Chart of Accounts Phase 1 Diane Croxford Finance Division

1. Chart of Accounts Phase 1 Diane Croxford Finance Division

2. Agenda • Objectives for Today • Background to Chart of Accounts – Phase 1 • What we have done • What’s next? • Q&A

3. Objectives for Today • Review of CoA Phase 1 / Background of Project • Results of Phase 1 / What we have done • How it will be implemented • Documents available • CoA Website • What’s next / what does it mean for you? • Q&A

4. Agenda • Objectives for Today • Background to Chart of Accounts – Phase 1 • What we have done • What’s next? • Q&A

5. What we heard • Large volume of accounts, many with similar/indistinguishable descriptions • Many PeopleSoft account descriptions are unclear or confusing • No further description in codified document to provide explanation of account usage • Multiple accounting manuals in use as users have created their own to fill gaps Account names & descriptions • Lack of clarity on use of specific accounts such as contractors, contract services • Lack of clarity on accounting rules for internal transfers, cost recoveries.. Specific accounting guidelines • What is the process for getting new account opened? • Who do I contact? / Who do I ask for assistance? • Who are communications sent to? Process clarity & communication • Current configuration does not allow for multiple fund streams against one project • Rollup of accounts to categories different in PeopleSoft and FIMs • Cleanup of old projects, departments and funds long overdue • Accounts structure does not allow all user to capture information to the detail they require Structural issues Do these themes ring true? Is anything surprising? Is there anything else you would have expected to see? Note: excludes user issues raised that are covered by other workstreams or proposed workstreams (e.g. Roles and accountabilities; account process issues, project accounting)

6. “Chartfields” Revenue Business Unit Expenses Accounts Departments Funds Projects Program Class B/Sheet Context: our initial focus is easy to implement ‘quick hits’ in the expense accounts used by faculties (To be reviewed as part of aligning ledgers with 2010 budget model) Internal Focus of initial quick hits exercise Further analysis proposed for Q3 2009 to: • Clarify rules for internal transfers • Investigate options for providing additional granularity where needed by faculties External Faculties & Divisions Used By Financial Control Lower priority, as ‘quick hit’ type refinements could be managed by users as part of business as usual We propose making recommendations for straightforward clean up activities to leverage the methodology used for the quick hits exercise Treasury (Not in scope of quick hits exercise)

7. We are also exploring how the accounts structure can be adapted to give users a greater degree of granularity Preliminary assessment of options * Taking into account interfaces/reports/forms that may need to be updated, communications and training requirements etc. 7

8. Four categories of account code issues addressed in quick hits Not used Duplicates Account name and description Lack of clear ‘business’ rules • Expense accounts have not been used for > 3 years • Multiple account codes for same type of expense • Many account names are misleading, too subjective, or lack specificity • There is no common descriptive guide to provide further clarity • Different interpretations / lack of clear guidelines for: • Consultants v contractors • Contractors v contract services • Hire Vs Lease • Equipment Exp v asset purchase Issue: Implication: • Adds complexity at front end as users search through multiple accounts • Inconsistent use of account codes impacts reporting and comparability • Contributes to volume of posting errors, requiring additional resource to analyse and recode • Frustrating for front end users • Include information in Guidelines Document • Recommendations to make specific accounts inactive • Recommendations of preferred account to use; others to become inactive • Line by line proposals for: • Clearer account names (to be updated in G/L) • Additional descriptions (to be available on intranet) Approach: 8

9. Agenda • Objectives for Today • Background to Chart of Accounts – Phase 1 • What we have done • What’s next? • Q&A

10. What are the changes? Details How Other Accounts Not Used • 16 Accounts • Accounts will made inactive in NS Financials. • Accounts not used for 2 – 3 yrs Account Name Changes • 72 Accounts • Account Name will be amended in NS Financials • Clearer account name & detailed description will improve clarity & consistency of expense allocation • Redirects will be renamed in NS Financials • Expense currently allocated to “redundant” accounts to be more accurately allocated. • These accounts will be “inactivated” in NS Financial under a phased approach • Historical Data to these accounts will remain unchanged. • Staff Expenses and Purchase Card Module will be updated in line with changes. • Bigger impact on day to day processes & procedures already in place in finance Redundant Account & Redirects • 45 Accounts New Accounts • Account Number to be amended to documents ( NEW ) • 13 Accounts • Use of these accounts will continue to be reviewed so to ensure actual use is in line with intended use. • 14 Accounts Accounts Usage Under Review **80 accounts remained unchanged **See Handout for summary list of specific account changes

11. What are the biggest changes? Redundant Accounts - 14 Redirects - 31 Other • Accounts have been used for a number of different expense types, where more appropriate accounts exist. • Accounts Used in lieu of suitable alternative due to many accounts, poor account names, lack of descriptions etc • Identify expenses currently allocated to these accounts and identity alternative account • Consumables Type 2 – 9 • NB Consumables Type 1 – renamed to consumables – other remains in the interim as “catchall” account while continued improvements occur. • User Feedback is important to ensure we have identified all applicable expense types and they are catered for in the descriptions and/or specific accounts • Very similar accounts that are essentially the same type or nature of expense. • User Feedback is important to ensure we have identified all applicable expense types and they are catered for in the descriptions and/or accounts • Clear separation of Contractors( people costs) and Contract Services – Account 6101 • Redirect Rep & Maint Expenditure from Consumables & Contract Services • Expand Operating Lease to four accounts. Equip, Property, MV & Other • New accounts to enhance clarity and consistency in expense allocation and other requirements of the university ie procurement

12. Chart of Accounts Documents What? Expense Reference Guide – Detailed Descriptions Quick Reference Guide CofA Guidelines Document • Accounts Summarized by Expense Category • Descriptions for each account of type or nature of expense expected to be allocated against account • Examples included in description as well as exclusions where appropriate to enhance clarity • Inactive & Redirected Accounts are included in first release of document. • Some Descriptions to be updated ie travel p/diem p/tax rate • One Page A4 Poster • Summary of available accounts by expense category • What is the chart of accounts and how is it used at UNSW • Definition of each chartfield and who is the owner/manager • Provide Guidance on specific accounts • Review & Feedback • Links to forms as well as “Go to” contacts Where? • All documents available on Finance Website • All documents will be updated regularly for changes & amendments Next? • What expense types specific to you may be missing? • Where do allocate them currently? • Do we need a new account? Or to amend description on existing account?

13. Chart of Accounts of the Finance Website www.fin.unsw.edu.au

14. Agenda • Objectives for Today • Background to Chart of Accounts – Phase 1 • What we have done • What’s next? • Q&A

15. Feedback Whats Next? • Reviewing, Refining & Updating the CofA is an ongoing exercise and it will continue to change & evolve to meet the needs of the University • User Feedback will enhance this and ensure all user needs are met • Form available on Finance Website / Chart of Accounts • Review Redundant & Redirected Accounts and provide feedback / questions on allocation

16. Agenda • Objectives for Today • Background to Chart of Accounts – Phase 1 • What we have done • What’s next? • Q&A

17. Q & A