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Financial ServicesNewsletterISSUE 09march 2012
as you may be aware, in 2011 the University launched several programs to support
the implementation of the University of Sydney 2011-2015 Strategic Plan. These programs include the administrative services reform (currently in the benchmarking phase), awarding the construction tender of the charles Perkins centre to Brookfield multiplex, and securing a $500 million line of credit facility to fund major capital works.
Financial Services continues to play a major role in assisting the University’s senior management in implementing these programs. We are working closely with other service portfolios, such as Information and communications Technology, human resources and campus Infrastructure and Services, to align our services in the most effective manner to support the University’s core activities of learning, teaching and research, whilst supporting the implementation of the strategic plan.
much was achieved in 2011, across key projects within Financial Services. The University Economic model (UEm) moved into production and is now embedded in the University budget; improvements were made to the reporting structure to split tied, discretionary and support funding, and the unitisation project was launched which will enable much more timely reporting on investment accounts. Our main initiatives for 2012–15 include the completion of the Financial Services restructure, on-going refinement of the UEm, further development and implementation of the
procurement category strategy and the introduction of a new corporate card model.
Further to the recent finance staff forums, you would be aware that we are nearing completion of the change plans for Financial Services Faculties/Divisions, corporate Finance, Financial management and analysis, and Strategic management and analysis. The objectives of these change plans are to improve and align our teams to better service the needs of our clients whilst improving compliance with internal and external policies. While we believe these changes are necessary, we are also committed to assisting and supporting staff through the change, particularly those that are being redeployed.
On a sad note, we received the news of the passing of Jimmy Fong, associate Director Finance, Faculty of arts and Social Sciences. Jimmy was very well respected both within central finance and the faculty. Jimmy’s wife, rosie Fong, would like to send her heartfelt thanks to people who sent messages of support and to those who attended the funeral.
I anticipate that 2012 will be another challenging but rewarding year, and I again ask for your continued professionalism and support as we build a stronger Financial Services team.
marK EaSSON chief Financial Officer (cFO) Office of the chief Financial Officer, Financial Services
mESSagE frOm thE cfO
IN thIS ISSUE
01 mESSagE frOm thE cfO
02 marK YOUr DIarY: fINaNcIal SErvIcES cONfErENcE 2012
02 SYDNEY StUDENt 2012
03 UNItISatION PrOJEct UPDatE
04 INvEStmENt aND caPItal maNagEmENt (Icm) UPDatE
04 chaNgE IN POlIcY maNagEmENt
05 PrOcUrEmENt SErvIcES UPDatE
06 traININg UPDatE
06 NEwS IN brIEf
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SYDNEY StUDENt IN 2012
for any questions or further information, please contact:
JO faIrlEY communications manager, Sydney Student t 02 9351 1545 | E [email protected]
The Sydney Student Program begins 2012 with a focus on planning for the year’s two major ‘go lives’: the unit of study selection and enrolment pilot with the Faculty of arts and Social Sciences in may, and the rollout of related core student administration modules University-wide in September, including tools for fee, finance and fund management.
From 2013 students will carry out tasks such as enrolment, paying fees, checking exam results and accessing timetables through their integrated and personalised online Sydney Student portal.
Student financial interactions with the University will be administered through a single, online system. Students will use their portal for viewing and paying tuition fees and student loan repayments.
This year will see the release of the fee matrix setup and maintenance, calculation and display of fees, tuition and non-tuition fee billing process, fee distribution, student debtor ledger and debt management, receipting module, reimbursements module, International Office processes, variations to student financial records and Department and Education, Employment and Workplace relations reports. Fund management functionality will include setting up a new fund, applications for financial aid, all-purpose scholarships, advertised bursaries, and student loans. These functionalities will support and be integrated with other online administrative processes, including enrolment, timetabling and unit of study results.
Implementing a new student management system presents the University with opportunities for standardised processes and improved reporting. Efficiencies can be found in moving paper-based processes online, minimising double-handling and replacing the various satellite databases, allowing staff to focus on providing meaningful advice to students.
Staff involvement in the design and implementation of Sydney Student is essential for the program’s success. Finance staff are becoming increasingly involved in the project as the development of the finance functions reach a peak of activity. all staff can contribute feedback and subscribe to the weekly email through the Sydney Student website.
marK YOUr DIarY!fINaNcIal SErvIcES cONfErENcE
JUNE 2012The annual Financial Services conference will be held at the University on thursday 14 June at the New Law School Building, camperdown campus.
masterclass sessions will also be held on wednesday 13 June at the same venue.
Further information and registration details will be sent by email in early may.
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most of the development work for the project has now been completed, and the initial composition of the new investment pools has been determined, so that investment assets can be restructured to match the new long-term fund (LTF) and medium-term fund (mTF) source of funds for full unitisation. We are currently in the detailed testing stage and the expectation is that the system will go live in either april or may.
NEw POrtfOlIO SUmmarY aND traNSactION DEtaIlS rEPOrtS
The new Portfolio Summary and Transaction Details reports will be available in hyperion once testing has been completed and the transition to the new funds is made. Training will be provided to staff on how to generate these reports, which will complement the reports currently available, and will provide market values of investments and a history of transactions.
SPENDINg allOcatION
The allowable spending allocations of five percent for LTF and three percent for mTF, from parent to child accounts, will be processed in January/February each year. The final figures will be determined by the market value of the units of investment. a 0.4 percent standard administration fee will be charged at the same time as the cost of managing these funds. This will result in a reduction of the previous final December value of 5.4 percent for the LFT and 3.4 percent for the mTF, and will be collected through the redemption of units. This redemption will appear in the Portfolio Summary and Transaction Details reports in January/February each year.
aPPlIcatION, rEDEmPtION aND bUSINESS caSE fOr hIghEr SPENDINg fOrmS
The application, redemption and business case for higher spending forms have been created, and are now available from Financial control and Treasury.
a completed application form must be submitted for all new financial gifts received. The initial investment will be placed in a holding account within short term funds, until the gift administration officer has:
– verified the end use and recipient area for a gift
– determined the annual expenditure of the gift
– proposed and had approved by the Gift administration Board any University conditions in relation to the gift.
Once these matters have been worked through, a parent/child account will be set up for each of the gifts received and the funds will be processed accordingly.
redemption requests for higher spending must be supported by a business case, which has been reviewed and approved by the Gift administration Board. In these cases, both the redemption and business case forms must be completed and submitted. Full guidelines outlining the redemption process can be found on the business case form.
Please note that there will be an investment freeze period for applications and redemptions from now until the new funds are properly established, followed by system testing to ensure the correct composition of investment assets.
To request a copy of the forms, please email either [email protected] or [email protected].
for any questions or further information, please contact:
grEg fErNaNcE head of Investment and capital management t 02 9351 2215 | E [email protected]
KUbra chambErS Director, Financial control and Treasury t 02 9351 4884 | E [email protected]
UNItISatION PrOJEct UPDatEbY JOhN POwEr, accOUNtINg maNagEr, fINaNcIal cONtrOl aND trEaSUrY
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INvEStmENt aND caPItal maNagEmENt UPDatEInvestment and capital management (Icm) is charged with managing the University’s endowment and trust assets, investment funds and commercial real estate investments. all University funds invested in debt securities are managed internally by Icm, whilst funds invested in growth assets are managed externally by professional sector specialist managers. Icm is also supported by an external consultant adviser.
Given the perpetual nature of the University’s donated funds, Icm seeks to generate an optimal risk-adjusted total return through the employment of a structured long-term investment philosophy, based around strategic asset allocation targets.
lONg-tErm ENDOwmENt (ltE) fUNDS PErfOrmaNcE IN 2011
The University’s LTE funds generally consist of bequests and endowments. 2011 was mostly a negative year
for most growth-orientated asset classes. The morgan Stanley capital International World (ex-australia) accumulation Index (hedged) closed the year 1.9 percent lower, and the australian equity market ended 2011 down by 11.0 percent. These outcomes reflected the ongoing concerns surrounding the European debt markets and the associated downturn in economic activity within the region. Uncertainty surrounding growth in china and america also weighed on investor sentiment for most of the year. In the latter stages of the year, however, positive economic data emerged from the america, and the fear of a chinese hard economic landing abated.
The return on the University’s LTE funds was above the relevant New South Wales Treasury corporation hour-Glass Facility, and the internal approved benchmark over the one and three-year periods.
for any questions or further information, please contact:
grEg fErNaNcE head of Investment and capital management t 02 9351 2215 | E [email protected]
chaNgE IN POlIcY maNagEmENtIn February the University of Sydney (Policies Development and review) rule 2011 and its associated procedures came into effect. The rule defines the University’s policy framework, which consists of four main types of documents.
1. Policies: mandatory statements of the principles guiding the University’s operations & decision-making.
2. Procedures: mandatory statements of the University’s standard and required practice. They provide for the way in which the principles set out in policies will be implemented.
3. local provisions: binding statements of principles applicable only within a particular faculty, academic college or administrative unit.
4. guidelines: advisory and explanatory statements offering any or all of detail, context or recommendations for good practice.
Not all of our current policy documents use this terminology, but we are working to review them and bring them up-to-date. The new rule also requires that, before a new policy is developed or an old one amended, a policy proposal has to be approved by General counsel. responsibility for drafting and preparing the new policy will remain with the relevant operational area, as it is now, but the Policy management Unit is available to assist. Forms and document templates can be downloaded from the Policy website.
as part of this overhaul, Policy Online has been replaced by the Policy register. The register contains the official version of all University policy documents, including the policies and procedures within the Finance and accounting manual, which must be registered to be enforceable.
for any questions or further information, please contact:
KErrIE hENDErSON University Policy manager Office of General counsel t 02 9036 9049 E [email protected]
Notes:1. The University’s performance returns are after underlying external manager fees and equivalent
NSW Treasury Corporation administration fees. They are inclusive of franking credits.2. The NSW Treasury Corporation manages the Hour-Glass Long-Term Growth Facility, and is
comparable to the University’s long-term funds in nature. The facility’s returns are after fees.3. Past performance is not a reliable indicator of future performance.
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PrOcUrEmENt SErvIcES UPDatE
cOrPOratE carD rEvIEwProcurement Services has begun a review of the policies and procedures for the use of corporate cards, with the aim of reducing the total number in use and establishing criteria that balance the need for tighter management of credit card procedures with the convenience their use provides to staff.
more than 3000 corporate cards are currently distributed across the University. an internal audit report completed in march last year identified a number of problems with the corporate card program, and recommended some much-needed reforms.
analysis found that the University was paying bank fees for cards that were barely used: 16 percent of cards had expenditure of less than $250 for nine months to October 2011. Benchmarking also found that Sydney had more cards in use than other Group of Eight universities, and was too reliant on them as a way of managing purchasing and procurement.
as a result of this audit, Senate asked the University to tighten procedures relating to the issuing and management of corporate cards.
In December, the Senior Executive Group approved a new strategy for the card program, with the aim of reducing the number of cards in use by approximately half. This strategy segments travel and non-travel related expenditure, and introduces other payment methods to meet the needs of infrequent users.
Faculty and portfolio finance directors are currently developing proposed criteria for the allocation of cards to ensure that those who need them, including regular travellers, will be able to retain them. When the model has been developed to an appropriate level of detail, the broader consultation process will be undertaken.
for any questions or further information, please contact:
fINaNcE cOmmUNIcatIONS E [email protected]
NEW TITLE FOr hEaD OF PrOcUrEmENT SErVIcESharry Banga’s title has recently changed from Director, Procurement Services to chief Procurement Officer (cPO). The position continues to report to mark Easson, chief Financial Officer, due to its close alignment with finance and its key responsibility of delivering cost savings to the University.
harry leads a team of 32 staff, who are developing innovative and successful strategies to deliver savings across the University in areas including travel, print, telecommunications, image and copy devices, major equipment and capital works. The team has been given industry-wide acknowledgement for best practice, forging itself as a leader not only in australia but internationally.
as a whole, the procurement sector within australia is rapidly maturing, bringing it closer in parity to the United Kingdom and the United States. Organisations such as Qantas, rio Tinto and Sydney Water have each appointed a cPO as part of their procurement strategy. The University now leads the tertiary sector as the first university in the southern hemisphere to appoint a cPO.
It is expected that a key benefit of this appointment will be that business partners, clients and suppliers to the University will develop a high level of confidence knowing that a ‘c’ suite position is looking after fairness, transparency, and value when interacting with the University.
Further recognition of the University’s procurement function at a regional and local level is evident with the recent appointment of associate Director, Sarah collins as chair of the New South Wales chartered Institute of Purchasing and Supply.
for any questions or further information, please contact:
PrOcUrEmENt SErvIcES t 02 9114 0963 | E [email protected]
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fINaNcIalSErvIcES
fOr mOrE INfOrmatION cONtact thE EDItOr
lOrraINE SYNIUtaInternal communications and Design Officer Office of the chief Financial Officert +61 2 9351 7706f +61 2 9351 8645E [email protected] sydney.edu.au/finance
Produced by Financial Services, the University of Sydney, march 2012. The University reserves the right to make alterations to any information contained within this publication without notice.
hUmaN rESOUrcES (hr) UPDatE
Visit the hr website for the latest information on:
– pay days and pay close-off dates
– earning codes and rates for casual timesheets.
For any questions or further information, please email the hr Service centre on [email protected]
lUNchtImE SOcIal SPOrt cOmPEtItION: tOUch fOOtball
Financial Services has a touch football team competing in the Sydney Uni Sport & Fitness lunchtime social sport competition. The team is called ‘Beauty and the accountants’ and comprises of members from both central and faculty finance.
The team plays on Fridays at 12pm at the Square near the arena Sports centre (weather permitting!), so feel free to come and support the team!
NEwS IN brIEf
NEw hYPErION cOUrSE
a new hyperion course, ‘hyperion academic researcher reports – hr103’, is currently in development. The course is primarily directed at academics and researchers who require basic hyperion access to view their reports online. The course duration is 30 minutes. Visit careerPath to see the course outline and register for classroom training.
SPENDvISION traININg
Procurement Services is currently working with Information and communications Technology to build and develop online training for Spendvision and corporate card. Three draft Spendvision online training
modules were recently piloted with a user focus group, whose feedback has now been incorporated into the draft modules. We anticipate that the online training will go live in the next few weeks, and will be made accessible to staff through careerPath.
as an interim measure, ‘Spendvision card and travel – SPc100’ face-to-face training continues to run, but is limited to only those staff that are embarking on travel for University business purposes.
hYPErION aND PEOPlESOft traININg aND SYStEm accESS
Please ensure you are aware of the current processes in place to manage PeopleSoft and hyperion interim training and system access whilst the online training model is being developed and built. For full details visit the finance training News website.
traININg UPDatE Staff carD bENEfItS PrOgramThe Staff card Benefits Program offers staff a huge selection of discounts for products and services, as well as an extensive range of free entry competitions. Staff are also able to improve their health and wellbeing on campus through a sustainable and healthy weight-loss program.
wIN a famIlY brEaK IN thE blUE mOUNtaINS
Explore the Blue mountains with your family or friends with two nights accommodation in a family room at the award-winning Blue mountains Yha in Katoomba. all you need to do is answer a simple question to submit an entry in the draw. Visit the online promotions page now. Please note the competition closes for entries on 6 april.
wEIghtwatchErS at wOrK
Three groups with 51 members were convened from September 2011 and met in mallett Street and camperdown/Darlington campuses. During the initial 13 week program, the 51 participants collectively lost 210 kilos in total (average weight loss of 4.11 kilos per person). New participants can join the program from april onwards.
for any questions or further information, please contact:
mIrIEl hObbS Staff card Benefits Program manager, campus card Services t 02 9114 0782 E [email protected]
for any questions or further information, please contact:
