PRESENTATION TO FINANCIAL SUPPORT SERVICES STAFF

Communication Update – 18 February 2010

UMA KUMAR | MANAGER - FSSFINANCIAL OPERATIONS & SYSTEMS

FSS OVERVIEW

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)

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AGENDA

FSS OVERVIEW

› Where we are

› Where from here

› Project Updates: FOS projects, directly or indirectly impact staff.

MEETING OBJECTIVE

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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

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FSS OVERVIEW

› Accounts Payable

› Accounts Receivable

› Cashiering

FSS FUNCTION SCOPE

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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

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SPENDVISION AND ASSET MANAGEMENT

Status Report

Krishan Prasad | Manager Training and Financial Systems SupportFINANCIAL OPERATIONS & SYSTEMS | 18 February 2010

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.

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ETI - CORPORATE CARD TRANSACTION CODING PROCESS SIMPLIFIED

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.

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ETI - CORPORATE CARD TRANSACTION CODING PROCESS SIMPLIFIED

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.

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NEW UEM MODEL

SPENDVISION PROJECTS & INITIATIVES

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› 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.

CORPORATE CARD REVIEW

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

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BENEFITS OF SOLUTION IMPLEMENTED

STANDARDISATION FEATURES

› The PS AM 8.9 solution provides one standard platform for AM Life Cycle business process

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ProceduresSystems People

1. One single source of truth

2. Consolidated data in one repository within existing Software and infrastructure

3. Integrated basic AM Life Cycle

1. Improved process cycle time and process cost

2. Reduced paper-based activities

1. Provide on line inquiries & standard reporting

2. Empower Departments to ‘own’ their Assets whilst enabling Financial Controls to be exercised where needed

IMPLEMENTATION STATUS

› Roll out completed End of November 2009

› Access/Training now available through established procedure

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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

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For further information contact:

Krishan PrasadManager – Training & Financial Systems Supportkrishan.prasad@sydney.edu.auTel. +61 2 9351 4629 | Mob. +61 423 220 887

Luc BhoyrooProject Lead AM - Financial Operations & Systemsluc.bhoyroo@sydney.edu.auTel. +61 2 9351 3564 | Mob. +61 410 411 467

QUESTIONS?

QUESTIONS

FOS PROJECT UPDATEProcure To Pay | OCR | Asset Receipting

Lean Lee | Financial Systems Development ManagerFinancial Operations and Systems

PROCURE TO PAY (P2P) PROJECT

P2P ROLLOUT ACHIEVEMENTS TO DATE

Public HealthAerospace, Mechanical & Mechatronic

EngineeringVeterinary Science Main CampusAgriculture – CamdenAgriculture – main campusBiological SciencesPhysicsGeosciencesChemistryPublic Health – Northern RiversRoyal North Shore HospitalLanguages & CulturesPlanning and StatisticsSchool of Rural Health - Dubbo

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28 EPR SITES AS AT 15 FEBRUARY 2010

Letters, Art and MediaChemical & Biomolecular EngineeringCivil EngineeringPhilosophical & Historical InquiryLearning SolutionsAnatomyPhysiologyFaculty of Medicine ITFamily Medicine Research CentreCentral Clinical SchoolElectrical & Information EngInformation TechnologiesFaculty of LawInternational House

P2P ROLLOUT ACHIEVEMENTS TO DATE

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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

P2P PROCESSES AND IMPROVEMENTS

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MECHANISM CURRENT PROCESS PROCESS IMPROVEMENTS

Invoice with “Green Stamp” (with no Purchase Order)

No PO’s are raised Invoices are sent to the faculties or directly

to Accounts Payable Invoices must be green-stamped and

authorised by a staff with financial delegation of authority

Accounts Payable pay on approved invoices

• Encourage the use of P2P system or credit cards as replacement as part of P2P Rollout

• Implement PeopleSoft/OCR/K2/TRIMS solution to process paper invoices, eliminate ‘green-stamp’, manual entry and hardcopy storage. Target live date 31/3/10.

Corporate Card – Spendvision Purchase of goods <$5000 Transactions are quoted and approved after the event Card holders are responsible to retain tax invoices

• Eliminate approval for amounts under $82.50• Improve ease-of-use by implementing expense

description search• Long term vision is to retain this for Travel and

Entertainment only

Request for Manual Payments Students, Visiting academics Professionals, scholarship

Only used as the last resort. Most claims submitted via SpendVision Cash Claim

• Speed up data entry by spreadsheet voucher load

• Implement PeopleSoft/K2/TRIMS solution late 2010

P2P PROCESSES AND IMPROVEMENTS

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MECHANISM CURRENT PROCESS PROCESS IMPROVEMENTS

Reimbursement via Petty Cash (<=$150)

Small value spends where other mechanisms are not practical

Investigate the use of SpendVision as electronic float

Reimbursement via Payroll Claims submitted via Spendvision Cash Claim.

No Change (Status Quo)

External Purchase Requisition(>= $5000) or Attractive Items

Purchase of goods >= $5000 Preferred method for Attractive Items Paper EPR forms are completed, signed, and forward to Central Purchasing Central Purchasing process purchase orders

• Rollout P2P System to all FSS staff and some non FSS staff others, eliminate paper EPR

• Eliminate leased asset data entry in Archibus• Implement electronic receipts loading from

suppliers’ files - work has commenced• Streamline and standardise leased/owned

asset procurement receipting and verification process – phase approach, partially implemented

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.

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QUOTES FROM SILVANA HOURCADE:

ROADMAP FORWARD

Formalize a project, with project manager, project governance, dedicated project resources and co-sponsorship from Procurement Services and FOSForm Working Party that include members from Procurement Services, FOS, OCA, Faculty Cluster representations and ICTDetermine the process ownership for Vendor Management and Assets acquisition process Determine rollout strategy forwardSupplier Management and rationalization should be the biggest most important objective of future rolloutReview financial delegations and determine the repository and the management for these dataThe rollout will continue ‘as-is’ until further decisions are made

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RECOMMENDATIONS TO CFO:

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

PROJECT OBJECTIVES

Automate up to 80% of manual voucher processing for non-PO invoicesIncrease transaction processing accuracyImprove turnaround of invoice processingRelieve staff from mundane task to perform more value added activitiesEnable staff to manage increasing workloadReduce storage costsQuick and easy retrieval of stored documentsResponse to vendor inquiries quicklyElectronic tracking of documents

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HOW DOES THIS IMPACT YOU?

‘Green Stamp’ turns Electronic!Attach scanned invoiceAutomatic email to selected approverApprover approves via emailForm automatically sent to AP

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WHAT ARE THE OTHER BENEFITS TO YOU?

Coding automatically default from the last form for the same supplier that you processed – save manual entryFor new supplier, your selected RC, Project, Analysis default to the formNo more running after the approver for signatureNo more sending invoices via snail mailNo more translation errors by APView scanned image of invoice from PeopleSoft Voucher Inquiry – no more ringing APHardcopy invoice can be destroyed after a specified period (yet to be determined)

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PROJECT TIMELINE

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ASSET (OWNED / LEASED) ACQUISITION AND RECEIPTING ENHANCEMENTS

WHY THE CHANGE?

Incorrect asset requisitions create a problem in downstream processesUnable to do split funding for a single assetUnable to create asset with multiple components, where the individual component falls under the asset threshold of $10,000Enable Central Asset Management to track and manage asset properly

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WHAT ARE THE CHANGES?

You can do split funding for a single asset at requisitionYou 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 assetTo 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

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WHAT IS THE IMPACT ON YOU?

If you are raising and receipting asset requisitions, then you need to learn the correct system proceduresThere is a new training course EPRO101 – Requisitioning & Receipting Owned and Leased AssetNext 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

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“O2C” PROJECT INITIATIVES Project Update | State of Play

Kevin Lacey for Gemma Gill | Project Leader Financial Operations and Systems

AR CUSTOMER INITIATIVES

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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

COLLECTIONS PROJECT

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STATUS UPDATE

› 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

Phase Task Name Start Finish

Centralization of Collections 2/11/09 24/12/10 1 PeopleSoft System Customization 2/11/09 31/05/10

2 PeopleSoft System Configuration

3 Testing, training, UAT with FOS Collections Group 1/5/10 30/6/10

4 Data Cleansing 1/4/10 30/7/10

5 Mobilisation of Organisation 8/03/10 28/05/10

6 Change Management and Communication Plan 31/05/10 20/08/10

7 Roll-out 23/08/10 12/11/10

8 Monitor, Report & analyse 15/11/10 24/12/10

PROJECT TIMELINE

› 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

AR MANAGMENT REPORTING PROJECT – IMPLEMENTED OCT 09

AR REPORTING

SERVICE LEVEL AGREEMENTS (SLA’S)Update | State of Play

Kevin Lacey | Consultant Financial Operations and Systems

SERVICE LEVEL AGREEMENTS

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“An agreement between the service provider and its customer quantifying

the minimum acceptable service of the customer”

DEFINITION

SERVICE LEVEL AGREEMENTS

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› 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

KEY ASPECTS

SERVICE LEVEL AGREEMENTS

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Service Level Agreements (SLAs) Overview

OutputFacultyFO&SInput

Defining processes for SLAs

Define individual process,

components, criteria.

Discuss with the team manager for respective process

Capturing data from all Faculties

& Dept

Discuss about SLA draft with

Project Sponsor

If Project Sponsor approve

Discuss SLA draft with all key

stakeholders (Finance

Director,Staff)

If all key stakeholders

informed

No

Yes Final SLA Yes

No

Training and communication

strategy

OVERVIEW

SERVICE LEVEL AGREEMENTS

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SLA available online- http://www.finance.usyd.edu.au/docs/service_level agreement.pdf

1 AUGUST 2009

SERVICE LEVEL AGREEMENTS

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MONTHLY STATUS REPORT

SERVICE LEVEL AGREEMENTS

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StMONTHLY STATUS REPORT

QUESTIONS & GENERAL DISCUSSION