Finance Forum 29 th May 2014

1. Finance Forum 29th May 2014 Finance & Business Services

2. AGENDA • Introduction/F&BS Staffing Update (Peter Shipp, Deputy Director, CFFR) • Research Accounting – Training & HERDC (Luke Beckett, Mgr Research Accounting & Taxation) • Federal Budget Update (Melissa Abberton, AD MR&B) • AP Workflow – Tips & Tricks (Trevor Langtry, A/g AD Fin.Ops. & Systems) Finance & Business Services

3. AGENDA • University Financial Planning Model (Natasha Murphy, Project Manager SIG) • Research Accounting – Costing & Pricing Update (Maria Davern, Program Mgr. RSD) • Accounting Standards – Technical Update (Rachelle Conry, Senior Accountant MR&B) • General Question Time Finance & Business Services

4. F&BS Organisational Structure Finance & Business Services

5. Finance Forum29 May 2014 2014 FEDERAL BUDGET UPDATE

6. THE BIG TICKET ITEMS • DEREGULATED FEES FOR COMMONWEALTH SPONSORED PLACES • CHANGES TO INDEXATION • RTS AND THE CO-CONTRIBUTION • ARC EFFICIENCY DIVIDEND

7. DEREGULATION Main Proposals: • Universities may charge fees above the current HECS caps from 1 January 2016. • CGS cluster rates will be cut from 1January 2016 by circa 20% but this will vary across clusters. • The number of Clusters will reduce from 8 to 5 tiers. • Scholarship Scheme will be introduced • Grandfathering arrangements will apply. • FEE- HELP will continue but will be amended.

8. CGS • CGS cluster rates will be cut from 1January 2016 by circa 20% but in reailty this will vary across clusters. • Clusters will reduce from 8 to 5 tiers. • Some clusters will lead to reduced student contribution under the proposed model: • Humanities – 10% • Mathematics – 29% • Clinical Psychology & Foreign Languages – 4% • The majority of clusters lead to an increase in student contributions however some significantly • Social Sciences – 59% • Communications – 46% • Environmental Studies – 107% !!!!!

9. SCHOLARSHIP SCHEME • $1 in every $5 (20%) of additional deregulated revenue will be used to fund Commonwealth Equity and Access Scholarships • Scholarship schemes will be awarded and managed by the University

10. GRANDFATHERING

11. GRANDFATHERING

12. FEE- HELP • Fee HELP will continue to be made available so there will continue to be no upfront fee payments • However arrangements will be amended: • Income thresholds to start repayment of HELP debt will reduce from $53k to $51k from the 2016/17 The repayment rate will reduce from 4% at this band to 2% on a sliding scale • Indexation of outstanding HELP debt will change from June 2014 • Rate will change from CPI, currently 2.9% to 10year Commonwealth Bond Yield, currently 3.8% but capped at 6%

13. OTHER CHANGES • HECS/HELP benefit to support specific priority areas will cease from 2015-16 • CGS being extended to Diploma, Sub Bachelor and Associate degrees – no rates yet but will be below Bachelor Levels • Lifetime borrowing for Fee Help and VET Help has ceased • FEE-HELP loan fee on fee paying UG course removed • VET FEE-HELP loan fee for higher level vocational courses removed • CGS to be extended to TEQSA certified private providers • Relocation Scholarship Assistance for students relocating within and between major cities removed • Removing Grandfathering for Student start-Up scholarship recipients

14. WHAT DOES IT ALL MEAN

15. CHANGES TO INDEXATION • Basis for calculating the rate of indexation on Commonwealth revenues will change from1 January 2016 • Currently based on HEGI but will move to CPI • HEGI in 2015 will be 1.79%, using CPI in 2015 would have indexed revenues 2.9%. • Affected revenues: • NIF • HECS CGS • Commonwealth Scholarships • Research Block Grant Schemes • ARC

16. RESEARCH TRAINING SCHEME • RTS reduced for 2015/16 and will reduced $173.7M over 3 years  • Sector wide 10% effect. • RTS students to be charged a contribution at $1700 low cost courses, $3900 high cost course per EFTS • Unclear how these two proposals will intersect

17. ARC EFFICIENCY DIVIDEND • 3.25% Efficiency Divided on all ARC administered funding from 2015/16 • Current impact estimated at 3.5% of 81M approximately $2.9M for ANU

18. OTHER RESEARCH RELATED IMPACTS • HC Coombs Policy Funding Ceased - $6.4M over 4 years (1.6M in 2014/15) • Establishment of Medical Research Future Fund on 1st Jan 2015. The divided, Net Interest on the Capital, estimated at $276.2M over 3 years from 1st July 2015 to fund research including through NHMRC. • Research funding of $3.3M for digitisation of Indigenous Cultural Resources

19. OTHER RESEARCH RELATED IMPACTS • Additional $150m NCRIS funding – 1 year only • Boost to Dementia Research Funding – $200m including $26m through ARC • Cessation of ARENA • NICTA to move to a self funding model by mid 2016

20. OTHER RESEARCH RELATED IMPACTS • Rural Development Corporation’s will be given additional $100m over 4 years to fund research in partnership with RDC’s • Continuation of Future Fellowships for mid-career researchers – $139.5m • Amalgamating the National Environmental Research Program and Australian Climate Change Science Program to form a new national environmental Science Program – reduction of $21.7m – impacts to be determined

21. OTHER IMPACTS • Higher Education Reward Funding ceased • Higher Education Participation Program – funds are to be reduced by $51.3m over 4 years • 300 additional general practitioner places – yet to understand the terms and if ANU is eligible • Impact of DFAT funding cuts • NRAS program to cease

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23. AP Workflow – Tips & Tricks Erin Clements & Trevor Langtry 29 May 2014 Finance & Business Services

24. Foreign Currency Processing • Can be confusing • Invoice currency & Payment currency • Need to check • Tip & Technique http://fbs.anu.edu.au/__documents/tips_and_techniques/accounts-payable-workflow/2014_tip_siw_foreign_currency.pdf Finance & Business Services

25. Work Flow Actions • PushBack – Always comes back to the person who pushed it back - even if you change the business contact or delegate • Restart – resets each of the steps – delegate, business contact, etc. • Deny – equivalent to putting it in the bin • Reassign – a single step not the whole process around the team • Step not routed can change Business Contact/Delegate without restart • Intsert Additional Steps – key is to save after insert • Start New Path – use instead of insert so steps can be complated in parrallel rather than sequentially http://fbs.anu.edu.au/__documents/tips_and_techniques/accounts-payable-workflow/2014_tip_siw_workflow_actions.pdf Finance & Business Services

26. Monitoring Workflow Finance & Business Services

27. Monitoring Workflow Finance & Business Services

28. Monitoring Workflow Finance & Business Services

29. Monitoring Workflow http://fbs.anu.edu.au/__documents/tips_and_techniques/accounts-payable-workflow/2014_tip_siw_monitoring_workflow.pdf Finance & Business Services

30. Checking Of Defaulted Info • From Vendor • From OCR Process • Some review process by F&BS Staff • Vendor • Invoice No. • Invoice Date • Invoice Amount • GST Amount • Foreign Currency codes – Invoice and Payment Finance & Business Services

31. Stats & Turn Around Times • For 2014 – Average times per step Finance & Business Services

32. Stats & Turn Around Times Invoices Paid on-time (trade vendors only) • Progressed from really bad to bad • Key contributor is the 19.8 days from invoice date to being scanned • Encourage Vendors to send invoice to invoice.workflow@anu.edu.au Finance & Business Services

33. Stats & Turn Around Times F&BS Turnaround Times • Aim at < 3 Days – 2014 average 0.8 • Vendor Maintenance can slow down process Finance & Business Services

34. Duplicate Invoice Checking • Yes it checks for duplicate invoice • Where - Vendor ID, Invoice Number and Invoice Amount is the same • Getting occurrences where business areas are sending the invoice in multiple times • Encourage vendor to send the invoice to - invoice.workflow@anu.edu.au Finance & Business Services

35. Team Maintenance • Responsibility of respective areas • Contact you relevant College/Admin Finance Manager Finance & Business Services

36. Voucher Create • Don’t forget to create the voucher once the workflow process has completed • We monitor and remind but it does slow down the process Finance & Business Services

37. Why is the voucher not paid • Credits • How to Check Finance & Business Services

38. Staff on Leave • Be Proactive or reassign Finance & Business Services

39. Collaborative E-Mail • Updated Tip & Technique – http://fbs.anu.edu.au/__documents/tips_and_techniques/accounts-payable-workflow/2013_quickref_collaborativeapprovals.pdf • There are constraints • Restrict use Finance & Business Services

40. ANU Financial Planning Model ProjectNatasha Murphy, Project Manager SIG Finance & Business Services

41. Project purpose….. • to improve efficiency and effectiveness of the current systems for financial planning and budgeting : • deliver increased data integrity levels; • implementation of automated business processes; • accessibility and transparency of the information to a wide range of relevant staff; and • flexibility for growth in the functionality of the business model and technical support tool. Finance & Business Services

42. Finance & Business Services

43. Finance & Business Services

44. Costing & Pricing Budget (CPB) Tool ProjectMaria Davern, Program Manager RSD Finance & Business Services

45. Background • CPB Tool is being developed as an outcome of the Grant Management Framework – Preparation and Revision of Grant & Consultancy Budgets Working Group Review (January 2013). • Tool has been commissioned by the DVC (Research) and Director, Research Services. • Tool will support our researchers and professional staff at application phase for externally funded research. • CPB Policy and Procedure (draft) is under consideration by Executive that establish principles and a formal cost recovery standard to improve consistency, transparency and accountability. Finance & Business Services

46. Objectives of Costing & Pricing Budget Tool • To capture accurate costing and pricing budget data for externally funded research in accord with external and internal compliance requirements. • Enabling full cost estimation (direct + indirect), and to improve cost recovery, for externally funded research. • The storage and presentation of budgets for approval and price presentation. • Enabling interoperability with relevant enterprise systems. • Establishing efficient and effective workflow for improved business process management. • Producing accurate reporting and analytics. Finance & Business Services

47. Present State – Costing & Pricing Budgets Finance & Business Services

48. Current State – Costing & Pricing Budgets(cont) Finance & Business Services

49. Approach & Progress • Agile approach to communication and collaboration has been adopted to ensure that the project progresses at a consistent pace through development of the product with opportunities for refinement following input from users. • A prototype will be developed and socialised • Project Plan and Governance arrangements in place • High level requirements near completion. • Seven requirements gathering workshops involving seven colleges and a group of School Managers completed across the University. Finance & Business Services

50. Governance Finance & Business Services