Finance Service Delivery Model Approved Approach

1. Finance Service Delivery Model Approved Approach Presented by: Peter Enlund November 2006

2. Agenda • Meeting Purpose • Status Update • Overview of the Approved Finance Service Delivery Model Approach • What this means? • Next steps RMIT University

3. Meeting Purpose • Meeting participants - Identified staff who are involved in performing finance tasks across the University. • To provide an overview of the endorsed Finance Service Delivery Model and next steps. RMIT University

4. Status Update The Finance Service Delivery Model proposed for implementation commencing January 2007 was presented to and endorsed by: • Major Projects Committee on 17 October 2006 (Forwarded to VCE on 26 October 2006). RMIT University

5. Finance Service Delivery Model: Objectives • to define the RMIT Finance Service Delivery Framework for implementation in 2007 • to improve service delivery • reduce costs through more effective deployment of staff RMIT University

6. Criteria • eliminate duplication and overlap of services • strengthen of key functional capability • standardise processes and practices • concentration of services and processes • deliver improved service and efficiencies • it does not detract from the delivery of the business of the University RMIT University

7. Information Gathering • Portfolios and Service Centres in August 2006 to identify who currently performs finance tasks • Accounts Payable and Purchasing Project • Processes identified through earlier work completed by the Major Change Group RMIT University

8. Some observations: • Low level of “trust” • untimely entry of information • unnecessary and inefficient offline processes prior to the point of data entry. • Data in the General Ledger has absolute integrity and is subject to sound internal controls. • Little use of standard GL based reports resulting in • duplication of finance activities • ad hoc report construction • incorrect data being used for decision making • high level of manual tasks. RMIT University

9. Some observations: • an unwarranted degree of control or data over every aspect of the business, • control activities in too much detail • a legacy of a low level of trust in the responsiveness of central finance, from historical experiences and/or perceptions. • Data entry into Accounts Payable is prompt • processing within 2 days after it is received RMIT University

10. Some observations: Current RMIT Finance Operations • normal business practice for routine tasks • current structure is a legacy • we continually have to train people in tasks. • must be sustainable and delivered with robust quality controls. • a lack of standardisation in processes due to local and historical ways of working. RMIT University

11. New Ways of Working • build and maintain trust and confidence in the services delivered from all areas of the university • stop time and effort expended on unnecessary activities based on compliance to policy rather than for genuine business benefit. • build and maintain appropriately skilled finance staff base • clarity in functional alignment and reporting lines • collaborative environment encouraged and strengthened. • develop and document clear processes and procedures. RMIT University

12. Staff Summary In August 2006: • 209 staff were identified as performing some finance-related activity. • Only about 20% are located in Financial Services RMIT University

13. Business Size Summary RMIT University

14. Transaction Volumes RMIT University

15. Development of the Model • Service Delivery levels correspond with what is required to complete the task • level of skill • local vs central knowledge / input / ownership. • Each level dedicated to delivering efficient services directly to its customers, whether internal or external RMIT University

16. Finance operates as a strategic partner with business units. • People issues and Finance practices are integrated into business planning and operations management. Level 3: Strategic • Finance provides a range of specialist Finance services and products to employees and managers. • Finance provides solutions for complex Finance issues. Level 2a & 2b: Consultative • Finance is focused on providing standard services using systematic and consistent procedures. • Finance provides routine and ad hoc transaction processing. Level 1a & 1b: Operational Range of value • Employees initiate Finance action. • Employees provide preliminary information and data to Finance. Level 0: Self Service Service Delivery Levels RMIT University

17. Service Delivery Levels cont… • clear definition of delivery points for all Finance processes and process steps • identification of process / task accountability • service levels efficiently tracked and managed • identification of subject matter experts. • greater focus on value-adding activities • by eliminating unnecessary steps, • duplication and overlap. RMIT University

18. Proposed Service Delivery Model Approach Overview • Level 0 preparations by Financial services to enable self service at local level. Level 1 Main Stream Finance tasks are performed by Financial Services • Financial Services start fulfilling Level 0 and Level 1 Main Stream Finance tasks required with less resources. • Savings accrued and reported • Finance service delivery will meet and change expectations of key stakeholders e.g. HOS / unit heads etc. This will help build trust in the new ways of working. RMIT University

19. For Finance-Titled staff: Executive Director Financial Services reviews the current resource allocations and the remaining work for finance positions described in Point 1 above within their respective work areas. i. work undertaken elsewhere ii. remaining work RMIT University

20. For Non-Finance titled staff: Local area managers / executive review current resource allocations and remaining work for bundled positions within their respective work areas i. work undertaken elsewhere ii. remaining work • Decisions on an individual basis may be required for non-finance titled roles if they are currently predominantly performing finance tasks. • Current position titles not necessarily accurate reflection of position. RMIT University

21. Single Processing Mode Level 0 and Level 1 processes will include: • Six staff • cross trained and able to deliver consistent services in a sustainable, timely and accurate manner. • provides clear accountability • single point of reference for staff and vendors. • central point of feedback enabling learning from what’s working and areas needing improvement. • City and Bundoora. RMIT University

22. Some Supporting Initiatives • Per diems should decrease credit card and staff reimbursements • Single processing mode for research billing • Reduce the number of cab charge accounts • Create an interface between Library and SAP • eliminate current duplicate data entry • Casual Pay and Contractor process • Travel RMIT University

23. Underpinning mechanisms • agreed turn around times • clear process documentation and understanding of roles and responsibilities • system tracking options • clear finance functional reporting lines • regular, relevant finance communication groups (academic and service centres) as appropriate. • Finance Newsletter RMIT University

24. Proposed Performance Measures • Payment by due date – long term target of 90% • Number of telegraphic transfers and electronic payments • Number of exception payments RMIT University

25. Key Changes: Processes • Level 0 enabled for self-service and Level 1 performed at a single processing mode • including data entry and data processing. • part of Financial Services and will be physically located at City and Bundoora RMIT University

26. Key Changes: Reporting Lines / Budget • Change to Finance functional reporting lines • all staff with Finance titles (bundled roles and pure finance roles) will now report within FS • Decisions on an individual basis may be required for non-finance titled roles if they are currently predominantly performing finance tasks. • No change for those in ‘bundled roles’ who perform some finance tasks e.g. administrative officers • these will be reviewed at a later stage. • Budget for all finance-titled roles (bundled and pure) will shift to FS RMIT University

27. Key Changes: Finance Titled Roles • Pure finance roles will initially continue in their current positions, with changes to tasks because of the changes in main stream finance processes. • Bundled finance-titled roles will initially continue in their current positions, with changes to tasks resulting from the change in processing for main stream finance processes and will no longer undertake non-finance work. RMIT University

28. Key Changes: Non-Finance Titled Roles • non-finance titled roles will initially continue in their current positions • no longer undertake finance tasks. RMIT University

29. Key Changes: All Roles • All roles mentioned will be reviewed to ensure that capacity is best utilised. • may involve some changes in role descriptions where the new work does not match current PD • there will be consideration of consolidating work where it is of benefit to the University. RMIT University

30. New Job Opportunities 4 or 5 new finance positions • Finance Officer, Purchasing (Bundoora) • Finance Officers, Accounts Payable (City) • Research Contracts - Coordinator (City) • Portfolio Finance Manager – non academic • General staff transition guidelines will be applied • Positions aimed to be filled by December 2006. RMIT University

31. Next Steps Detailed Planning is currently underway. RMIT University

32. Next Steps RMIT University

33. Next Steps RMIT University

34. Further updates • RMIT Updates • Finance Newsletter • www.rmit.edu.au/fs/service • Specific communication as applicable RMIT University

35. Feedback / Queries RMIT University