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Finance Forum. 30 November 2011. Welcome. Peter Shipp. Green Funds (Carbon Fund & Green Loan) Making the most of Green Funds. Wayne Ford Associate Director – Facilities Planning Facilities and Services Divisions. Environmental Management Plan Targets.

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Finance forum

Finance Forum

30 November 2011


Welcome
Welcome

Peter Shipp


Green funds carbon fund green loan making the most of green funds

Green Funds (Carbon Fund & Green Loan)Making the most of Green Funds

Wayne Ford

Associate Director – Facilities Planning

Facilities and Services Divisions


Environmental management plan targets
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


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


  • 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



Green fund challenge

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


Differentiating the funds cost increases of up to $17m per year by 2020


Types of projects
Types of projects cost increases of up to $17m per year by 2020

Upgrading insulation

Shading or double-glazing

Harvesting green energy

Improving efficiency

Using recycled water

Saving water


Application process
Application Process cost increases of up to $17m per year by 2020

  • 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

    • [email protected]

    • F&S Sustainability Office

  • Approval

    • College Manager/Director


Assessment criteria
Assessment Criteria cost increases of up to $17m per year by 2020

  • Benefit to whole-of-ANU

  • Fair attribution

  • Outcome certainty

  • Communications outcomes

  • Cost-effectiveness

  • Congruence with ANU 2020


Decision process
Decision Process cost increases of up to $17m per year by 2020

  • 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


Questions
QUESTIONS? cost increases of up to $17m per year by 2020


Application form in full cost increases of up to $17m per year by 2020


Finance refresh upgrade program
Finance Refresh Upgrade Program cost increases of up to $17m per year by 2020

Peter Rietdyk


Fmis refresh program phase 1 april 2011 june 2012
FMIS Refresh Program cost increases of up to $17m per year by 2020 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


Application upgrade
Application upgrade cost increases of up to $17m per year by 2020

  • 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


Tm1 budgeting stage 1
TM1 Budgeting Stage 1 cost increases of up to $17m per year by 2020

  • 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


Purchase 2 pay p2p
Purchase 2 Pay (P2P) cost increases of up to $17m per year by 2020

  • Review purchase to payment for ANU transactions

  • Aligned with Peoplesoft v9.1 functionality

  • Current progress: On hold until February


Receipting upgrade
Receipting Upgrade cost increases of up to $17m per year by 2020

  • 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


Reporting structures review
Reporting Structures Review cost increases of up to $17m per year by 2020

  • Review possible changes Chart of Accounts/General Ledger (GL) interface

  • Backend of TM1 Budgeting

  • Current progress: No started


Optical character recognition ocr
Optical Character Recognition (OCR) cost increases of up to $17m per year by 2020

  • 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


Communication structures
Communication structures cost increases of up to $17m per year by 2020

  • Current structures: Status Reporting, meetings, management (escalation) structures.

  • Comms forum outcomes


Questions1
Questions? cost increases of up to $17m per year by 2020


Ledger integrity and to capitalise or not to capitalise
Ledger Integrity and cost increases of up to $17m per year by 2020 “To capitalise or not to capitalise….”

Melissa Abberton and Linda Puah


Statutory management reporting

Ledger Integrity cost increases of up to $17m per year by 2020

Statutory & Management Reporting


Processing vouchers

Ledger Integrity cost increases of up to $17m per year by 2020

Processing Vouchers……

5836 = Temp Agency Fees


Ledger Integrity cost increases of up to $17m per year by 2020

Description = Agency Fees

5836 = Temp Agency Fees


Ledger Integrity cost increases of up to $17m per year by 2020

5317=

Site Services-Electricity


Ledger Integrity cost increases of up to $17m per year by 2020

Further investigation revealed that this is expense was for a consultancy!

Levy for What?

5317=

Site Services-Electricity


And its not just on the expense side

Ledger Integrity cost increases of up to $17m per year by 2020

And its not just on the Expense Side…..

What publication & how many?

The natural account tells you this much…….

9325 = Sales – Publications and Print


And how to the journal

Ledger Integrity cost increases of up to $17m per year by 2020

And how to the journal………

8984 =

IntSales-Infrast/Indirect Costs

What exactly is being transferred?


Ledger Integrity cost increases of up to $17m per year by 2020

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?


So why is it important

Ledger Integrity cost increases of up to $17m per year by 2020

SO WHY IS IT IMPORTANT?

  • AUDIT

  • MANAGEMENT DECISION MAKING

  • MATCHING

  • EXTERNAL REPORTING

  • EFFICIENCY

  • IT CAN AFFECT THE BOTTOM LINE


Some key messages

Ledger Integrity cost increases of up to $17m per year by 2020

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………………….


Some key messages1

Ledger Integrity cost increases of up to $17m per year by 2020

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


Statutory management reporting1

To Capitalise or Not to Capitalise…… cost increases of up to $17m per year by 2020

Literally a Million Dollar Question.

Statutory & Management Reporting


Capitalisation principles
Capitalisation Principles cost increases of up to $17m per year by 2020

What is Capitalisation?

44


The general anu principles
The General ANU Principles: cost increases of up to $17m per year by 2020

PROPERTY PLANT & EQUIPMENT:

If a piece of PPE is < $5,000 expense

BUILDINGS:

Capitalise all new buildings

REFURBISHMENTS

If it costs< $20,000 expense


So what would you do with this
So what would you do with this……… cost increases of up to $17m per year by 2020

An irrigation system at one of the University’s remote sites had broken down and was replaced.


Answer
Answer…… cost increases of up to $17m per year by 2020

IT DEPENDS

  • What is the cost?

  • What was it replaced with?


Capitalisation of buildings
Capitalisation of Buildings cost increases of up to $17m per year by 2020

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


And what does a piece of equipment mean
And what does a “piece” of equipment mean….. cost increases of up to $17m per year by 2020

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


Answer1
Answer…… cost increases of up to $17m per year by 2020

IT DEPENDS

  • Do the pieces of equipment operate independently of each other?


Capitalisation of equipment
Capitalisation of Equipment cost increases of up to $17m per year by 2020

NO: normal repairs and maintenance

What to Capitalise?

  • YES: Upgrade which prolongs useful life of asset

  • YES: New component which enhances functionality of asset

51


The most important message
The Most Important Message…….. cost increases of up to $17m per year by 2020

IF IN DOUBT

ASK

Please contact F&BS by emailing a detailed query to [email protected]


Special purpose funds
Special Purpose Funds cost increases of up to $17m per year by 2020

Lorraine Piper and Amanda Walker


Training
TRAINING cost increases of up to $17m per year by 2020

  • 2011 sessions offered covered following topics:

    HERDC

    ARC/NHMRC end of year reporting

    Joint Research/Finance Admin training

    Funds Provider Statements instructions available on SPF website

  • Details can be found at SPF website:

    http://info.anu.edu.au/fbs/About/spf


2011 end of year reports
2011 End-of-Year Reports cost increases of up to $17m per year by 2020

Timetable for distribution of ARC/NHMRC statements

  • Externally-led statements – late Jan-early Feb (need to be received by external institutions by 29 Feb 2012)

  • Centres of Excellence – due to need for consolidation of multiple statements – early Feb

  • Balance of ARC/NHMRC statements – early to late Feb


Eligible expenditure
ELIGIBLE EXPENDITURE cost increases of up to $17m per year by 2020

  • NHMRC

    Link on SPF website will go through to NHMRC website

  • Special attention needs to be given to 2011 statements for expenditure on travel, conference, subscriptions, equipment, hospitality/catering, memberships & administration costs

  • Unless requested in the budget/revised budget, costs will need to be removed from the project and funded from another source


Eligible expenditure1
ELIGIBLE EXPENDITURE cost increases of up to $17m per year by 2020

  • ARC

  • Special attention needs to be given to 2011 statements for expenditure on travel, conference, subscriptions, equipment, hospitality/catering, memberships & administration costs


Eligible expenditure2
ELIGIBLE EXPENDITURE cost increases of up to $17m per year by 2020

  • ARC continued

  • ANU is to provide basic facilities including, but not limited to:

    • Office accommodation

    • Workshop services

    • Standard reference materials

    • Computers (including laptops) and computing facilities

    • Office expenditure including photocopiers, phones, mail, internet services


Eligible expenditure3
ELIGIBLE EXPENDITURE cost increases of up to $17m per year by 2020

  • ARC

  • Ineligible expenditure is identified in the Funding Rules & Funding Agreement for the specific scheme and the year of award

  • Available on the ARC website

  • Documentation on salary shortfall calculations is currently being prepared on should be available on the SPF website prior to 2011 End-of-Year reports being distributed


Eligible expenditure4
ELIGIBLE EXPENDITURE cost increases of up to $17m per year by 2020

  • Non ARC/NHMRC funded projects

    • Eligible expenditure will be determined by the contractual requirements of any given project

    • Projects that have been awarded under the Competitive Grants Scheme list will frequently have Funding Guidelines associated with them. They form a part of the contractual requirement for that project.


A 133 audit
A-133 AUDIT cost increases of up to $17m per year by 2020

  • Compliance & financial audit of US Govt grants where ANU has spent $US 500K during the financial reporting year (2011)

  • Will require identification of relevant grants including those subcontracted through other institutions – prepared at University level

  • Samples tested will be taken across the University


A 133 audit1
A-133 AUDIT cost increases of up to $17m per year by 2020

  • To be conducted independently by qualified audit firm

  • Need to ensure that only eligible expenditure has been charged to the projects

  • Need to ensure that the contractual requirement to remit interest earnings to the US has been met


A 133 audit2
A-133 AUDIT cost increases of up to $17m per year by 2020

  • Need to ensure compliance with the funding body’s guidelines e.g. time sheets, use of US airlines for international travel, reporting requirements

  • US govt grant note will still be included in the ANU’s final accounts

  • Anticipated that the audit will take place during the first quarter of 2012


Q fund statements
Q Fund Statements cost increases of up to $17m per year by 2020

  • Research Office & SPF working towards integration of ARIES & ESP data for statistical purposes

  • Aim is for a one to one relationship between ARIES ID & GLC

  • Many older ARIES projects have been recorded in Discretionary Q funds as subprojects


Q fund statements1
Q Fund Statements cost increases of up to $17m per year by 2020

  • Current project being undertaken to close as many as possible ARIES records with project end dates prior to 1 April 2011

  • REMINDER: Costs related to contract-based Q funds should be reflected in those projects (including relevant salary costs). Once all costs have been applied to the project any balance (profit) should be moved so the project can be closed.


Q fund statements2
Q Fund Statements cost increases of up to $17m per year by 2020

  • Contract-based Q Funds SHOULD NOT be used for discretionary expenditure

  • Review of Q funds with old end dates on ARIES will be an annual process for SPF

  • Activity should assist Colleges in identifying their true discretionary funds for the annual budget process


QUESTIONS cost increases of up to $17m per year by 2020

?


2011 annual financial statements zachary ong

2011 Annual Financial Statements cost increases of up to $17m per year by 2020 Zachary Ong


Systems and processing timetable
Systems and Processing Timetable cost increases of up to $17m per year by 2020

2 DAYS TO GO! (roughly)


Systems and processing timetable cont d
Systems and Processing Timetable (Cont’d) cost increases of up to $17m per year by 2020


Systems and processing timetable cont d1
Systems and Processing Timetable (Cont’d) cost increases of up to $17m per year by 2020

WelcometotheNewYear(2012)

- Well, not just yet!

3.5 Days!


Other items
Other Items cost increases of up to $17m per year by 2020

  • Encumbrances

  • Completeness of AFS Packs

  • Supporting Documentation

  • Review…


Questions2
Questions? cost increases of up to $17m per year by 2020


2012 recurrent budget setting melissa abberton and mark baker

2012 Recurrent Budget Setting cost increases of up to $17m per year by 2020 Melissa Abberton and Mark Baker


2012 budget timetable
2012 Budget Timetable cost increases of up to $17m per year by 2020

Similar to previous years

  • Performance data provided to ANU Colleges - September

  • Initial meetings with College Deans - October

  • Plenary meeting with College Deans - 24 November

  • Finance Committee – 25 November

  • Council – 2 December

  • Draft budget allocations advised mid-December

  • Final advice to Colleges by 13 January 2012


2012 budget context
2012 Budget Context cost increases of up to $17m per year by 2020

  • Started to align $ incentives (funding drivers) with ANU by 2020

  • Change in (some) allocation treatments – off-the-top amounts

  • Approval now required to spend down on R-ledger cash balances

Insert/remove name of area (view > header and footer)


2012 budget process
2012 Budget Process cost increases of up to $17m per year by 2020

  • Achievement of individual ANU College Plans

  • Performance data – academic activity, by individual, including U/g and P/g teaching loads, PhD supervision load and completion rates, service, publications, HERDC income

  • Completion rates for Staff Statement of Expectations

  • Staff renewal plans

  • Manage sub-optimal performance


New for 2012
New for 2012 cost increases of up to $17m per year by 2020

  • Higher Education Indexation Factor allocated at 2.89%

  • HECS/CGS funded target includes a 3% increase over 2011 actuals

  • DTF/ISF income projected at (3.4% load 5% fee) $134 million

  • RTS Low-Cost HDR funded at $21,000 & High-Cost at $33,664

  • Off-the-top Deductions – Q94 + music + library + languages + IT infrastructure

  • Move from per EFTSL charge to flat rate overhead recovery for ISF and DTF

  • 5% of National Institutes Grant allocated on performance (to increase in subsequent years)


2012 projected income draft
2012 Projected Income (DRAFT) cost increases of up to $17m per year by 2020


2012 draft allocations
2012 Draft Allocations cost increases of up to $17m per year by 2020


2012 draft allocations1
2012 Draft Allocations cost increases of up to $17m per year by 2020

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2012 operating allocations
2012 Operating Allocations cost increases of up to $17m per year by 2020


The next steps
The Next Steps cost increases of up to $17m per year by 2020

  • Seek Council approval of Draft 2012 Recurrent Budget, 2 Dec 2011

  • OVC & F&BS site visits to discuss 2012 budget changes

  • Draft 2012 income allocations advised mid-December

  • Final advice to ANU Colleges by 13 January 2012


New budget advice sheet presentation
New budget advice sheet presentation cost increases of up to $17m per year by 2020


New budget advice sheet presentation1
New budget advice sheet presentation cost increases of up to $17m per year by 2020


F bs survey
F&BS Survey cost increases of up to $17m per year by 2020

  • All finance staff are encouraged to complete this survey.


Questions issues
Questions/Issues? cost increases of up to $17m per year by 2020


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