Faculty of Medicine

1

• Faculty of Medicine
• Accountants Conference
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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• Introductions name, school, objective for today
• Please turn off your mobile phones
• Location of toilets exits
• Copies of presentations will be made available in
  softcopy
• Stick to agenda
• QA mid way at end

3

• Opening (Prof. Andrew Coats) - 10 minutes
• Roles Responsibilities (Patrick Woods) - 30
  minutes
• 2006 Management Reporting (Michael Dillon) - 30
  minutes
• Travel Guidelines Financial Delegation (Kate
  Pritchett, Helen Ware Brian Mclaughlin) - 30
  minutes
• BREAK 1030am 15 minutes
• 5. Finance Tools Systems (Krishan Prasad) -
  30 minutes
• Shared Services (Declan Devenney) - 30 minutes
• QA 1st half
• LUNCH 1230pm 60 minutes
• 8. BREAKOUT Customers how we support them
  1 hour
• 9. University Finances (Piyush Bhatt) - 30
  minutes
• BREAK 300pm 15 minutes
• 10. Fee Distribution (Helen Wilder/Steve
  Stokes) - 30 minutes
• Investments commercial services (Greg Fernance)
  - 30 minutes
• Wrap up
• FINISH 430pm

4

• Opening - Prof. Andrew Coats
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

5

• Welcome
• Accounting - a Deans perspective
• Expectations from the day

6

• Roles Responsibilities - Patrick Woods
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

7

• Who does what school, faculty, college, central
  finance
• Hiring process
• Duty statement of accountants of the future

8
Financial Operations and Systems Structure
9

• 2006 Mgt. Reporting
• Michael Dillon
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

10

• Current Faculty reporting
• Areas for improvement
• 2006 management reports
• Must Dos in 2006

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• Monthly financial performance of
• 8 schools, of which 4 are clinical
• 13 Foundations
• 23 Affiliated Centers/Institutes
• 600 Bequests
• 2,500 RCs
• 10,000 Project
• In revenue we represent about 60 of the College
  of HS
• Most complex Faculty in all of USYD

12

• Own the numbers!
• Reporting to Heads of Schools/stake holders
• Use accrual accounting to give true financial
  picture
• Improve data quality commentary on monthly
  management reports
• Forecasting within Hyperion
• Deficits accounts
• Overdue Debtors gt10K gt 60 days

13

• Get involved with anything with or RC starting
  with the letter K
• Dont spend what you dont have
• Ask 2 fundamental questions
• Is it within budget?
• If not, how is it being funded
• Balance operational vs. strategic

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• The Facultys annual turnover is around 135m
• 00000 accounts represent less than 40m turnover
  (lt30)
• The remaining 70 is not currently well
  scrutinised or controlled
• No-one else is taking Financial Responsibility
  for any of our accounts
• Your Head of School is accountable for every
  account that is mapped into the School
• University and College are pressuring us to move
  to forecasting at the All Project level

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• Review, consolidate close all inactive or
  obsolete accounts
• Transferring income expenditure Stick to the
  original class codes, unless theres a good
  reason not to
• Dont transfer costs using Internal Income (e.g.
  3319/6751)
• Dont want to see negative income i.e. costs in
  reports. This is an error that should be
  corrected. Similarly (though less common)
  negative costs

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• Bottom up is preferred method, especially for
  salaries if youre fully staffed, but not much
  use for anything else
• Assume budget will be achieved (only reasonable
  if youre in good control and can ensure that
  budget is achieved)
• Assume actuals plus amounts budgeted for the
  remainder of the year
• Year to date remaining months x average of last
  12 months (excluding outliers) good for regular
  recurring costs that arent prone to major
  one-off hits (e.g. consumables).
• Adjust for any known one-off big costs coming
  through
• Year to date commitments recorded in Peoplesoft
• Use budget Model by month. Good for Salary
  costs, if the current month is representative

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• Numbers will auto-populate - value add is to
  provide insightful commentary, analysis and
  strategy
• Minimize analysis on historical results but
  rather focus on future outlook
• Reporting package
• Statement of Financial Performance (Income
  Expenditure)
• Operating margin
• Reserves Accumulated Funds
• KPIs
• Trade debtors
• Deficit accounts
• Commentary verbage

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Key Performance Indicators

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Deficit Accounts
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• Implement management reporting _at_ Schools
• Focus areas
• Forecasting process accuracy
• Housekeeping
• practice accrual accounting
• deficit accounts
• inactive accounts
• old NHMRC grants
• 120 day debtors
• Communication sharing
• Review everything you do challenge
• Leasing Philip Stead

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• Travel Guidelines Financial Delegation
• Kate Pritchett, Helen Ware Brian Mclaughlin
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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• Travel guidelines (Kate)
• Local
• International
• Per diem
• Expense claims
• Financial delegations (Brian Helen)
• Who can sign what
• Approval process
• Certification vs. authorization
• What needs to be filled in on the stamp

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• Local Travel
• Release of Online Booking Tool for domestic
  travel available now
• 2006 negotiation of accommodation and car rates
  bookable through booking tool one stop travel
  shop

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• International Travel
• Mandated agents now have access to range of
  international route deals, providing discounts
  and flexibility on the Universitys major
  destinations ex Sydney
• Details at www.finance.usyd.edu.au/travel/
• Compliance monitoring heating up in 06
  Spendvision used to identify use of
  non-contracted agents, traveller and approver
  will need to justify

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• Expenses and Per Diems
• Per Diems available, at one rate regardless of
  salary
• Traveller can choose to use Per Diem or Corp Card
  for meals and incidentals but cannot mix
• When approving Corp Card expenses, refer to per
  diems for whats reasonable, or benchmarking tool
  at www.finance.usyd.edu.au/travel

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• Student Travel
• Student Travel Policy and Procedures currently in
  development, standardizing University approach to
  recording and approving student travel

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• Financial delegations (Brian Helen)
• Who can sign what
• Approval process
• Certification vs. authorization
• What needs to be filled in on the stamp

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• Finance Tools Systems
• Krishan Prasad
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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Financial Operations and Systems
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• Current financial tools
• What are they
• What to use when
• How to gain access
• Group training
• Personalised training
• Super users
• Whats new in 2006

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Financial Operations and Systems

• Current Financial Tools
• Your responsibilities, What tools to use, when to
  use and how to get access
• Key dates and deadlines (indicative)
• Helpdesk
• Finance Community of Practice (FCop)
• Training
• Group and personalised training
• Super Users
• Whats new in 2006

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Responsibilities

• Finance
• Leadership
• Governance
• Strategic Directions 2006-2010

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Finance Leadership

• Develop and submit annual budgets, including
  proper evaluation of resource requirements for
  strategic initiatives.
• Monitor ongoing financial performance, take
  action as appropriate to ensure that expenditure
  remains within budget.

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Finance Leadership

• Ensure compliance with Universitys purchasing
  policy and procedures, including non allowable
  expenses.
• Ensure compliance with delegations for specific
  activities and financial delegations.
• Ensure compliance with travel policy and
  procedures.
• Ensure compliance with risk management policy and
  procedures.

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Finance Governance

• Finance Committee of Senate
• Audit and Risk Management Committee of Senate
• Budget, Planning and Capital Management Board of
  Finance Committee
• Tender Board of Finance Committee
• Finance and Accounting Manual Policies and
  Procedures
• Risk Management Office Policies and Procedures

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Financial performance best practice standards

• Strategic Directions 2006-2010
• Standards of performance and benchmarks
• No.6 Continuous improvement in best-practice
  financial disciplines and fiscal stewardship

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Finance Operations

• Key activities and tools
• Resources

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Finance Operations key activities and tools

• Budgeting Forecasting
• Monitoring reporting financial performance
• Purchasing paying for goods and services
• Travel
• Taxation
• Revenue income

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Planning (Budgeting) and Forecasting

• Governance
• Senate Finance Committee through the Budget,
  Planning and Capital Management Board
• Support
• Budget Policy Guidelines
• Process
• Budget Preparation

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Planning (Budgeting) and Forecasting

• Process Budget Preparation tool
• Hyperion (BPM) system
• Planning Module
• Budgeting detailed level or summary level
• Forecasting
• quarterly, monthly,1 year, 2 years, 5 years and
  10 years forecasts

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Monitoring and Reporting Financial Performance

• Governance
• Senate Finance Committee through the Budget,
  Planning and Capital Management Board
• Tools
• Hyperion (BPM) system
• Reports Module
• Financial Management Reports
• Planning Reports
• Annual Financial Report

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Monitoring and Reporting Financial Performance

• Hyperion (BPM) system
• Reports Management Reports
• Planning Budgeting and Forecasting
• Intelligence (queries) e.g. transaction report,
  payroll report.
• Analyzer (new) Ad hoc reports
• Acquittals (new) ARC grant acquittals

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Financial Operations Tools

• Hyperion (BPM) system
• Architecture
• Database

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Overnight copy
End user Access area
Hyperion Intelligence
Data Warehouse
Hyperion Reports
Overnight rebuild structure and data
Cubes are deleted and recreated each night
Hyperion Essbase
Hyperion Analyzer
Reports GL
Annual GL
Analysis
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End user Access area
Overnight copy
Hyperion Planning
Forms
Form definition from SQL db, when data is saved,
its sent to Essbase
Data Warehouse
Monthly build structure
Monthly build actual data
Business Rules are invoked from a form and
calculate Essbase data
Cubes are not deleted but actuals added each
month
Contains structure, form definition, security
Hyperion Essbase
Hyperion Reports
Hyperion Analyzer
Analysis
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• Help Desk 16000
• Reports, Analyzer, Intelligence
• Functional Support
• Christina Fava Management Reports
• Fiona Tangi, Aldo Trisno CHS (Super Users)
• - Application Support Peter Halls
• Specialist Support Vicki Hatt, Essbase
  Technical specialist
• Planning
• - Functional Support
• Michael Jacquin
• Specialist Support Asa Andersson, Vicki Hatt

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Purchasing and Paying for Goods and Services

• Governance
• Senate Finance Committee through the Tender Board
• Purchasing Policy
• Support
• Purchasing website
• Purchasing Preferred Suppliers
• Purchasing Tendering Procedures
• Purchasing Purchase Order Procedures
• Non-Allowable Expense Procedures
• Payment Procedures

50
Purchasing and Paying for Goods and services

• Forms
• External Requisition (available from University
  Publishing Service) to generate University
  Purchase Order
• Payment Request form
• Tools
• PeopleSoft Financial (Purchase order process and
  paying for goods and services)
• Spendvision Expense Management system (Corporate
  Card)
• New tool in May 2006
• e-procurement

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Travel

• Governance
• Travel Policy
• Support
• Travel Website (requires UniKey login)
• Travel Management Companies and Travel Online
  Booking Tool
• Travel Procedures
• Per Diem calculator
• Estimated expenses by city

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Travel

• Forms
• Online Travel Request form within the
  Universitys Expense Management System
  (Spendvision)
• Traveller Profile Record
• Request for approval to travel business class
  form
• Corporate Card Application and NAB Agreement form
• Process
• Flowchart on how to make a travel booking

53
Taxation

• Governance
• GST Guide (Goods and Services Tax)
• FBT Guide (Fringe Benefits Tax)
• Support
• FBT Entertainment at a Glance
• ATO Assist

54
Revenue and Income

• Support
• Research Office website
• Business Liaison Office website
• FlexSIS website
• Trade Debtors Policies and Procedures
• Tool
• PeopleSoft Financials
• Invoicing
• Accounts Receivable Managements
• Customer conversations
• Review customer accounts, transaction, payments
  etc
• Reports e.g. Age Analysis report

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Financial Systems
Spendvision Expense Management
OneStop Revenue Receipting
Archibus Asset Management
Hyperion (BPM) Budgets and Forecasts Hyperion
Reports
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Key dates and deadlines indicative only
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Key dates and deadlines indicative only
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Key dates and deadlines indicative only
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Key dates and deadlines indicative only
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Key dates and deadlines indicative only
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Key dates and deadlines indicative only
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IT Support

• Doug Vail
• Manager - Applications Production Support

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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
2nd Level Support
3rd Level Support
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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
HEAT
2nd Level Support
3rd Level Support
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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
HEAT
2nd Level Support
3rd Level Support
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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
HEAT
DEFAULT

• Internal Service Providers
• Hardware
• Networks
• Operating Systems

• Technical Support
• Operations
• Application Performance
• Access and Security
• Databases, Refresh

• Functional Support
• System Administration
• Report Requests and Development
• Queries

• Development and Support
• Application Support
• Upgrades/Patches
• Interfaces

2nd Level Support
3rd Level Support
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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
HEAT
DEFAULT

• Functional Support
• System Administration
• Report Requests and Development
• Queries

• Technical Support
• Operations
• Application Performance
• Access and Security
• Databases, Refresh

• Internal Service Providers
• Hardware
• Networks
• Operating Systems

• Development and Support
• Application Support
• Upgrades/Patches
• Interfaces

2nd Level Support
3rd Level Support
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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
HEAT
DEFAULT

• Functional Support
• System Administration
• Report Requests and Development
• Queries

• Internal Service Providers
• Hardware
• Networks
• Operating Systems

• Technical Support
• Operations
• Application Performance
• Access and Security
• Databases, Refresh

• Development and Support
• Application Support
• Upgrades/Patches
• Interfaces

2nd Level Support
Account Management Role
3rd Level Support

• External Service Providers
• Hyperion
• BEA
• HP
• Sybase
• Oracle

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Customers

• ICT Helpdesk (x16000)
• Resolution at first point of contact
• Logging and Routing calls
• Access Control and Security

1st Level Support
HEAT
DEFAULT

• Internal Service Providers
• Hardware
• Networks
• Operating Systems

• Technical Support
• Operations
• Application Performance
• Access and Security
• Databases, Refresh

• Functional Support
• System Administration
• Report Requests and Development
• Queries

• Development and Support
• Application Support
• Upgrades/Patches
• Interfaces

2nd Level Support
Account Management Role
3rd Level Support

• External Service Providers
• Hyperion
• BEA
• HP
• Sybase
• Oracle

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ICT Support Structure

• HEAT (Help Desk Tool)
• What is Required
• Name
• UNIKEY
• Machine ID / DTS Optional
• Module (Intelligence, Reports, Analyzer,
  Planning)
• Brief Description
• Priority Urgent, Normal, Low

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Finance Community of Practice (FCop)

• FCop data base
• All staff e-mail from Patrick woods January 2006
• Your details where you are in the
  organisational structure
• In which finance functions you spent your time
  and what
• Communication
• Systems updates, changes in policies, procedures,
  news etc
• Manage Training

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Financial Operations and Systems

• Access
• Form
• http//www.finance.usyd.edu.au/about/forms.shtml
• Attend training
• http//www.finance.usyd.edu.au/about/training.shtm
  l
• Training and Education Solutions
• Customised training
• Small groups
• Regular courses

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Training and Education Solutions

• Hyperion (BPM) system
• Reports
• Related contents (new) (enhancement to Reports)
• Planning and Forecasting
• Analyzer (new)
• Acquittals (new)
• PeopleSoft Financials
• Financial Enquiries
• Accounts Receivable and Billing
• Accounts Payable
• Purchase Order Processing
• Journal Entry

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Training and Education Solutions

• Archibus Asset Management
• Leasing
• Asset Management
• Spendvision
• Expense Management
• Travel
• OneStop Revenue Receipting
• Finance and Accounting Policies and Procedures
• Basics of Planning and Forecasting
• Advanced Planning and Forecasting

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Training new courses in 2006

• Accounting for Non-Accountants (2nd semester
  2006)
• Hyperion Reports (all reports, contextual)
  March
• Analyzer for End Users - February
• Intelligence for End Users March/April
• Management Reports Interpretation March/April
• Hyperion Reports for Managers (Academic) - April
• Planning Forecasting v4 February
• Advanced Planning and Forecasting March
• Chart of Accounts March/April
• Finance Induction for new staff - March

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Training new courses in 2006

• PeopleSoft Financials v8.9
• e-learning using User Productivity Kit (UKP)
• All modules, process and function
• April/May 2006
• e-procurement

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Training and Education Solutions

• Information
• Finance and Accounting Manual (FAM) -
  http//www.finance.usyd.edu.au/about/manual.shtml
• Training - http//www.finance.usyd.edu.au/about/tr
  aining.shtml
• Manager Training Financial Operations and
  Systems
• Krishan Prasad
• kprasad_at_finance.usyd.edu.au
• Ph 9351 4629

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Financial Operations and Systems

• www.finance.usyd.edu.au
• Universitys Home Page
• www.usyd.edu.au
• Staff Financial Services

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• Shared Services Declan Devenney
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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• What makes up Shared Services
• Revenue Services
• Accounts receivable/trade debtors
• Cashiers
• Student loans
• Accounts payable
• Procurement
• Fleet management
• Corporate Card Travel
• UPS
• Service levels
• Tender waiver process
• 2006 Objectives

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• BREAKOUT
• Customers how we support them
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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• Task to be performed by each of the schools
  presented back to the group
• Who are your customers? max of 3 including
  external internal
• How do you service them
• What do you do for them?
• How often?
• Is it strategic or operational?
• How well is it performed
• Do you receive any feedback
• Are they satisfied?
• Score yourself overall 0-10 (0very bad,
  10exceptional)

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• University Finances
• Piyush Bhatt
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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• Operate 1 January to 31 December
• Federal (DEST) NSW (DET) operate 1 July to 30
  June
• 1 day month end system close
• Instant Consolidation (excluding Controlled
  Assoc. entities)

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• Chart of Accounts
• composed of
• CLASS RC PROJECT ANALYSIS
• 9999 X9999 y9999 zzzz999
• 1st three fields are Mandatory

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• CLASS
• 2000 3999 INCOME
• 4000-7999 EXPENDITURE
• 0000 0999 ASSETS
• 1000 1999 LIABILITY/EQUITY
• Approx 1000 Class Codes

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• RC
• RC Responsibility centre
• A0001 - A0107 Central Use
• A1000 CST
• A2000 CHS
• A3000 CHASS
• 20000 60000 Other central RCs
• These can be moved and added to any parent RC
• for consolidation (Management reporting).
• Carries all its history
• Approx 2000 3000 RC's

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• Project
• xxxxx (Alpha Numeric)
• 00000- Department Core
• 11111 Commercial Other
• Lxxxx Investments Loans
• Bxxxx Bequests
• Txxxx Capital Preserved Trusts
• Fxxxx Facilities Planning
• 22222 University Foundations
• Etc.
• Approx 6000 7000 active projects)

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• Analysis Class
• 10 character Alpha Numeric
• Not mandatory
• Used by Business units to track individual
  activities

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• Unique characteristics
• An RC /or a Project can have carry forward
  reserves.
• Internal Interest distributed to all nominated
  RC/Projects (except Research Operating HO RC /
  Projects)

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• Capital expenditure by Business Unit
• DR 5350 RC K9261 Project 11111
• (Expense P E over 5000 BMRI Commercial)
• In HO
• CR 5350 RC A0001 Project 00000
• DR 0400 RC A0001 Project 00000
• ( Capitalize in RC A0001 Project 00000)

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• Capital expenditure by Business Unit
• DR 5350 RC K9261 Project 11111
• (Expense P E over 5000 BMRI Commercial)
• In HO
• CR 5350 RC A0001 Project 00000
• DR 0400 RC A0001 Project 00000
• ( Capitalize in RC A0001 Project 00000)

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• Ongoing Functions AT Business U level
• Regular reconciliation of balances inc
  Suspense/control accounts
• Invoicing on a regular basis (Has work been
  completed)
• Is that Customer a Supplier as well?? Contractual
  agreements
• Check payroll costs (50 of costs)

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• Ongoing functions (Cont)
• CFA accounting
• Y/E Accruals Goods/Services received invoice
  not processed by Y/E (Diff from Commitment)
• Lease commitments

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• Differences Management to Statutory
• Expense Asset acquisition Vs Capitalize
• Fewer accruals/prepayments Now changing
• No impact of revaluations Vs impact to P/L or
  Reserves
• Emphasis on RC's Vs Emphasis on Class
• Consolidations

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• Time table
• 12th Jan 2006 year end roll
• 30th Jan 2006 Draft AFR for A RM Ctee
• 13th Feb 2006. Final accounts to Audit Office
• 31st March 2006. AO Client Service Report
• 5th April 2006. Sign off
• PLAN TO ACCELERATE THIS

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• Fee Distribution
• Helen Wilder Steve Stokes
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

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Disbursements
103
Fee Cycle Local Students
104
Fee Cycle New Local Students
105
Fee Cycle Continuing Local Students
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Taxes and Levies 2006 Local Students
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Taxes and Levies 2006 Local Students
108
Fee Cycle International Students
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Fee Cycle International Students
New Students

• Offer letter sent to students detailing fees to
  be paid, fees include
• Tuition Fee based on a full time load e.g. 24
  credit points
• Compulsory Subscription
• Overseas Health Cover
• Acceptance received from student including
  payment of fees.
• Student enrols which creates the liability in
  FlexSIS.
• Fees are now ready for disbursement.

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Fee CycleInternational Students

• Continuing Students
• Semester 1
• Student Pre-enrols.
• Pre-enrolment statement forwarded mid January.
• Payment due approximately two weeks after
  statement issued.
• Third week January in person enrolment commences.
• Statement of fees issued Sunday after enrolment.
• Payment due approximately two weeks after
  statement issued.
• Third week of February initial arrears emails
  forwarded to students who have not paid by due by
  date.
• Second week in March second notice sent to
  students with an outstanding balance
• First week in April list of students with
  outstanding fees forwarded to faculties and
  suppression placed on results.

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Fee CycleInternational Students

• Continuing Students
• Semester 2
• Second semester pre enrolment liability forwarded
  to PeopleSoft.
• Initial Statement forwarded from student centre
  currently Mid August.
• Payment due approximately two weeks after
  statement issued.
• Student enrol in person.
• Statement of fees issued Sunday after enrolment.
• Payment due approximately two weeks after
  statement issued.
• Second week of August initial arrears emails
  forwarded to students who have not paid by due by
  date.
• Lat week of August second notice sent to students
  with an outstanding balance.
• Second week of September list of students with
  outstanding fees forwarded to faculties and
  suppression placed on results.

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Fee CycleInternational Students

• Continuing Students
• Semester 2 ( Continued)
• These timelines for arrears follow up are
  dependant on a number of changes being
  implemented for semester 2 2006, these changes
  are as follows
• The semester 2 pre-enrolled liability be
  transferred to PeopleSoft the first week in July.
• The second semester pre-enrolment statement be
  issued in Mid July not mid August. The issuing of
  statements in Mid August delays the collection
  process.
• It is hoped that before second semester that
  student will be able to obtain a financial
  statement on the web through MyUni.

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Taxes and Levies 2006 International Students

• Capital Component 1,493 per semester
• Scholarship Index 0.3356
• Agents Commission 1.9600
• University Library 2.7050
• Strategic Development Fund 2.3100
• CDP-IT 9.0179
• University Income 9.0179
• Top Slicing 5.8954
• College 68.7582
• Capital component comes off the tuition fee and
  the percentages are calculated on the remainder
• This does not take into account percentages
  collected by colleges or faculties

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Taxes and Levies 2006 International Students
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Distribution Process Local International
Students

• Distribution is based on receipts not liability.
• FlexSIS reports show Amount invoiced, amount
  received and amount disbursed to colleges.
• Currently FlexSIS will not disburse until the
  sessions census date has passed.
• Distribution is liability group based therefore
  separate reports are run for each liability
  group, e.g. 310 and 311 for international.
• FlexSIS disburses on a unit of study basis, which
  includes shared teaching arrangements
• When reports have been run each College is sorted
  by faculty and each faculty by department.

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Distribution Process Local International
Students

• FlexSIS issues the report on a cumulative basis,
  therefore each new report has to be subtracted
  from the previous report to obtain the current
  disbursement figures.
• Disbursement figures are reported to colleges on
  a faculty basis. This includes faculty totals for
  amount invoiced, amount received and amount
  disbursed.
• Miscellaneous charges are provided at a college
  level.
• The ideal situation would be to implement an
  automated disbursement run each night based on
  payments and changes that day.

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Reporting Local International Students

• Currently FlexSIS only reports to a college
  level.
• To drill down to faculty and school level
  involves a manual process of data sorting and
  manipulation.
• International Office currently drills down to
  faculty level and provides information on a
  faculty basis.

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• Investments Commercial Services
• Greg Fernance
• Change is Inevitable, Adapting is Critical
• 7th February, 2006

119
KEY FUNCTIONS
Investment Management ? Management of the
Investment Portfolio (excluding Investment
Properties)
Capital Management ? Oversight and monitoring of
Balance Sheet Risk ? External Borrowings ?
Capital Adequacy (i.e. Discretionary Funds) ?
Treasury ? Credit Rating
Internally Managed Externally Managed ? Money
Market Pool ? Growth Pool ? Fixed
Interest Portfolio (Manager of
Managers) ? Share Pool
? Support Commercialisation initiatives ?
Provision of investment advice to internal
clients
? Liquidity Management
120
INVESTMENT CAPITAL MANAGEMENT TEAM

• Investment Capital Management
• ? 4 Experienced Investment Professionals
  including Specialist Debt Portfolio Manager and
  Private Equity Manager/Financial Modeller
• Plus
• Executive Assistant
• Investment Accounting
• 3 Experienced Accounting Personnel

? The Investment Capital Management Team is
assisted by its consultant advisers Mercer
Investment Consulting and Russell Investment Group
121
KEY OBJECTIVES

• ? To maximise the performance of the Investment
  Portfolio within given risk parameters.
• ? To manage and grow the Universitys capital
  adequacy (i.e. Discretionary Funds) in a way that
  promotes financial sustainability.
• ? To ensure financial risk within the Balance
  Sheet is managed in a prudent manner.
• ? To engender a more commercially oriented
  approach to investment matters generally across
  the University.

122

• INVESTMENT FUNDS
• PORTFOLIO FUNDS
• PORTFOLIO STRUCTURES

123
COMPOSITION OF PORTFOLIO FUNDS
Total Portfolio Funds 1,073m
37
63
Long Term Funds 757m
Short Term Funds 316m
? Full-Fees ? Bequests Endowments ?
Consulting ? Capital Preserved Trusts (CPTs)
? Research Grants ? Foundation Funds ? Other
Grants ? Discretionary Funds ? CDP Funds
? Provisions (e.g. LSL) ? Govt Money Recd
In-Advance ? Dept Operating Funds ? Special
Reserves ? All Short Term Funds are invested in
Debt ? Long Term Funds (excluding
Investments (i.e. STMM Fixed Interest)
Foundations) are invested 70 in
Growth Assets/30 in Fixed Interest
124
COMPOSITION OF PORTFOLIO FUNDS
Total Portfolio Funds Short and Long Term
125
TOTAL INVESTMENT FUNDS 31 DECEMBER 2005
Market Value M
of Total
Debt Investments Fixed Interest Money
Market Bank Sub total Growth Investments Growth
Pool Equities Australia Equities
International Hedged Unhedged
Property Securities Sub total Share
Pool Direct property Total Growth
Investments TOTAL PORTFOLIO FUNDS Other
Investments Non Portfolio Investments Private
Equity Farms Student Housing Associated
Entities Loans Sub total TOTAL INVESTMENT FUNDS
399 224 7 629 189 11 113
34 347 82 14 443 1,073 13 49 4 66 1,139
35 20
1 56 17 1 10 3 30 7 1 39 94
1 4 lt1 6 100
126
COMPOSITION OF INVESTMENT FUNDS 31 DECEMBER 2005
Growth Investments
Debt Investments
Total Investment Funds
127
Growth Pool Structure
Presently Weight Aust Equities 55 Internationa
l Equities 35 Property Securities 10
Likely by End - 2006 Weight Aust
Equities 50 (Incl. Long/Short Mgr) International
Equities 32 Property Securities 8 Alternative
Assets 10
Prior to November 2005, fully unhedged. Current
strategy is to place all new cash flow into fully
hedged product.
128

• INVESTMENT PERFORMANCE

129
TOTAL PORTFOLIO FUNDS BENCHMARK
Current Positioning
STMM 50
Overweight
Total Short Term Funds
Fixed Interest 50
Underweight
Total Portfolio Funds
Fixed Interest 30 (37)
Neutral
Total Long Term Funds

• Growth Assets 70 (63)
• 55 Aust Equities
• 35 Int. Equities
• - 10 Property Securities

Slightly Underweight (Recent property Sales)
Figures in brackets represent adjustment after
allowance for Foundations
130
INVESTMENT PERFORMANCE 31 DECEMBER 2005
Asset Sectors
131
INVESTMENT PERFORMANCE OTHER PERSPECTIVES
132
INVESTMENT PERFORMANCE OTHER PERSPECTIVES
133

• RISK MANAGEMENT
• FRAMEWORK

134
RISK MANAGEMENT

• ? Presently, no derivatives. This may be working
  against achieving return objectives.
• ? Presently no borrowings. Funding Campus 2010
  likely to change this. Procedures in place.
• ? Short term money market portfolio average
  credit greater than A1. Overexposure to NAB pared
  back.
• ? Fixed Interest portfolio credit exposures more
  diversified and based upon SP ratings.
• ? Maximum Placement with external managers in the
  Growth Pool limited to 15 of pool market value.
• ? Growth Pool Managers performance and compliance
  monitored quarterly by consultant advisers and
  the University Investment Capital Management
  Team.

135

• CAPITAL ADEQUACY

136
DISCRETIONARY FUNDS

• ? Represent free funds and are similar in
  nature to equity capital TIER ONE CAPITAL.
• ? Indicator of the Universitys capacity to both
  withstand major shocks and to undertake
  significant expansion.
• ? As at end December 2005 stood at 160m. This
  compares with 67m as at end December 2000.
• - - - - - - - - - - - - - - - - - - - - - - - - -
  - - - - - - - - - - - - - - - -
• ? Reserves represent tied capital
  accumulated within the Colleges and can be viewed
  as a second layer of capital protection TIER
  TWO CAPITAL. As at end December 2005, Reserves
  stood at 139m.

137
DISCRETIONARY FUNDS THEN AND NOW
138
DISCRETIONARY FUNDS SOME RATIOS
Actual (Based on End-2005 Data)
Suggested Comfort Zone Level

• of Annual Operating Margin 179 gt100
• of Annual Current Liabilities 108 gt100
• of Net Assets 5.3 gt 5
• of Annual Capital Expenditure 168 gt100

139
KEY PRIORITIES FOR 2006
Status
140

• QUESTIONS

141
Thank you