PRESENTATION TO FINANCIAL SUPPORT SERVICES STAFF

1. PRESENTATION TO FINANCIAL SUPPORT SERVICES STAFF Communication Update – 18 February 2010

2. FSS OVERVIEW UMA KUMAR | MANAGER - FSS FINANCIAL OPERATIONS & SYSTEMS

3. FSS COMMUNICATION UPDATE 18 FEB 2010 Welcome & Morning Tea All (15 mins) Overview of FSS Uma Kumar (10 mins) Projects Updates • Spendvision & Asset Management Krishan Prasad (10 mins) • Procure to Pay (P2P) Lean Lee (20 mins) • Optical Character Recognition (OCR) & Asset Receipting • Order to Collections (O2C) & SLA’s Kevin Lacey (15 mins) Questions & General Discussion All (15 mins) AGENDA

4. FSS OVERVIEW • Where we are • Where from here • Project Updates: FOS projects, directly or indirectly impact staff. MEETING OBJECTIVE

5. FSS OVERVIEW • Objectives and Benefits - FSS staff continual support to FOS initiatives enabling: • Leverage and improvements to Financial Transactional processes between Faculty Finance and Shared Services of FOS; • Productive utilisation of resources; • Ensure compliance with regulatory and statutory requirements; • Consolidation & consistency of Financial Transactional processes; • Increase in process efficiencies; • Improve customer service; • Economies of scale through cost optimisation FSS SUPPORTING OBJECTIVES & BENEFITS

6. FSS OVERVIEW • Accounts Payable • Accounts Receivable • Cashiering FSS FUNCTION SCOPE

7. FSS OVERVIEW • New Duty Statement in operation- staff to adhere. • Review of Faculties of Health transactional processes under way • Development of Precinct Model in progress OPERATIONAL MATTERS

8. SPENDVISION AND ASSET MANAGEMENT Status Report Krishan Prasad | Manager Training and Financial Systems Support FINANCIAL OPERATIONS & SYSTEMS | 18 February 2010

9. SPENDVISION PROJECTS & INITIATIVES Background: General feedback from users was that the coding process is complex as they have to understand the class codes in the Chart of Accounts. Most users do not have a finance background. End result: Users only have to fill in a quick questionnaire and the system defaults the appropriate expense class code. Users no longer have to understand the Chart of Accounts. Limitation: Users still have to know their RC, Project Code(s) and Analysis Codes as only they can decide which fund is to be used for the expense on the card. ETI - CORPORATE CARD TRANSACTION CODING PROCESS SIMPLIFIED

10. SPENDVISION PROJECTS & INITIATIVES The initiative commenced in November 2009. The following combination of information was used to set up various expense categories: 2008/2009 data from Spendvision to analyse the class codes used in Spendvision by the users; Travel and purchasing needs on the corporate card. Through a logical grouping, various expense categories were developed and the different expenses were grouped under appropriate categories. User testing was done. A positive response was received from UAT. Various presentations were done in the main campus and in various other sites to communicate the changes. The new coding process went live on 2 December 2009. ETI - CORPORATE CARD TRANSACTION CODING PROCESS SIMPLIFIED 10

11. SPENDVISION PROJECTS & INITIATIVES Identified the general staff in Spendvision through HR report and changed the default codes from 00000 to their relevant new project codes, as advised by the Office of Chief Accountant. A communication was later sent to the Finance Directors of this change. As an ongoing process, the Spendvision team is now updating the access to users as per the request from the Schools/departments. NEW UEM MODEL 11

12. SPENDVISION PROJECTS & INITIATIVES CORPORATE CARD REVIEW • A review of existing cardholders and their credit limit usage began in November 2009. • The process is to reduce to the card limit if cardholders do not have much activity on their card and to cancel the card if it is no longer required. • The advantage of the review process is: • The credit limit can be re-used by those cardholders who need it most; • If the card is cancelled, the annual fee payment on the total number of cards is reduced; • Addresses some of the audit requirement. 12

13. ASSET MANAGEMENT (PS AM 8.9) Enable users to take ownership of Asset Activities Eliminate Manual, Paper Based tasks where possible Provide user friendly and powerful on line inquiries to users Provide standard reporting facilities Encourage the use of PS AM 8.9 as sole inventory BENEFITS OF SOLUTION IMPLEMENTED 13

14. STANDARDISATION FEATURES The PS AM 8.9 solution provides one standard platform for AM Life Cycle business process Systems Procedures People • One single source of truth • Consolidated data in one repository within existing Software and infrastructure • Integrated basic AM Life Cycle • Provide on line inquiries & standard reporting • Empower Departments to ‘own’ their Assets whilst enabling Financial Controls to be exercised where needed • Improved process cycle time and process cost • Reduced paper-based activities 14

15. IMPLEMENTATION STATUS Roll out completed End of November 2009 Access/Training now available through established procedure 15

16. NEXT STEPS Responsibility Post Implementation Review FOS/OCA Start March 2010 Implement Asset Maintenance FOS/FHS Identify maintenance types Linked to Specific Assets Create Maintenance Schedule Extract follow up Schedules and Maintenance Cost Reports 16

17. QUESTIONS QUESTIONS? For further information contact: Krishan Prasad Manager – Training & Financial Systems Support krishan.prasad@sydney.edu.au Tel. +61 2 9351 4629 | Mob. +61 423 220 887 Luc Bhoyroo Project Lead AM - Financial Operations & Systems luc.bhoyroo@sydney.edu.au Tel. +61 2 9351 3564 | Mob. +61 410 411 467 17

18. FOS PROJECT UPDATE Procure To Pay | OCR | Asset Receipting Lean Lee | Financial Systems Development Manager Financial Operations and Systems

19. PROCURE TO PAY (P2P) PROJECT

20. P2P ROLLOUT ACHIEVEMENTS TO DATE Public Health Aerospace, Mechanical & Mechatronic Engineering Veterinary Science Main Campus Agriculture – Camden Agriculture – main campus Biological Sciences Physics Geosciences Chemistry Public Health – Northern Rivers Royal North Shore Hospital Languages & Cultures Planning and Statistics School of Rural Health - Dubbo Letters, Art and Media Chemical & Biomolecular Engineering Civil Engineering Philosophical & Historical Inquiry Learning Solutions Anatomy Physiology Faculty of Medicine IT Family Medicine Research Centre Central Clinical School Electrical & Information Eng Information Technologies Faculty of Law International House 28 EPR SITES AS AT 15 FEBRUARY 2010

21. P2P ROLLOUT ACHIEVEMENTS TO DATE 9 FULL SITES AS AT 15 FEBRUARY 2010 • Pharmacology • Molecular & Microbial Biosciences • Veterinary Science Camden • ICT PC Procurement Services • ICT Audio Visual Equipment • ICT Finance • Faculty of Health Sciences • Faculty of Law • BMRI

22. P2P PROCESSES AND IMPROVEMENTS

23. P2P PROCESSES AND IMPROVEMENTS

24. BENEFITS DELIVERED TO YOU P2P was easy to learn. Financial Operations offered continued support and training. The eCatalogue feature saves time because it eliminates the need to check prices. The addition of more companies will be very beneficial. Receipting in P2P is a lot simpler and faster than coding the credit cards. Assets are entered directly into P2P at the time of receipting. P2P reports were tailored to our requirements. Data can easily be retrieved. It offers a more transparent way of dealing with purchases. The requester can monitor how the order is progressing from the initial requisition until the payment is made. QUOTES FROM SILVANA HOURCADE:

25. ROADMAP FORWARD Formalize a project, with project manager, project governance, dedicated project resources and co-sponsorship from Procurement Services and FOS Form Working Party that include members from Procurement Services, FOS, OCA, Faculty Cluster representations and ICT Determine the process ownership for Vendor Management and Assets acquisition process Determine rollout strategy forward Supplier Management and rationalization should be the biggest most important objective of future rollout Review financial delegations and determine the repository and the management for these data The rollout will continue ‘as-is’ until further decisions are made RECOMMENDATIONS TO CFO:

26. OPTICAL CHARACTER RECOGNITION (OCR) FOR NON-PO INVOICES PROJECT

27. PROJECT OBJECTIVES Automate up to 80% of manual voucher processing for non-PO invoices Increase transaction processing accuracy Improve turnaround of invoice processing Relieve staff from mundane task to perform more value added activities Enable staff to manage increasing workload Reduce storage costs Quick and easy retrieval of stored documents Response to vendor inquiries quickly Electronic tracking of documents

28. HOW DOES THIS IMPACT YOU? ‘Green Stamp’ turns Electronic! Attach scanned invoice Automatic email to selected approver Approver approves via email Form automatically sent to AP

29. WHAT ARE THE OTHER BENEFITS TO YOU? Coding automatically default from the last form for the same supplier that you processed – save manual entry For new supplier, your selected RC, Project, Analysis default to the form No more running after the approver for signature No more sending invoices via snail mail No more translation errors by AP View scanned image of invoice from PeopleSoft Voucher Inquiry – no more ringing AP Hardcopy invoice can be destroyed after a specified period (yet to be determined)

30. PROJECT TIMELINE

31. ASSET (OWNED / LEASED) ACQUISITION AND RECEIPTING ENHANCEMENTS

32. WHY THE CHANGE? Incorrect asset requisitions create a problem in downstream processes Unable to do split funding for a single asset Unable to create asset with multiple components, where the individual component falls under the asset threshold of $10,000 Enable Central Asset Management to track and manage asset properly

33. WHAT ARE THE CHANGES? You can do split funding for a single asset at requisition You can create asset with multiple components at requisition, where the individual component falls under the asset threshold of $10,000, and still allow the components to consolidate into one asset To ensure correct asset creation in Asset Management System, asset details must be entered correctly at receipting: • Split Funding: enter same asset details on all distribution lines that belong to the same asset • Multiple Components: enter same asset tag, but with a suffix a, b, c etc on each line

34. WHAT IS THE IMPACT ON YOU? If you are raising and receipting asset requisitions, then you need to learn the correct system procedures There is a new training course EPRO101 – Requisitioning & Receipting Owned and Leased Asset Next Training Session scheduled: ePRO101 – Requisitioning and Receipting (Asset Purchases) 23 February 2010; 2.00pm – 4.00pm Please register at:http://fmx01whs.ucc.usyd.edu.au:8080/learningsolutions/register.jsp?ID=T3153

35. “O2C” PROJECT INITIATIVES Project Update | State of Play Kevin Lacey for Gemma Gill | Project Leader Financial Operations and Systems

36. AR CUSTOMER INITIATIVES WHAT HAVE WE DONE TO DATE Review of AR Customer file completed August 2009 • Inactivation & consolidation process reduced 60% (approx 13,120) of redundant Trade Debtor customer files in PeopleSoft to improve Billing, Collection efforts and data integrity Assigning Industry classification codes to AR customer base completed January 10 • This classification provides a framework for organising data on Trade Debtor income and Industry benchmarking by enabling the grouping of business units and industry sectors Capturing of electronic billing data commenced • The capturing of electronic billing data i.e. Email address’s has commenced for approx 5,000 AR customers

37. COLLECTIONS PROJECT STATUS UPDATE PROJECT TIMELINE Signed-off Business Requirements for PeopleSoft System customization/enhancements to support “To-Be” centralised framework PeopleSoft System Customization/enhancements (commenced Feb 10) Review of AR Trade Debtor policies, procedures and responsibilities

38. AR REPORTING AR MANAGMENT REPORTING PROJECT – IMPLEMENTED OCT 09 • The ARMR Project was implemented successfully and finalised in October 09 • Project Deliverables implemented: • Re-built AR Tree in PeopleSoft Financials in-line with agreed Faculty Finance structures • Streamlined and consolidated Bill Source codes to reflect agreed reporting layers • Reduced redundant Bill Sources by 25% • Enhanced Aged Debtor report granularity i.e. at School/Department/Centre/Institute level • Improved self service of AR Management reports through Hyperion and PeopleSoft Financials

39. SERVICE LEVEL AGREEMENTS (SLA’S) Update | State of Play Kevin Lacey | Consultant Financial Operations and Systems

40. SERVICE LEVEL AGREEMENTS DEFINITION “An agreement between the service provider and its customer quantifying the minimum acceptable service of the customer”

41. SERVICE LEVEL AGREEMENTS KEY ASPECTS • Supports Shared Service Model • Quantifies minimum service levels in Key Processes • Measurement of efficiency & effectiveness in outcomes of Key Processes • Two way measurement (end to end) & reporting on Key Processes • Review current processes to identify key aspects that can be improved • Enable more productive utilisation of resources

42. SERVICE LEVEL AGREEMENTS OVERVIEW

43. SERVICE LEVEL AGREEMENTS 1 AUGUST 2009 SLA available online- http://www.finance.usyd.edu.au/docs/service_level agreement.pdf

44. SERVICE LEVEL AGREEMENTS MONTHLY STATUS REPORT

45. SERVICE LEVEL AGREEMENTS St MONTHLY STATUS REPORT

46. QUESTIONS & GENERAL DISCUSSION