Finance Forum

1. Finance Forum 27 August 2012

2. Welcome & Overview • David Sturgiss

3. Overview • Welcome and Overview David Sturgiss • F&BS ReviewDavid 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

4. F&BS Admin Review 2012 • David Sturgiss

5. 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

6. 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

7. 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

8. 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)

9. 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

10. 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

11. 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

12. QUESTIONS?

13. 2013 Budget Timetable • David Sturgiss & Melissa Abberton

14. 2013 Budget Timetable

15. 2013 Budget Timetable

16. F&BS Website Update • Jaya Ganasan

17. F&BS Website Update • New F&BS Website • V9.1 Upgrade

18. Fee Distribution • Charles Mazvidza

19. 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

20. Distribution Periods • Semester 1 – Period 6 (summer, semester 1 & autumn) • Semester 2 – Period 10 (winter & semester 2) • Spring – Period 13 • Final – Year End

21. 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

22. 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)

24. QUESTIONS?

25. AFS 2012 • Zachary Ong

26. AFS 2012 • Stocktake – start now • WIP – Review before year end • Building Valuation – Currently underway • 7000, 8000 and Asset Reconciliations

27. Tax Update • Luke Beckett

28. POP QUIZ TIME and opportunity for learning

29. Question 1 The ANU is exempt from income tax because: • The ATO likes the ANU • The ANU Act exempts the ANU from tax • The ANU is not exempt from income tax • The ANU has a private ruling

30. Question 2 GST applies to transactions that: • Are for consideration • Where a supply is made • Transaction is connected with Australia • All of the above

31. Question 3 GST applies to a grant where: • The contract has a clause about GST • There is a connection between the grant and activities the ANU must do • The grantor requires the ANU to report on how the funding is spent • It is a good idea

32. Question 4 A tax invoice contains: • The words “Tax Invoice” • Name, Address and ABN of the supplier • Indication of what the GST amount is • All of the above

33. Question 5 If a tax invoice is missing the ABN: • We must request a new tax invoice • Rely on the ABN provided on their website • Use the ABN on other documents for the same supply • Ignore it and claim the GST anyway

34. Question 6 Reimbursements to students mean: • GST cannot be claimed • If a tax invoice is provided, GST can be claimed • FBT will apply to any meal expenses • This is too hard, are you done yet?

35. Question 7 Fringe Benefits Tax applies when: • A staff member takes a ute home • Alcohol with a meal is provided to a travelling employee • A staff member receives a personal benefit paid for by the ANU • When a student gets their fees paid by the ANU

36. Question 8 An employee for FBT purposes is: • Uncertain and must be reviewed all the time • A student enrolled in an ANU course • A ANU business contact • A ANU staff member and their spouse

37. Question 9 An FBT exempt light meal is: • Sandwiches only • Is hard to define and will depend on the circumstances • A meal that costs less than $25 • Any meal that is take away

38. Question 10 When coding a light meal receipt, I should: • Code it to 5602 with description “Light Meal” • Code to 5602 and provide evidence on the paperwork why it is a light meal • Use the light meals stamp • Ask if I can come next time

39. Question 11 The FBT treatment of a Christmas Party is: • Exempt if it is held on ANU premises • Exempt if there is no alcohol provided • Partially exempt if only a few people have fun at the party • Fully subject to FBT

40. Question 12 If a staff member goes to the USA for 2 conferences with a week between: • The week between is treated as personal component so FBT applies to costs • The staff member should come home • The week between is treated as business • They should enjoy the hotel pool

41. THE END

42. RMAO Update • Donna Webster & Nguyen Dang

43. RMAO Update • Grant Management Framework – Preparation and Revision of Grant & Consultancy Budgets Review • 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

44. RMAO Update • Compliance with National Health & Medical Research Council Audit • 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

45. Discussion Groups • Reporting Needs

46. LAFHA - Working Group Update • Luke Beckett

47. LAFHA - Working Group Update • 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

48. 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

49. TM1 & Forecasting • Ben Lees

50. Summary • Data integration • Feedback • Forecasting • Salaries • Security • Forecasting