2010 Finance Forum
22 September 2010
Innovation Lecture Theatre
Welcome
David Sturgiss
Agenda
Welcome
David Sturgiss
10 minutes
Update of activities of Financial Operations and
BSO
Brigid Lever
5 minutes
Annual Financial Statements
Linda Puah
10 minutes
Transparent Cost of Research Update
Peter Shipp
10 minutes
Chart of Accounts Review Update
Peter Shipp
10 minutes
Policy Update
Amanda Walker
10 minutes
Finance Related Training Update
Amanda Walker
10 minutes
Tax Update
Callum Burke
10 minutes
2011 Budget Update
Mark Baker
10 minutes
Q3 Budget Update
Mark Baker
10 minutes
Update of activies of Financial Operations &
Business Solutions Office
Brigid Lever
PCI-DSS compliance
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Identify plans to achieve compliance
Can still obtain hardcopy card data EXCEPT CVV/CVC
Consider all processing options – receipting manual
Do not STORE hardcopy
DOI network scanning
nabTransact options
Treat card data like cash/cheques or card itself
OCR
Issues:
• Internal process flow
• Hardware reliability
• Consistency and quality of actual OCR
FMIS planning
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Current V8.8 unsupported by end of 2011
9.1 is latest – 8 years life
6 of Go8 now on PeopleSoft Financials
Future Oracle directions – Fusion
HCM and Campus Solutions “dis-integrating”
Longer term enterprise applications strategy required
Upgrade scope and plan by end of 2010, for 2011 project
No significant new features identified
Will consider opportunities for process efficiencies
Receipting Project
• Mapped all College and DOI receipting processes
• Identified main issues and recommendations
Next steps:
• Map remaining divisional receipting
• Final report – findings and recommendations
• Main recommendations:
• Document all receipting options
• Develop web receipting and shopping cart tool
• Evaluate/implement new nab options
Other Operational
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Debt management
Vendors
Travelex 24/7
Policy updates
Bank reconciliation
Annual Financial Statements
31 December 2010
Linda Puah
Forum Content
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Legislative Overview
Financial Reporting Requirements
What is required of each Business Unit
Property, Plant & Equipment, Impairment
Cashflow, Income, Expenditure, Overstated Debts
Commitments, Contingencies, Management Rep
Year End Journals and Timetable
Other Matters
Legislative Overview
• Dept Of Finance and Deregulation Guidelines- Finance
Minister’s Orders
• DEEWR Guidelines
• Australian Accounting Standards
• Audit Requirements
Financial Reporting Requirements
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Income Statement
Balance Sheet
Statement of Comprehensive Income
Statement of Cash Flows
Schedule of Commitments
Schedule of Asset Additions
Notes to the Financial Statements
Working papers, including AFS Pack Schedules support
the audited Financial Statements
Budget Unit Assistance Required
• AFS Packs – Summary Notes, Detailed Instructions and
AFS Schedules. All AFS Pack schedules are to be
returned intact by Friday, 7 January 2011 & with
supporting documentation if applicable. Please retain
copies.
• If NIL or N/A – please complete and mark NIL or N/A and
sign.
• Please ensure that the bulk of transactions relating to
2010 are processed within the first week in January i.e. by
7th January 2011.
Budget Unit Assistance Required (Cont’d)
• Senior finance officers at each Budget Unit may be
required to assist with queries in relation to the AFS pack
during January – February 2011.
• If processing staff are on leave, please arrange for
replacement staff to comply with the system deadlines.
Property, Plant & Equipment
• Asset and store stocktakes schedules to be returned by
Friday 3 Dec 2010.
• Processing of asset additions/transfers/disposals must be
actioned by 11 December 2010 to allow SMR time to
check that transactions have been actioned correctly.
• Please check location details/descriptions and update as
appropriate in ESP.
• Asset Reconciliations must be actioned as soon as
possible. Aim for clean reconciliations by end of Period 13.
• Accounts 9370, 9370V & 9370M – must be cleared to zero
Asset Impairment
• Schedule 1.4- review of asset impairment between
principle delegate and finance manager to ascertain
whether assets’ are impaired
• Schedule 1.5- if applicable, please list items (NBV >
$50,000) that are impaired
Cashflow, Income, Expenditure, Overstated
Debts
• Cashflow- Unreconciled amounts must be fully
investigated and write-off requests brought to the attention
of F&BS ASAP
• Prepaid Expenditure/Income in Advance- Ledger
descriptions from now to end of December must start with
2011 (if related to 2011)
• Accrued Expenditure/Accrued Income- Ledger
descriptions from 4 January 2011 must start with 2010 (if
related to 2010)
Cashflow, Income, Expenditure, Overstated
Debts (Cont’d)
• After 7 January 2011 and before 1 Feb 2011, advise SRLI
by email of unrecorded 2010 income or expenditure that
arises >$50,000.
• Please review all outstanding debts as at year end to
determine if any write-off is necessary
Commitments, Contingencies,
Management Rep
• Commitments/Contingencies – Schedule 9.1-9.6 and
Schedule 10 – must be supported by documentation.
• Management Rep- Schedule 12 must be signed.
Responsibility of the Delegate of each area to ensure that
the information provided in the schedules are accurate.
Year End Journals
• Year End Journals – Please note that Year End journals
processed from 4 to 7 January 2011 need to follow certain
rules.
• Please refer to the rules on the web. If assistance is
required, please contact SMR for assistance before
processing a year end journal.
Year End Timetable
• The year end timetable is detailed on Page 5 of the AFS
packs.
• Please check the final version of this timetable from the
WEB (AFS Section in F&BS).
Note: The timetable has been brought forward by 1 week for
the 2010 AFS.
Year End Timetable (Cont’d)
By 7 January 2011 (Friday), the following must be completed:
• AFS Packs must be signed and returned to Linda Puah
• Year end journals for all accruals
• Year end processing for all 2010 related AR Invoices and
AP vouchers
PLEASE ENSURE THIS TIMETABLE IS KEPT IN MIND
AND ACTIVITIES ARE SCHEDULED IN CONSULTATION
WITH THE TIMETABLE.
Other Matters
Encumbrances to be reviewed, unnecessary items deleted.
Clear purchase card transactions by year-end.
If you have any AFS related questions and/or other related
concerns please contact:
• Linda Puah (Linda.Puah@anu.edu.au, ext 58724)
• Melissa Orr (Melissa.Orr@anu.edu.au, ext 58763)
AFS Website:
http://info.anu.edu.au/fbs/Finance_Functions/Annual__Fi
nancial_Statements
Other Items (Cont’d)
Assets – New Staff, Asset Training, Asset Accounting
Training
http://info.anu.edu.au/fbs/Finance_Functions/__Assets/Index.
asp
Contact Melissa Orr (Melissa.Orr@anu.edu.au, ext 58763)
Transparent Cost of Research Update
Peter Shipp
Current Position
•Second staff survey completed
•906 responses of 1,334 (FTE 1,256.23) surveyed
•DIISR calculated
• Ave research effort per academic FTE 43%
• ACG effort as % of average research effort 45%
Current Position
•DIISR calculated
•Preferred Method outcome
• $145,891,229 * 0.45 = $65,651,053
OR $0.8579/$1.00 Cat 1 HERDC Income
•Alternate Method outcome
• $246,661,562 * 0.43 * 0.45 = $48,348,337
OR $0.6318/$1.00 Cat 1 HERDC Income
Current Position
•We are not comfortable with these results and will be
meeting with DIISR tomorrow to discuss and clarify further.
•Once finalised proposed direction is to:
• Establish TC at College/School level
• Advise the Vice-Chancellor of appropriate Indirect Cost
(Overhead) rate be applied for all research and
consultancy activities
Chart of Accounts Review Update
Departments and natural accounts
Peter Shipp
Chart of Accounts Review Update
Split into two components:
- Department review; and
- Natural accounts review
Department Review
Aim
- Remove (College) departments no longer in use
- Encourage accurate costing especially staff costs
Basis
- Non existent recurrent ledger
- Nil staff allocation
Department Review (Cont’d)
Status
- Awaiting final confirmation from Colleges
- Inactive departments will be removed by the end of
September 2010
Natural Accounts Review
Aim
- Agree upon a new set of natural accounts
- Simple and logical
- Non duplication of functions
Natural Accounts Review (Cont’d)
Direction (a glimpse)
- Create University wide agreed set of natural accounts
- Review adaptability of systems potentially affected by the
change
- System limitations are noted and resolutions proposed
- Adjustments to both the new natural accounts and systems
are made
- New set of natural accounts before December 2010.
Natural Accounts Review (Cont’d)
Current Status
- F&BS agreed set of accounts drafted with a 49% reduction
on Revenue, Expenditure, Asset, Liability and Equity
accounts.
- Draft accounts have been distributed to Colleges for review
- System reconciliations are being explored by F&BS’ BSO
with consultations with Central Divisions to take place soon.
- Progress is looking positive
Epilogue
Thank you in advance for your effort and contributions.
Questions?
Policy and Training Update
Amanda Walker
Policy Update
• F&BS is in the process of updating all of the policies and
procedures published on the official ANU policy site.
• All ANU employees are bound by the Code of Conduct,
• The Code of Conduct requires “ANU staff to act in
accordance with all ANU policies and procedures”
• Please feedback any issues you would like to see
specifically covered in a policy or procedure to Amanda
Walker by the middle of October
Training
• Standard suite of training published on F&BS website.
• Please email Finance_training@anu.edu.au to register
your interest in either completing one of the generic
course
• F&BS staff are also keen to work with local finance area
staff to develop and co-present customised training
courses. Please email Finance_training@anu.edu.au or
contact Amanda Walker to discuss further.
Tax Update
GST on sale of ‘Bricks’ and ‘Sole Traders’ Procedure
Callum Burke
Sale of ‘Bricks’ at Co-Op bookshop
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Generally the sale of course reading materials such as
‘Bricks’ through the Co-Op bookshop are considered GSTfree.
• Materials sold by a third party may still be GST-free to
students where the third party acts as our agent and;
• we (ANU) retain ownership of the materials being sold,
• the agent (Co-op) identify the student by provision of a
current student card,
• the course materials are listed on a booklist as being
required to undertake the course.
Reference < Paragraph 94, Goods and Services Tax Ruling (GSTR) 2001/1 ‘Goods and services tax:
supplies that are GST-free for tertiary educations courses’ >
Engaging ‘Sole Traders’ procedure
Just a reminder of the ‘Sole Traders’ procedure which was
revised earlier in the year.
• ANU’s preference should be to minimize our dealings
with individual contractors or ‘Sole Traders’.
• WHY? Potential risk that ‘Contractors’ may still be
viewed as ‘Employees’ under relevant legislation for:
- Taxation
- Superannuation
- Workers compensation
Engaging ‘Sole Traders’ procedure
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When engaging individuals you should refer to the Sole Traders
procedure.
< http://policies.anu.edu.au/procedures/sole_traders/procedure >
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When considering an arrangement with an individual you must
complete the Employee/Contractor Checklist
< http://info.anu.edu.au/fbs/assets/Finance_Functions/Business_Tax/anu_only/checklists/checklist.xls >
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The checklist considers the circumstances to decipher if the
arrangement is more in the nature of an employee or contractor
relationship.
• Delegate needs to sign off on the form.
• Where it is viewed that the arrangement is more in the nature of an
employee the individual should be engaged through HR practices.
2011 Budget Update
Mark Baker
2011 budget update
 All information will be published and distributed via the 2011 budget
website (http://info.anu.edu.au/fbs/Finance_Functions/2011-Budget-2)
 F&BS has published:
 The CFO memo requesting initial high level 2011 budget estimates
by 12 November 2010
 User documentation for the 2011 budget tool
 Summary of key dates for 2011
 Further information will be published in the coming weeks, including the
2011 budget guides that will include estimates for increases in utility
charges, fee overhead and capital deduction rates and CPI
recommendations.
 Recurrent budget advice sheets and supporting calculations for HECS,
CGS and research returns will again be distributed via the web site.
2011 budget update
2011 budget update
2011 budget update
 Budget meetings between the Office of the Vice-Chancellor and
local area Delegates are scheduled for 19 and 20 October 2010
for Colleges, and 22 October 2010 for DOI and Administration
Divisions.
 Recurrent budget advice sheets will be issued as soon as
possible after the Council meeting on 3 December 2010.
 Initial recurrent budgets are to be loaded into ESP Financials by
F&BS on or before Friday 21 January 2011.
 F&BS contacts are Tim Bateman and Amanda Walker.
Questions?
Q3 2010 budget reviews
 Meetings will be held on Monday 25 October, Tuesday 26 October and
Wednesday 27 October 2010. Initial timetable has been distributed and
is now being finalised.
 31 December 2010 financial projections and narrative report will need to
be prepared and submitted via email to F&BS by cob Monday 18 October
2010 (fmr@anu.edu.au). Hard copies signed by the appropriate delegate
can be provided at the meeting or sent via internal mail.
 An nVision based template will be circulated for R funds with prepopulated Period 9 data to assist with projecting full year values. S & Q
templates will seek high level projection information only.
 Trading areas will be requested to provide high level projection
information in P&L format.
 Expect all documentation will be circulated in the next week.
Questions?