Finance Forum
27 August 2012
Welcome & Overview
• David Sturgiss
Overview
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Welcome and Overview
David Sturgiss
F&BS Review
David Sturgiss
2013 Budget
Melissa Abberton
F&BS Website Update & V9.1 Upgrade
Jaya Ganasan
Student Fees
Charles Mazvidza
AFS 2012
Zachary Ong
Tax
Luke Beckett
RMAO Update
Donna Webster & Nguyen Dang
Discussion Groups – Reporting Needs
Afternoon tea
LAFHA – Working Group Update
Luke Beckett
TM1 & Forecasting
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)
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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
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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)
Millions
Tuition Fee Income
120
100
80
60
ISF
DTF
40
20
0
2003
2004
2005
2006
2007
Year
2008
2009
2010
2011
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
POP QUIZ TIME
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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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THE END
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RMAO Update
• Donna Webster & Nguyen Dang
RMAO Update
• Grant Management Framework – Preparation
and Revision of Grant & Consultancy Budgets
Review
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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
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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
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LAFHA - Working Group Update
• Luke Beckett
LAFHA - Working Group Update
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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
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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
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TM1 & Forecasting
• Ben Lees
Summary
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Data integration
Feedback
Forecasting
Salaries
Security
Forecasting
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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
nVision
templates
not
available
During P10
Aiming to
have TM1
ready for
P11
Forecast
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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
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Salary On-costs
Salary On-Cost Rates
Year
2013
Scenario
Working Budget
On-Cost
Annual Leave
Long Service Leave
Superannuation General
Superannuation Casuals
Workers Compensation
Payroll Tax
Budget Year
0.00%
2.00%
Forward Year 1
0.00%
2.00%
Forward Year 2
0.00%
2.00%
17.00%
17.00%
17.00%
9.00%
1.40%
6.85%
9.00%
1.50%
6.85%
9.00%
1.60%
6.85%
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Salary Reporting
Available reports:
•Salary Profile Reports
•Staffing Budget Costing
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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
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Security
• Security is based on Budget Units in
College Structure Tree
• Salary data can only be viewed by users
with appropriate HR access
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Other
Bluesky Projects
•If projects do not exist in ES Financials, use
an existing Cost Centre
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Questions?
60
Questions?
Next Finance Forum
28 November 2012
Sparke Helmore Law Theatres (No 1)
Register through HORUS
(FBS036 Session 0004)
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