1.) Financial Plan Overview. SP 2010-12: Recovery Plan. Past Present - PowerPoint PPT PresentationTRANSCRIPT
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