Finance Forum 20th March 2014
20 March 2014
Finance & Business Services
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)
Finance & Business Services
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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
20 March 2014
Finance & Business Services
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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:
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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…
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Only 43% of staff perceived the ANU processes favourably (Staff Survey 2011)
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82% of 139 administrative activities had a high importance / low satisfaction rating
(Administrative Services Survey 2013)
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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
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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)
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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 Group
Centrally 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
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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
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
CURRENT STATE (ANU)
 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
Finance & Business Services
INDUSTRY/SECTOR TRENDS
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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
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Vision
Supporting excellence in education and research
through seamless professional services
Approach
Approach
Program
management
Finance & Business Services
Project
management
Continuous
improvement
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Program management
Support visibility,
transparency and
accountability for
service improvement
projects through a
program
management
approach
Finance & Business Services
•
Oversee the Service Improvement Program
containing 50+ projects and Program ‘Blue Print’ for
current and future state
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Implement a Program Management Framework
(Managing Successful Programs) = interested in
the benefits
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Monitor Tier 1 Projects
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Business process for the identification,
prioritisation, selection and authorisation of service
improvement projects
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Monitor, track and report on progress / completion
of projects within the program
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Project management
Deliver service
transformation
projects on time,
within budget and to
the quality
expectations of the
customer and
end user
Finance & Business Services
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Lead service transformation projects in partnership
with the business owners (more later)
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Provide project assistance and support to Tier 1
Projects
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Business cases for agreed strategic projects in
partnership with business owners
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Project management capability within the University
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Lessons Learnt, Post implementation reviews (PIR)
and benefits tests (BT) for key projects
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Continuous improvement
Provide a
framework,
information and
data to support a
continuous
improvement
culture at the
University
Finance & Business Services
•
Establish a continuous improvement framework and
policy – feedback systems
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Accessible methods to capture service
improvement ideas
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Lead the UniForum Benchmarking Exercise
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Lead the Harnessing Service Capacity study
(Unproductive Activity)
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Establish opportunities for staff to become involved
in the service improvement agenda
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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)
Finance & Business Services
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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
Director.sig@anu.edu.au
Finance & Business Services
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Questions
Finance & Business Services
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Projects Update
Trevor Langtry – A/g Associate Director Financial
Operations & Systems
20 March 2014
Finance & Business Services
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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
20 March 2014
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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
20 March 2014
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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
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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:
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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
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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
Michael.peel@anu.edu.au
02 6125 8755
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Finance and Business Services
Tax Update
Jenny Park – Tax Accountant
20 March 2014
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Tax Update
• Meal Entertainment Fringe Benefits
• 2013/2014 FBT Return Package
• Changes in FBT Rates from 1 April 2014
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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 Benefits
A. Business related morning /
afternoon tea or light meals /
refreshments on University
premises
(e.g. lunch at boardroom meeting)
B. Business related light meals /
refreshments not on University
premises (less than $30 per
head)
(e.g. light meal at a cafe)
C. Business related elaborate meals
held on or off campus
(e.g. “business” lunch or dinner)
Employee
N
5602
GST
Claimable
Y
Associate
Y
5582
Y
Clients
N
5602
Y
Employee
N
5602
N
Associate
N
5602
N
Clients
N
5603
N
Employee
Associate
Clients
Y
Y
N
5582
5582
5603
Y
Y
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
Clients
N
5602
Y
Nature of Expenditure
Finance & Business Services
Attendee
FBT Account
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Meal Entertainment Benefits
Nature of Expenditure
E. Elaborate meals / drinks
incidental to an “Eligible
Seminar” (> 4hrs)
(e.g. gala dinner, pre-conference
dinner with speakers)
F. Event held predominantly for
clients with only a few staff
attending the event
(e.g. BBQ for graduates, alumni
dinner, public lecture)
G. Meals (incl. drinks) consumed
at a social function
(e.g. staff farewell, Christmas
function, etc)
Finance & Business Services
Attendee
GST
Claimable
FBT
Account
Employee
Y
5582
Y
Associate
Y
5582
Y
Clients
N
5603
N
Employee
N
5602
N
Associate
N
5602
N
Clients
N
5603
N
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
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)
18 April 2014 (Fri)
Email spreadsheets with FBT account postings and
LAFHA info to FBT Contacts
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
Finance & Business Services
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Questions
Contact: Jennifer Park
X58734
taxunit@anu.edu.au
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Corporate Finance – Personal Property
Securities (PPS) Act
Michael Lorenzato – Corporate Accountant
20 March 2014
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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
Perfection
Once a security interest is registered on the PPSR, considered
perfected for the purposes of the PPS Act
In 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
Race horse owner
leases horse to
ABC Pty Ltd for
18 months
Liquidator returns
horse to its owner.
Liquidator search PPSR
and find’s owner’s
registration over horse.
Race hose owner
registers interest in
ABC Pty Ltd as longterm lessor of personal
property.
ABC Pty Ltd goes
into liquidation
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 (michael.lorenzato@anu.edu.au)
Corporate Accountant
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