Finance Forum

1. Finance Forum 30 May 2012

2. Welcome & Overview • David Sturgiss Finance and Business Services

3. Overview • Welcome and Overview David Sturgiss • OCR and Proposed AP Workflow Jaya Ganasan • University Banking Arrangements Post NAB Jaya Ganasan • Finance System Upgrade Update Eric Li & Leo Lai • Life After Finance & Business Services Melissa Orr • Afternoon tea • Assets Cost Reconciliation Lee Jnani • Recap of ARC Reporting Lorraine Piper • Changes to Living Away From Home Allowances Luke Beckett • Project Updates Vanessa Quigley • Risk Management & Audit Office Yoon-Jin Park

4. OCR and Proposed AP Workflow • Jaya Ganasan

5. Reason For Upgrade • University currently running on V8.8. Oracle Extended support for PeopleSoft Solutions 8.8 ended in Dec 2011. • This means that Oracle is not obliged to provide development support in the form of new features and fixes including tax and regulatory updates to customers running 8.8 after that time. • University is also unable to benefit from the many enhancements incorporated in the latest release – version 9.1

6. Project Status • Upgrade project commenced in April 2011. • Upgrade process involves both technical and functional staff performing a number of “tests – fixes – retests” cycles to ensure that the system and financial processes are performing as they should on the new version. • Critical (risk mitigation) decision was made to upgrade current processes without change, and implement new functionality as follow-on projects. • Scheduled for Completion and Go Live in July 2012 as originally planned.

7. Follow On/Concurrent Project - Review all financial business processes Objective - to streamline and remove duplicative and redundant activities - reduction / elimination of paper based forms. - standardization of financial business processes across the University. - migration of paper based processes (eg travel approvals) to on line systems. - achieve administrative efficiencies through standardization and automation.

8. Specific Improvement Opportunities • Accounts Payable Invoice to Pay Automation • Accounts Receivable and Miscellaneous Revenue Collection • Procurement Processes • Travel Request and Approval Process and Travel Related Expense Management • Corporate Card Expenses Policy Compliance and Acquittal Process Improvements • Elimination of earlier modifications by adopting new functionality

9. Accounts Payable Invoice to Pay Automation – Sept 2012 Use of Optical Character Recognition Scanning and Peoplesoft Workflow will achieve the following outcomes: - Reduction/elimination of data entry of Invoice information • Email approval of scanned invoices • Digital storage of invoice records (elimination of paper storage) • Improved turnaround times from receipt to payment of invoices • Complete transparency of AP work process flow

10. Accounts Receivable and Miscellaneous Revenue Collection – Dec 2012 Upgrade to One Stop Cash Receipting system and new functionality in Peoplesoft will provide: - opportunities to reduce cash collection points throughout campus through introduction of web based options. - on line approval of invoices and credit notes - conversion of paper forms to electronic versions enabling on-line approvals.

11. Procurement Processes Initiatives – Sept to June 2013 • Integration of Chemical Inventory System with Peoplesoft Procurement Module to eliminate duplicate processes. • Explore E- catalogue solution to enable fast search by product and “side-by-side” product comparison to drive best value purchasing. • Mandatory requirement to raise Purchase Orders for procurement exceeding $5,000 to: • Simplify invoice processing • Improve financial reporting and budget management • Ensure compliance with procurement due diligence requirements

12. Travel Request and Approval Process and Travel Related Expense Management – March 2013 • Integrated on line system for Travel Requests and Approval. • Capture of all Travel Related expenses by Travel Event. • Automatic general ledger account coding (based on expense category).

13. Corporate Card Expenses Policy Compliance and Acquittal Process Improvements – March 2013 • On line system for Corporate Card Expenditure Approval. • Automatic general ledger account coding (based on expense category). • Email alerts and automatic escalation for unresolved transactions. • On-line forms and system controls to eliminate manual forms and assist in tax compliance.

14. Elimination of earlier modifications by adopting new functionality The following modifications will be redundant with the adoption of new functionality in Peoplesoft Financials • Corporate Card acquittal “bolt-on” and related AP/HR integration. • Accounts Payable Voucher approval modifications. (New on-line approval workflow defined).

15. Joint approach with Colleges to improve systems • We need University wide systems • The Peoplesoft system will drive the automation & workflow • Sometimes a College will need extra steps in a process (but rarely) • College Finance Staff/ Managers/Academics to be part of the team determining the best way forward

16. QUESTIONS ?

17. University Banking Arrangements Post NAB • Jaya Ganasan

18. Finance System Upgrade Update • Eric Li & Leo Lai

19. From Now to Go live

20. Feedbacks from End User Testing • Changes on background colour & navigation • Tips & technique documentation required for specific system changes • No special training is required

21. Major System Differences • AP – Payment Comments

22. Major System Differences • Inventory – Changes on MSR

23. Encumbrances Conversion • Encumbrance balances will start from scratch • No impacts on historical balances/reports • All open Reqs and POs will be set to ‘Complete’ • Open POs over $10,000 will be re-entered centrally • All unapproved encumbrance Jrnls will be deleted

24. General Information • All personal favourites will be migrated into v9.1 • Run Control IDs are required to be setup • The log in to ES Financials will be redirected to new page

25. Conversion Strategy • AP– all Vchrs must be approved and Match Exceptions must be overridden • PCard Vchrs – must be approved • AM – Add/Update access will be removed after Accounting Period 7 (8th July), no asset transactions should be added or modified • All Reqs must be built into POs otherwise cancelled • IV – all MSRs, Picking Plans and Counting Events must be completed otherwise cancelled • AR–all Invoices must be approved otherwise cancelled – all Cancelled Invoices will not be converted • GL - all Journals must be approved otherwise deleted

26. Draft Go-Live Timetable 17th July (Tuesday) • All ‘Add’ access will be removed 19th July (Thursday) • All system access will be removed • All unapproved Bills, Vouchers and Journals will be deleted • For any unapproved PCard vouchers, the charges will go to “5890 R Areas ‘510’ Dept or Cardholders Dept” 23rd July (Monday) • Restricted access may be given to F&BS 24th July (Tuesday) • System is opened to all finance areas

27. Planned Post Implementation Training • Information session • Drop-in session will be run twice a day • Normal help-desk support

28. THE END

29. Cost Reconciliation of Capitalised Assets • Lee Jnani

30. Outline • Asset definition • Asset classes • Asset capitalisation procedure • Asset life cycle • Accounting system • Cost reconciliation business process

31. Accounting Definition of Asset AASB 116: “Recognise the cost of an item or property, plant, equipment as an asset if, and only if: • It is probable that future economic benefits associated with the item, beyond the year of purchase, will flow to the entity; and • The cost of the item can be measured reliably.”

32. Asset Classes Plant, Property & Equipment Land, Building, Infrastructure Cash & Cash Equivalents Intangibles Financial Assets Non Financial Assets

33. PPE Asset Categories Research Equipment Computer Equipment Musical Equipment Teaching Equipment Other Equipment PPE Assets Motor Vehicles Artworks

34. Asset Recognition Threshold Capitalised Asset Non-Capitalised Asset Unit Price (GST exclusive) <$5,000 Unit Price (GST exclusive) >/= $5,000 Capitalised as PPE in Balance Sheet Expensed in Income Statement Account 31xx Account 51xx Recorded in Asset Management System Recorded in Portable & Attractive Register

35. Life Cycle of A Capitalised Asset • Acquisition • Purchasing • Capitalisation • Retirement • Asset Disposal • Management • Depreciation • Asset Transfer • Cost adjustment • Re-classification

36. Life Cycle of a Non-Capitalised Asset

37. ESP Financials and Subsidiary Ledgers Accounts Payable General Ledger Asset Management System Accounts Receivable

38. How to Record Financial Events on Capitalised Assets? – PeopleSoft (ESP FIN) General Ledger (GL) Asset Management System (AMS)

39. Purpose of Cost Reconciliation on Capitalised Assets • For Any Asset Class • For Any Charging Code GL AMS Accumulated Depreciation Accumulated Depreciation Cost Cost Higher Risk

40. P5 Asset Cost Reconciliation Shows…

41. Consequences of the Imbalance

42. How to Clear the Imbalance? Asset Reconciliation advice sheet Summary by Budget Unit • Asset Class 1 – Variance 1 • Asset Class 2 – Variance 2 • Asset Class 3 – Variance 3 Detailed Analysis by Asset Class • Charging Code A – Variance A • Charging Code B – Variance B • Charging Code C – Variance C Task Table • Recommended Actions

43. ESP Version 9… • Training programs • Feedback welcome • Acknowledgement

44. Finance Forum Afternoon Tea Break

45. Life After Finance & Business Services • Melissa Orr

46. Journey from the dark side…… The story of one person’s life after F&BS into the “real world”

47. F&BS positives • Mentoring from CA/CPAs • Exposure to University wide financial transactions/processes • Assets, SPF • Understanding of importance of F&BS deadlines and tasks • FBT, AFS

48. College benefits • Working with other areas – HR, students, research office • You are the finance expert – your Dean/GM rely on your advice • Working with academics (a benefit?) but makes life interesting

49. The future • For career advancement, consider all finance positions – at F&BS, Colleges, service divisions • Get away from an “us and them” mentality • Projects for finance professionals to work together

50. Recap of ARC Reporting • Lorraine Piper