Finance Forum

1. Finance Forum 30 November 2011

2. Welcome Peter Shipp

3. Green Funds (Carbon Fund & Green Loan)Making the most of Green Funds Wayne Ford Associate Director – Facilities Planning Facilities and Services Divisions

4. Environmental Management Plan Targets Reduce energy and neutralise greenhouse gas emissions : 10% by 2010 15% by 2012 20% by 2015 35% by 2020 Reduce total water use ; 30% by 2015 50% by 2020 Remove potable water from landscape irrigation : 50% by 2012 100% by 2015 Reduce material waste by ; Reducing waste to landfill 40% by 2015 and 70% by 2020

5. Financial Challenges - Electricity Projected Electricity Costs • Without implementing mitigating strategies, annual costs of electricity will increase from $8.5m to over $23m by 2020; a material impost to operating budget. Annual cost of electricity will increase almost 2.8× by 2020

6. Financial Challenges - Gas • Projected Gas Costs • Based on commodity price forecast from 2008 White Paper • Gas price will also increase, however at a lower rate than that of grid supplied electricity Annual cost of natural gas will double over the next decade

7. Challenge of growth

8. Invest wisely to achieve substantial energy savings, or face cost increases of up to $17m per year by 2020 While continuing to deliver world-class research and teaching facilities ANU HOW? GREEN FUND CHALLENGE • Green funds – Carbon Reduction Fund and the Green Loan Fund. • Strategic investment in ANU infrastructure, more than external off-sets • Backed up by all-of ANU engagement in sustainability practices

9. Differentiating the funds

10. Types of projects Upgrading insulation Shading or double-glazing Harvesting green energy Improving efficiency Using recycled water Saving water

11. Application Process • Application form • Available at http://www.anu.edu.au/anugreen • Applications welcome any time • Assessment of large projects staged to ensure competitive process • Assistance available • greenfund@anu.edu.au • F&S Sustainability Office • Approval • College Manager/Director

12. Assessment Criteria • Benefit to whole-of-ANU • Fair attribution • Outcome certainty • Communications outcomes • Cost-effectiveness • Congruence with ANU 2020

13. Decision Process • Green Fund Management Board • Chaired by Director F&S; • Representation from F&BS & Colleges (Law, Asia Pacific) & one position unfilled; • Review and approve applications for both funds • Assessment • Assessment by Sustainability Office • Final decision by the Board

14. QUESTIONS?

15. Application form in full

21. Finance Refresh Upgrade Program Peter Rietdyk

22. FMIS Refresh Program Phase 1 (April 2011- June 2012) • Application & Infrastructure Upgrade • TM1 Budgeting Stage 1 (formerly iMIS Planning) • Purchase 2 Payment (P2P) process review • Reporting Structures Review • Receipting Upgrade • OCR rollout

23. Application upgrade • Peoplesoft upgrade from v8.8 to v9.1 • Previously released in 2003 (v8.8) • New version will include access to support, updates, patches & security fixes • Current progress: Analysis, Design, Build, Test, Implement, Close Down • Status: Green

24. TM1 Budgeting Stage 1 • Management and analytic tool that will leverage IBM TM1 product • Stage 1 delivered expense budgeting functionality • Current progress: Stage 1 delivered • Current progress: Post delivery clean-up

25. Purchase 2 Pay (P2P) • Review purchase to payment for ANU transactions • Aligned with Peoplesoft v9.1 functionality • Current progress: On hold until February

26. Receipting Upgrade • Upgrade of OneStop product for receipting and cashiering. Processing online payments • Reporting via Peoplesoft, web functionality, .net, improved conferencing and portal access • Current progress: Deferred to July 2012 • Developing interim conference reporting functionality. Looking for skilled resource

27. Reporting Structures Review • Review possible changes Chart of Accounts/General Ledger (GL) interface • Backend of TM1 Budgeting • Current progress: No started

28. Optical Character Recognition (OCR) • Software to enable OCR supplier invoices & automation of Accounts Payable (AP) processing. • Current progress: Pilot, Analysis, Design, Build, Test, Implement, Close Down. • Status: Not started

29. Communication structures • Current structures: Status Reporting, meetings, management (escalation) structures. • Comms forum outcomes

30. Questions?

31. Ledger Integrity and“To capitalise or not to capitalise….” Melissa Abberton and Linda Puah

32. Ledger Integrity Statutory & Management Reporting

33. Ledger Integrity Processing Vouchers…… 5836 = Temp Agency Fees

34. Ledger Integrity Description = Agency Fees 5836 = Temp Agency Fees

35. Ledger Integrity 5317= Site Services-Electricity

36. Ledger Integrity Further investigation revealed that this is expense was for a consultancy! Levy for What? 5317= Site Services-Electricity

37. Ledger Integrity And its not just on the Expense Side….. What publication & how many? The natural account tells you this much……. 9325 = Sales – Publications and Print

38. Ledger Integrity And how to the journal……… 8984 = IntSales-Infrast/Indirect Costs What exactly is being transferred?

39. Ledger Integrity The long description for this journal is “Transfer expenditure to ensure costs are within budget guidelines from ANSTO”. Apart from being vague on which costs and for what, this is unlikely to hold up in audit? Whose airfare costs and to where and when?

40. Ledger Integrity SO WHY IS IT IMPORTANT? • AUDIT • MANAGEMENT DECISION MAKING • MATCHING • EXTERNAL REPORTING • EFFICIENCY • IT CAN AFFECT THE BOTTOM LINE

41. Ledger Integrity SOME KEY MESSAGES…… • Make the description countWHO, WHAT, WHERE & WHY • You don’t need to repeat the name of the natural account in your descriptionIT TAKES UP VALUABLE SPACE • If expensing equipment purchases always indicate the number of pieces purchased and finally………………….

42. Ledger Integrity SOME KEY MESSAGES…… RESPONSIBILITY AND ACCOUNTABILITY RESTS WITH THE APPROVER Which is why…… CREATING AND APPROVING YOUR OWN JOURNALS IS A NO-NO! AND THE POLICY SAYS SO: http://policies.anu.edu.au/policies/expenditure_approvals_policy/policy

43. To Capitalise or Not to Capitalise…… Literally a Million Dollar Question. Statutory & Management Reporting

44. Capitalisation Principles What is Capitalisation? 44

45. The General ANU Principles: PROPERTY PLANT & EQUIPMENT: If a piece of PPE is < $5,000 expense BUILDINGS: Capitalise all new buildings REFURBISHMENTS If it costs< $20,000 expense

46. So what would you do with this……… An irrigation system at one of the University’s remote sites had broken down and was replaced.

47. Answer…… IT DEPENDS • What is the cost? • What was it replaced with?

48. Capitalisation of Buildings All new Buildings Capital improvements e.g. air conditioning, fire control Refurbishment/Rehabilitation which extends useful life of the building So What to Capitalise? 48

49. And what does a “piece” of equipment mean….. An audio and DVC conferencing system was purchased and installed in one of the University’s buildings. There were a number of components ranging in price form $300 to $8,500

50. Answer…… IT DEPENDS • Do the pieces of equipment operate independently of each other?