Welcome ANU Finance & Business Service Staff to 2017 ANU Finance Forum September 2017
Welcome 2
Georgina McKenzie, CA, MBA, GAICD Acting Financial Controller Corporate Finance & Financial Reporting Finance & Business Services
LEARN CONNECT ANU Finance Forum APPLY CHANGE 4
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ICE BREAKER One thing in common 6
Systems Update Jeremy Hill Trevor Langtry 7
FSS initiatives Shorter term: Compliance reporting Aged transactions workflow, advances, debtors, assets Pcard & Payables transaction review spend, FBT Consolidated invoice integration Debtor reporting Banking tender Longer term: AR invoicing Payables/workflow Vendors simplification 8
FSS initiatives ServiceNow Ticketing system Emails loaded Duplication an issue Further simplification work in progress Workflow capability Move to log all jobs in ServiceNow Reporting 9
Payables dashboard reports 10
Receivables Dashboard reports 11
Concur - update Issues Reporting Reimbursements Expenditure policy review Key configurations tested Implementation Advances To be scheduled 12
Concur - Receipt Upload Mobile App ExpenseIt app Concur app Emailing receipts@expenseit.com receipts@concur.com Desktop- direct receipt upload
Concur - ExpenseIt Mobile App
Concur - Uploaded Receipts
Concur - Email Reminders Cardholders: 1 st of the month Purchase card transactions are ready for acquittal 10 th of the month Reminder to acquit outstanding purchase card transactions 20 th of the month Non-compliance reminder for uncleared transactions > 45 days old 25 th of the month Manual advice card limit will be reset to $1 Approvers: Pending approval Expense Claim over 15 days
Morning Tea 17
Endowment update Finance Forum, September 2017 Iain Murray Manager (Advancement Services) Alumni Relations and Philanthropy
There has been a lot happening
Feedback from our stakeholders We need better access to endowment financial data and purpose information There are too many endowments in the shop-front Governance of endowments should be more transparent
We ve heard you Policy and Procedure Improved financial reporting Endowment Review Project Accessible documentation Meetings with local areas
Policy and procedure Endowment for Excellence Term Fund Not invested in the LTIP Expended within specified timeframe; or Building towards a specific fundraising goal Perpetual Fund Invested in the LTIP Minimum establishment threshold Maximum budget determined by Annual Distributable Amount
Endowment Review Project Every endowment fund is being reviewed to align with the new Policy and Procedure Benefits: Greater clarity on purpose and available ADA for existing endowments Support for stronger donor relationships through greater transparency Improved access to information on the history and supported activities of endowments
Opportunity to maximise impact
Improved financial reporting Endowments have had poor visibility in College and Schoollevel financial reporting Perpetual and term funds have different reporting needs Historically, endowment General Ledger Codes have been used to designate both purpose (eg scholarship or prize) and preservation (eg perpetual or non-perpetual) AR&P is in consultation with F&BS on a solution to provide meaningful College and School level financial reporting for endowments
Tips for transparency 9212 (Donations & Bequests) income must be placed in E ledger The Endowment for Excellence (E ledger) is the designated vehicle for the acceptance and governance of philanthropic funds. Non-philanthropic monies should not be placed in the E ledger Transfers of University monies from other ledgers are not considered philanthropic unless an approved, formal agreement to match gifts exists. Endowment expenditure should not occur using 7000 codes Expenditure should be charged directly to E Funds. This maintains transparency and helps us to explain the positive impacts of giving. If in doubt we can help.
Questions? Please get in touch with us anytime: Endowment@anu.edu.au
Soft Skills Resilience Communication Deliverables (Team Work) 28
Tools to Building Effectiveness & Resilience Left Brain Logical - Effectiveness Communication (Emails) Use a plan Weekly -Covey Framework Long view Brian Tracey Right Brian Refresh & Recharge Mindfulness/Gratitude Breath Movement
Effectiveness - Communication
Email Top Tips Purpose Clear subject line Think about who sending to Clear action -want by when Length is important (view box) Use Reply all sparingly Proof read (tip there is Add the email address last) Always Answer email If time restricted just acknowledge & use follow up function to remind you Never reply in haste draft, safe and comeback later Nothing is confidential SIGNATURE Absolutely critical Name Position Phone Number See handout in your show bag work instruction for setting up auto signature in email Take the Challenge Always consider the option of phoning instead
Planning Would you tell me, please, which way I ought to go from here Asked Alice That depends a good deal on where you want to get to said the Cheshire Cat Lewis Carol Alice Adventure in Wonderland
Planning Short term Result Some Emails/Calls Pop in questions Trivia often pleasant distractions Majority of work: Transactional Activities The Zone Value Added Process Improvement Recognition Prevention
Planning 2 tools How do we move from Distraction & Delusion to THE ZONE? 2 TEMPLATE IN YOU SHOW BAG Weekly -Covey Framework Long view Brian Tracey
My Weekly Planner Weekly Events Finance Forum, CAP Exec Role Objectives CAP Executive Strategic Planning Day 8.00 CAP Exec Meeting Responses (Grant O/H) 8.30 New RBG 9.00 College Audit 9.30 College PDRs 10.00 Functional Budget for Functional Managers 10.30 Management Uni-form & Survey 11.00 Manage People Work load - Delegate (ask for help) 11.30 PDR - New Skills & Development 12.00 Leave Planning 12.30 Budget Income & CAPGen O/H Recovery 1.00 Salary & CAPGen Functional budgets 1.30 TM1 support 2.00 Grants Process Improvement 2.30 Qtly Reviews 3.00 Reporting 3.30 F&BS - Governance Sharpen the Saw Grants -Audits, Statement & ARC Process 4.00 Endowement Changes 4.30 COE Reporting New FMR - Account Structure Year End Health Career Plan Networking & Mentor Mon 35
Refresh & Recharge 36
Mindfulness/Gratitude What is this and why should I try it? Simple strategy for mastering the habit of becoming more present to each moment without wishing it were different Breath, Focus/Rewiring & Movement
The Power of the Breathe Focused Relaxing Breathing exercise will help Relax the mind Increase concentration Increase energy Relax muscle tension You don t have to do it for hours, in a lotus pose or standing on your head just short focused slow deep breaths Anchor it to task Waiting at the traffic lights Standing at the photocopier Waiting for the kettle to boil
Mindfulness in a minute Notice, Shift, and Rewire Your Brain Each moment offers the opportunity to notice our current state, to shift our attention and rewire Notice: become aware of where your attention is directed Shift: redirect your attention to the present moment. Gently bring your attention to any object of focus. Rewire: take just 15 to 30 seconds to really savour this experience and to reinforce the shift you just made Anchor this task First sip of a cup of tea Waiting in que/stop at traffic lights By Eric Langshur and Nate Klemp PhD December 12, 2016
Mobility is the immerging health epidemic Movement & Forest Bath Estimates 6.3hrs or more per day sitting at desk Walking enhances your immune system A 3pm power pace has been scientifically proven to be more effective than chocolate pick me up Increase productivity and creativity by up to 60%
Show Bags In your Show bag you will find Though provoking Chatterbox List of mindfulness/gratitude activities On the logical side, you will find Template of the Covey Planning tools Brian Tracey 14 Day Planning Challenge Some time saver tips Instruction on setting up email signature
Let us leave you with this You tube - How to train your monkey mind. https://www.youtube.com/watch?v=4pkrhh-bkpk
FINANCE FORUM STRATEGIC FINANCE INITIATIVES Session 8 13 September 2017 Melissa Abberton
Session Overview Introduction Strategic Finance Initiatives at ANU What are they? Why a specific role? How does it work? Over to You to Tell me What to Do.. Breakout session Working Groups to brainstorm ideas for things you think need to be implemented, changed or can be improved to make finance function better 13 September 2017 44
Strategic Finance Initiatives at ANU 13 September 2017 45
Strategic Finance Initiatives at ANU What are they Essentially projects to make finance function more efficiently and effectively at the ANU Why a specific role? get out of the weeds and away from BAU to focus on what needs to change and get it implemented Harness partner resources to help spread the word 13 September 2017 46
Strategic Finance Initiatives at ANU (cont.) How does it work? Tasked with identifying and implementing initiatives that will have a transformational impact on the finance function at ANU Some projects have already been identified for me, both big and small. Not going it alone 13 September 2017 47
Strategic Finance Initiatives at ANU (cont.) 13 September 2017 48
Strategic Finance Initiatives at ANU (cont.) 13 September 2017 49
Over to You to Tell me What to Do.. Breakout session in table groups Brainstorm ideas for things you think need to be implemented, changed or can be improved to make finance function better Collate your ideas and come back to the next forum with a plan for a project 13 September 2017 50
Improvement Brainstorm Essentially consider 5 steps: 1. Name it - Identify the Improvement 2. The Now State - Outline the current state of the problem or situation and why isn t it working 3. Definition of Awesome How do we want it to be 4. Next Target Condition in x number of weeks what do you think should have changed 5. First Steps 3 ideas that describe first/next actions 13 September 2017 51
Improvement Brainstorm 13 September 2017 52
Next Steps 13 September 2017 53
QUESTIONS? 13 September 2017 54
MANDATORY REPORTING - AFS Finance Forum 13 September 2017 Georgina McKenzie, CA, MBA, GAICD Acting Financial Controller Corporate Finance & Financial Reporting Finance & Business Services
Corporate Finance & Financial Reporting Financial, Statutory Reporting Thin Thin Aung Finance Manager Research Accounting & Reporting Teresa Cadman Snr Finance Manger Research Investment Middle Office Vacant Investment Operations Assoc Insurance Arthur J Gallagher (AJG) Tax KPMG Heidi Luu Snr Financial Accountant Lorraine Piper Snr Financial Accountant Samata Dharmadhikari Asset Accountant Karen Yang Financial Accountant Catherine Dickens Financial Accountant Farzana Nasin Financial Accountant Khanh Hoang Assistant Financial Accountant 56
Mandatory Reporting Financial, Statutory Reporting Annual FS Annual FBT Return Annual National Rental Affordability Scheme Monthly BAS Dept of Education Financial Reporting Financial Contractual Obligations e.g. PBSA Research Accounting & Reporting ARC NHMRC HERDC Return US Federal Awards Audit (Commonly referred to as A133 R&D Audit) Other Contract & Grant Statements/Acquittals 57
NEW ACCOUNTING STANDARDS AASB 9 Financial Instruments AASB 15 Revenue from Contracts with Customers AASB 16 Leases AASB 1058 Income of Notfor-Profit Entities AASB 1059 Service Concession Arrangements: Grantors 58
AASB 15 Revenue from Contracts with Customers Mandatory from 1 January 2018 1 year extension for NFPs from 1 January 2019 Recognition of revenue in a manner that depicts the transfer of goods and services to customers at an amount that reflects the consideration the entity expects to be entitled to, in exchange for those goods or services. Basis for the Standard is a 5 Step model. 1. Identify the contract 2. Identify the Performance obligations 3. Determine the transaction price 4. Allocate the transaction price 5. Recognise Revenue 59
AASB 1058 Income of Not-for-Profit Entities Mandatory from 1 January 2019 Reflect the economic reality of NFP entity transactions that are not contracts with customers (as defined in AASB 15). NFPs will be able to recognise such grants or donations as income when the performance obligation has been fulfilled, and not when the revenue is received. The timing of income recognition depends on whether such a transaction gives rise to a liability or other performance obligation (a promise to transfer a good or service), or a contribution by owners, related to an asset (such as cash or another asset) received by an entity. 60
Currently AASB 1004 Contributions requires Grant / Contract Income to be recognised on a cash basis. Revenue is recognised as income when it is received and expenses when they are incurred. This commonly forces income recognition on day one despite the fact the entity is yet to fulfil its performance obligations. The new requirements represent a major change for the University and work is currently underway to navigate through the changes required and how to implement going forward. 61
ANU along with 11 other Universities have engaged Nexia Australia to assist in the application and common adoption of three new accounting standards (AASB15,16 and 1058) In addition to the review of contracts conducted by Nexia the ANU will also have to review contracts and agreements specific to the ANU against AASB 15 and 1058 to decide which standard applies. This work is currently being scoped. Changes will be required to systems and processes 62
AASB 9 Financial Instruments Mandatory from 1 January 2018 Aims to simplify financial instruments accounting Addresses issues from the GFC Significant changes in 3 areas: Classification & measurement Impairment Hedge Accounting ANU holds a significant Investment Portfolio EY will be engaged to assist the ANU to transition to the new standard A significant review of our holdings will be required Broader scope of assets to be considered for impairment If possible, early adoption in 2017 will be considered (if allowed by the Dept of Finance) 63
AASB 16 Leases Mandatory from 1 January 2019 Provides a clearer, more comparable picture of true financial exposure For Lessors - accounting remains largely unchanged For Lessees - Leases no longer classified as either operating leases or finance leases Right-of-use assets and lease liabilities will be recognised on the balance sheet In the cash flow statement, the total amount of cash paid will be separated into principal and interest Must be applied retrospectively to leases already in effect on the transition date, Data collection for Nexia review highlighted that the ANU does not maintain a central location for lease documentation 64
2017 Annual Financial Statements Key Draft Dates Oct 17 P10 Soft Close Dec 17 Interim Audit Commences Jan 18 Lead Sheets and Reconciliations Feb 18 AFS Audit commences Mar 18 Committee Reporting and Apr 18 - Council Sign Off Apr 18 Annual Report Print 65
FBT Update KPMG - Bridie Griffin & Patrick Langdon
Benefit Overview 2017 FBT Return Taxable Value Cars statutory formula $280,420 Cars operating cost method $2,808 Loans $441 Expense Payments $4,480 Housing $37,553 LAFHA $0 Property $0 Income tax exempt body $580,727 entertainment Residual $0 Total $906,429
Upcoming Changes Review of processes for collecting and confirming FBT return data Preparation of 2017 FBT return amendment Importance of coding transactions in Concur (e.g. meals whilst travelling/light meals/elaborate meals) Review of information available on the ANU website
HERDC, ARC & NHMRC - UPCOMING CHANGES Teresa Cadman, CA Senior Finance Manager Research Accounting & Reporting Finance & Business Services
HERDC: 2018 Specifications August 2017 - Department of Education and Training has released final 2018 HERDC Specifications (guidelines for reporting 2017 Data) Category Category 2 Category 3 Main Impacts New Subcategories: Own Purpose and Other New Subcategories: Private Sector and Government For Profit and Not-For-Profit Own Purpose and Other Category 4 Now reporting on a calendar year basis One-off transition arrangement applies income from 1.7.16-31.12.16 to be included in the 2017 calendar year return Next step establish task group to undertake work to implement these changes Existing grants: 560+ contracts to be reviewed Move GLCs to new Fund Attributes (update in both ARIES and ES Financials) New Grants use new fund attributes 70
HERDC: Category 1 Australian Competitive Grant Income 2016 & 2017 Data Income from those schemes that are listed on the Australian Competitive Grants Register (ACGR) 2018 Data Moving to a self-assessment model for the ACGR as it allows universities to assess and code income once (at the time the grant is awarded). Five year transition to a selfassessment process 71
HERDC: Category 2 Other Public sector R&D income 2016 Data 2017 Data Commonwealth Government (Non Category 1) Income from General or Untied Funding All Other 2.1 Commonwealth Government (Non Category 1) 2.1.1 Commonwealth (own purpose) 2.1.2 Commonwealth (other) State Government (competitive and non-competitive) Local Government (competitive and non-competitive) 2.2 State / Territory / Local 2.2.1 State / Territory / Local (own purpose) 2.2.2 State / Territory / Local (Other) 72
HERDC: Category 3 Industry and other R&D income 2016 Data 2017 Data Australian: Contracts Grants Donations, bequests and foundations HDR fees for domestic students International: International A: Competitive, Peer-reviewed research grant income International B: Other Income International C: HDR fees for international students 3.1 Australian 3.1.1 Private Sector 3.1.1.1 For Profit Organisations 3.1.1.2 Not-for-Profit Organisations 3.1.2 Philanthropy 3.2 International 3.2.1 Private Sector 3.2.1.1 For Profit Organisations 3.2.1.2 Not-for-Profit Organisations 3.2.2 Philanthropy 3.2.3 International government 3.2.3.1 Government (own purpose) 3.2.3.2 Government (other) 73
HERDC: Category 4 CRC R&D income 2016 Data 2017 Data Research income derived from Australian Government grants to CRCs 4.1 R&D income derived from Australian government grants to CRCs Research income derived from non- HEP members of CRCs Research income derived from external parties contributing to CRCs 4.2 R&D income derived from private industry participants of CRCs 4.3 R&D income derived from other sources 74
ARC: New Funding Rules August 2017 - ARC has released new funding rules ( 2017 Edition ) for each funding scheme it administers http://www.arc.gov.au/funding-rules Funding rules issued separately for Discovery Programs and Linkage Programs 2017 Edition applies to: Funding commencing in 2018 Australian Laureate Fellowships Future Fellowships Linkage Projects (funding applied for in 2018) Funding commencing in 2019 Discovery Projects Discovery Early Career Researcher Award Discovery Indigenous Linkage Infrastructure, Equipment and Facilities 75
ARC: New Funding Rules (cont d) New Term : Active Project Assessment Date The date on which Active Project eligibility will be considered A Project cannot commence until all CIs, PIs, Awardees and Fellows meet the eligibility criteria in these Funding Rules. i.e. even if you can apply for more than allowed in the Project limits, you cannot start any Project until you meet the limits, and all eligibility criteria in the Funding Rules. Example: Discovery Project You can apply for a DP19 while holding two DP16s with Project end dates prior to 1 July 2019. However, you cannot start the DP19 until at least one of the DP16s has been completed, one DP16 has been relinquished or your role on one DP16 has been relinquished in order to meet the limit of two Discovery Program Projects. Example: Linkage Projects You can apply for a LP18 from 1 July 2018 while holding four LP16s with Project end dates prior to 1 July 2019. However, you cannot start the LP18 until at least one of the LP16s has been completed, one has been relinquished or your role on one LP16 has been relinquished in order to meet the limit of four Linkage Program Projects (excluding LIEF). 76
ARC: Prior Round Funding Rules September 2016 - ARC released funding rules ( 2016 Edition ) Funding commencing in 2017 Australian Laureate Fellowships Future Fellowships Linkage Projects Funding commencing in 2018 Discovery Projects Discovery Early Career Researcher Award Discovery Indigenous Linkage Infrastructure, Equipment and Facilities Addition of provision for reasonable essential extraordinary costs to allow a researcher who is a carer, or who themselves require care or assistance, to undertake travel essential to the Project (A5.2.1) This could have FBT implications A5.1.7 The Administering Organisation is responsible for any and all financial and taxation implications associated with receiving funds. 77
ARC: 2016 End of Year Statements 619 statements lodged with ARC (ANU Led) 630 individual statements prepared 10 Consolidated Statements 361 currently accepted by ARC Externally Led 107 statements sent to Partner Universities ARC Centres of Excellence 2 ARC Future Fellowships 92 Australian Laureate Fellowships 19 DECRA 95 Discovery Indigenous 6 Discovery Projects 330 LIEF 9 Linkage Projects 66 Total ARC Statements (ANU Led) 619 78
NHMRC: 2016 End of Year Statements 80 statements lodged with NHMRC (ANU Led) 78 currently accepted by NHMRC Externally Led 30 statements sent to Partner Universities Career Development Fellowship 4 Centres of Research Excellence 2 Development Grants 1 Early Career Fellowships 13 European Union 1 NHMRC-ARC Dementia Research Development Fellowship 1 Partnership Projects 3 Postgraduate Scholarships 2 Project 43 Research Fellowship 9 TRIP Fellowships 1 Total NHMRC Statements (ANU Led) 80 79
ARC / NHMRC: New Process in 2016 Prior Years Research Accounting (RA) responsible for initially preparing all Statements 2016 Colleges responsible for initially preparing ARC (ANU Led) Discovery Projects (DP) - 330 RA responsible for initially preparing all other Statements - 517 Other ARC (ANU Led) -300; ARC (Externally Led) -107 NHMRC (ANU Led) - 80; NHMRC (Externally Led) -30 Logic: improve timeliness of getting DP statements to CI s 2016 Feedback: Challenges - New process / responsibilities for Colleges; new RA team Conflicting priorities / deliverables - Colleges to ensure DP applications are completed early on to allow sufficient time to complete Statements Overall - Colleges have communicated they are happy with change 2017 Recommendation: continue with same split of responsibilities 80
ARC / NHMRC: How can we improve 2017? General Process Improvements: Improve overall efficiency of process Early planning before year end Removal of manual processes where possible Eliminate duplication of work Standardisation of calculations / work papers Consistency with treatment of ineligible expenses Complete closed statements midyear where possible Other Examples include: CI meetings Colleges aim to only have one meeting with CI to review and certify all statements (RA to complete statements by CI) Shared Funding - RA to correspond with Partner Universities for year end Income and Expenditure Statements Early Review - Colleges to review expenditure reports from ES Financials to facilitate a high level review of ineligible expenditure prior to 31.12.17. Forward planning - for projects due to end 31.12.17 Colleges to review unspent balances prior to 31.12.17. Training to be held in November 2017 Topic Preparation of 2017 ARC and NHMRC End of Year Statements 81
Thank you & Don t forget your show bag 82