Financial Operations and Systems Update Presentation Presented by Mark Preston, Director 14 May 2009 Darli

1. Financial Operations and Systems Update Presentation Presented by Mark Preston, Director 14 May 2009 Darlington Centre

2. Agenda • Overview of Financial Operations and Systems – Mark Preston (15 mins) • Financial Support Services Unit update – Uma Kumar (10 mins) • Draft Service Level Agreement (SLA) – Kevin Lacey (15 mins) • Expense reimbursement via Spendvision – Krishan Prasad (5 mins) • Procure to Pay (P2P) – Lean Lee (40 mins) • Billing to Cash (B2C) – Gemma Gill (5 mins) • Questions (15 mins)

3. Draft 7 Aug 08 The University of Sydney – Financial Operations and Systems Strategic Plan 2008-2011 System downtime is minimal Source system integrity checks pick up errors before users All management reports come from Hyperion Accurate & Reliable Information 2011 Targets Dec 2009 Milestones 2011 Outcomes Resourced and structured to deliver on promise (Mark Preston) SLA and reporting with all key stakeholders (Uma Kumar) P2P implemented in all major procurement locations Major reduction in billers and central credit and collection established (Colin Kueh and Gemma Gill) All assets managed on PeopleSoft (Luc Bhoyroo) Improved processes and functionality of Spendvision (Krishan Prasad) Master data concept implemented (Vicki Hatt) People Tools 8.49 upgraded (Lean Lee) Implemented Change Management plan (Krishan Prasad) Effective procurement and payments Effective and timely support to users Preferred option for PSU UNI Trusted source of information Provider of Choice Single point of contact Cross training of staff - no solo approach Consistency across all faculties No financial separation of billing/recoveries World Class Student Experience Eliminate redundant processes Reduced elapse times Consistent Systems & Processes Minimal feral systems Positive client satisfaction surveys FTE cost/transaction Optimal Automation & Self Service Top quartile efficiency and effectiveness metrics Cost per unit reduced Flexible and responsive to change in stakeholder business Enhancing University Economic Model Staff engagement >70% Staff retention >90% Succession planning Continuous learning and development Talented, Skilled & Engaged Team Pathways Build Team Capability & Culture Performance Monitoring & Improvement Rationalise & Invest In Systems Own The End To End Process Provide Single Source Of Truth Deliver Customer Centric Reporting Stakeholder Buy-in & Engagement Proactive Advice Provider

4. Rationalise & Invest In Systems We need to leverage utilisation and front end interaction with our core financial and reporting systems (PeopleSoft, Hyperion, Spendvision). Own The End To End Process To be able to deliver consistency, we need to control the end to end process to ensure a seamless user experience and improved process efficiency and effectiveness. Provide Single Source Of Truth Senior managers have access to minimal sources of information from which they can make timely and accurate decisions Deliver Customer Centric Reporting The reports have to be meaningful, timely and be valuable to the user so that they can make effective decisions. Stakeholder Buy-in & Engagement Stakeholders adoption and effective utilisation of the systems and processes is a critical success factor. FOS has to ensure it can manage these relationships and secure positive engagement in change. Proactive Advice Provider Our clients need to see us as a valuable resource to help them maximise their economic value. We in turn need to have anticipated their requirements and done the thinking and capacity build to be able to advise and respond. Performance Monitoring & Improvement We need to constantly monitor SLA performance and continue to improve service quality, speed and unit cost. Build Team Capability & Culture Our ability to deliver is based on the skills and commitment of our people. We therefore have to build a culture that actively supports ongoing professional development and a continuous improvement mind set. We also need to anticipate capacity and skill needs ahead of requirement and ensure we are prepared and able to deliver. Pathways

5. Role of Financial Support Services (FSS)Presentation to Faculty Finance TeamPresented by Uma Kumar14 May 2009

6. Mandate by Senate in 2006 to implement a Shared Service Model Key aspects of approach taken are: a) Data collection & analysis conducted, between May to September 2007 b) Findings from data analysis conducted split work into: • Financial Transactional Processes • Financial Non Transactional Processes • Human Resources Processes • Administration Processes • Student Services

7. Finance Transformation to Shared Services CURRENT FUTURE months ANALYSIS A2R Cluster Finance & Business Services School Faculty School Centre / Institute Central Financial Services Faculty SERVICES Central Financial Services Centre / Institute B2C P2P

8. 2.Supporting objectives are: a) Enhance quality of service b) Productive utilization of resources c) Ensure compliance & regulatory • Broad Objective include: a) Consolidation & consistency of Financial transactional processes b) Improve customer service c) Economies of scale through cost optimization

9. Targeting process excellence helps to define the Finance re-organisation WHO/LOCATION Cluster/Local Shared Services – Central/Local Local non-finance staff

10. IFTP - Project Scope Rollout Stage 1

11. Project Scope (Continued) Rollout Stage 2:

12. Financial Support Services – Staff Movements * :Karen Polyak has commenced leave without pay on 3 May 2009

13. Presented by Kevin Lacey, Consultant 14 May 2009 Service Level Agreement for Services from Financial Operations & Systems

14. Service Level Agreement “An agreement between the service provider and its customer quantifying the minimum acceptable service of the customer”

15. Key Aspects of Service Level Agreement • Supports Shared Service Model • Quantifies minimum service levels in Key Processes • Measurement of efficiency & effectiveness in outcomes of Key Processes • Two way measurement (end to end) & reporting on Key Processes • Review current processes to identify key aspects that can be improved • Enable more productive utilisation of resources

16. Service Level Agreements Overview

17. SLA Draft Overview Draft available online- http://www.finance.usyd.edu.au/docs/service_level_agreement.pdf

18. Service Level Agreement Status Report

19. Status Report continued

20. Spendvision Projects Presented by Krishan Prasad 14 May 2009

21. Spendvision Projects Updates • Employee Cash Claims Project - 1 October, 2008 • Spendvision Transaction Auto Coding Project - 1 October, 2008 • Spendvision Management Reporting Project - February, 2009 • Corporate Card PIN numbers –10th October 2008 • Corporate Card Audit –Current

22. Employee Cash Claims Project Travellers and Spendvision account holders must claim the travel and non-travel expenses through Spendvision only. Non-travellers who do not have Spendvision account may claim reimbursement through Petty Cash for amounts less than $25. Amounts over $25.00 must be claimed through Spendvision only.

23. Employee Cash Claims Project

24. Financial Operations and Systems UpdateProcure to Pay (P2P) Presentation by Lean Lee May 2009

25. Current Status of P2P Project Key Benefits Delivered External Purchase Requisition (EPR) Rollout to Financial Support Services (FSS) staff “To Be” P2P Process for EPR Walkthrough Quick System Demo Raise Requisition Receiving Agenda

26. Current Status of P2P Project as at 14 May 2009

27. PS PS PS P2P Solution Models after EPR Rollout 1. Pharmacology, MMB, ICT P2P -AOP / Electronic Requestor 2. F.O.S P2P for EPR Solution 3. Health Science P2P Buyer Solution AO-P Raise PS Purchase Requisition; PS receipting; assets Central Buyer Check and system approve EPRs >=$5000 Buyer Pre approved EPR Raise PS Purchase Requisition Electronic Workflow Requestors Requestors Requestors Requestors Requestors FSS Raise PS Purchase Requisition for EPR Requestors Electronic Requestors 16 Faculties, PSU’s, DVC’s, Institutions request for goods >=$5000 new EPR process

28. Standard P2P process, enabling sharing of FSS resources Electronically track progress of requisition from requisition to payment, eliminate manual tracking Resolve supplier queries swiftly Various reports available for tracking and analysis e.g. outstanding orders raised by yourself etc. The P2P Solution delivers key benefits………

29. P2P Solution delivers key benefits……… • Encourage adherence to the University Purchasing Policy • Eliminate activities that have no ‘value add’ e.g. no more paper requisitions to be completed and forwarded to Central Purchasing • Documents can be attached to requisition, either to be sent to the suppliers or for internal use only • User-friendly web-based access • Provide transactional integrity, reduce data entry with defaults, improve data accuracy • PO’s are emailed to suppliers where emails are available • Reduces workloads of users, no green-stamp – replaced by electronic receiving • Speedy end-to-end procure-to-pay • Visibility of purchase $$ commitments immediately

30. Access to the ‘best-in-class’ suppliers for goods/services Eliminates work on multiple quotations Central Buyer approval not required. Transact with suppliers via B2B connection Quickest method of ordering goods (Pharmacology experiences requisition to order cycle of 12 minutes) Minimal price variances eCatalouge suppliers are managed by Procurement Services Additional benefits if eCatalogue Solution is used……

31. Available eCatalogue Suppliers

32. Transparent to the academic community Least disruption to the departmental processes Brief introduction of FSS staff to the P2P solution Current EPR is the most inefficient requisitioning process for goods and services – slow and too much paper works Staff has direct reporting line to FOS Quick wins Reasons for EPR Replacement Rollout to FSS Staff instead of a full rollout

33. EPR Rollout Scope…..

34. 1. Internal Process Purchase requirements include: 1. The details of the product 2. Quantity required 3. Is the product a hazardous item 4. Where is the product to be delivered to 5. Does my faculty have any additional requirement that I need to address

35. EPR To-Be Process Overview

36. 2. Raise Requisition

37. Spend Analysis by Value for Faculties & ICT (excl Travel & Entertainment)

38. P2P Approval Model • FSS staff will be assigned the role of “Admin Officer – Purchasing“ (AOP) • Both AOP and Faculty Finance Manager are set up as electronic approvers • AOP acts as a gateway for approvals • If request has been pre-approved, AOP scans document and attaches to the requisition, then approves • If request has not been pre-approved: • AOP electronically approves requisition of value up to $5000 • AOP notifies Faculty Finance Manager to approve requisition above $5,000 but less than $10,001 • AOP prints requisition of value > $10,000 and seeks approval from Financial Delegate on paper, then attaches signed copy of requisition, and approves electronically • Faculty Finance Manager electronically approves requisition of value up to $10,000

39. 3. Distribute Purchase Order

40. Purchase Order Email to Requestor Subject: Purchase Order Generated: 0000075177 This is a courtesy email. Please DO NOT reply to this email. A Purchase Order has been created for your Requisition. Date: 01-APR-09 Requisition ID: 0000001644 Requisition Name: Template Purchase Order Number: 0000075177 Entered By: requestor03 - AOF Group 3 Supplier: SIGMA-ALDRICH PTY LTD Ln 1: 1.00 "Freight Charge" purchased at $22.00 Each (Inclusive of $2.00 GST) charged to 5010/24501/00000/ You can view the PeopleSoft inquiry page by following the link below. https://www.efinance-test.ucc.usyd.edu.au:8943/psp/F8900TST/EMPLOYEE/ERP/c/MANAGE_PURCHASE_ORDERS.PO_INQUIRY.?Page=PO_LINE_INQ&Mode=U&BUSINESS_UNIT=UNSYD&PO_ID=0000075177 Confidential Disclaimer: This electronic mail message and any attachments are confidential and may be privileged. Any unauthorised use of it is strictly prohibited. If you receive this email in error please delete the message and any attachments. Please consider the Environment before printing this email or attachment. This is an automated email, please do not respond.

41. 4. Receipt Purchase Order

42. 5. Pay Supplier

43. System Demo

44. Financial Operations & Systems UpdateOrder to Collect ProjectGeneral UpdatePresentation by Gemma Gill - Project Manager O2C14 May 2009

45. O2C Executive Summary – State of Play • “As-Is” Analysis Completed • Engineering (AMME & C&BE Schools) • Faculties of Health (Central Clinical School, Western CS, Northern CS, SUPAMAC, FMRC & Pathology) • Proposed Solution for ‘Billing & Collections’ • Optimize automation of workflows • Deploy centralized collections framework • Enhance AR Management Reporting (School level)

46. Project Life Cycle Phases Design Phase April May Jun Jul Aug Sept O2C AR Management Reporting Project Centralized Collection Workflow Proposals

47. O2C – Quick Win Summary Financial Operations and Systems

48. Questions ?

49. Contacts • Financial Operations and Systems – Mark Preston • Financial Support Services Unit update – Uma Kumar • Draft Service Level Agreement (SLA) – Kevin Lacey • Expense reimbursement via Spendvision – Krishan Prasad • Procure to Pay (P2P) – Lean Lee • Billing to Cash (B2C) – Gemma Gill

50. Thank You