Finance Campus Briefing. July 2016

Transcription

1 Finance Campus Briefing July 2016

2 Agenda Logistics Technology Procurement Update Concur Fringe Benefit Tax (FBT) Finance Portal & Website Finance Training & Advisory Project / Class and Department Enquiry Expenditure Policy Panel Discussion

3 Logistics Technology Jeff Bowman Procurement Manager

4 Keyless Entry Technology Pick up and drop off your car using your mobile phone From 1 September all fleet vehicles will be fitted with keyless entry technology Where possible, existing bookings will be transferred to new system Bookings will be made on Pool car system and GUVMS will be decommissioned Users will be required to register the first time they use the new system Communications will be sent to all persons that have booked a fleet vehicle in the last 12 months and to those with upcoming bookings

5 Keyless Entry Technology Search for a vehicle or pool with someone else

6 Procurement Group Jeff Bowman Procurement Manager

7 Procurement Update Griffith spends ~$270M p.a. on goods and services Spend is spread across nearly 6,000 different suppliers Less than 13% of the total spend is spread across 90% of supplier base Over 89% of suppliers have an annual spend of less than $5K Why do we have so many suppliers? Requesters have no means to match needs of internal clients to existing Griffith suppliers Solution: provide users an easy to use tool that allows them to match their need to existing suppliers

8 Supplier Search Tool Objective: match users needs with existing Griffith suppliers Provides users ability to search either by category or supplier Returns details required when making a web request (e.g. Vendor ID) Identifies Griffith Marketplace suppliers (i.e. catalogue suppliers) Goal: rollout tool at the end of August To be located on the Staff portal>finance>supplier Search tool

9 New Process for Vendor Adds Problem: Vendors added to system without proper vetting leads to suppliers who add little to no value for University. Solution: Vendors will be required to fill-out and sign vendor add form. What s changing: Anyone submitting an invoice to pay a supplier not in the system will be required to contact the vendor and have them fill out the form Vendors will then follow the submission directions on the form Purchasing will review submission before adding a supplier to the system Result: suppliers added to the system meet the needs of University at large

10 Travel Update Moving to AMEX for Ghost Card transactions Facilitates booking accommodations and rental cars online via e-res Roll out planned for end of July Will announce go-live soon

11 Travel Update con t Griffith considering going to market for new Travel Management Company (TMC) Why? o Client Feedback o Opportunity to reduce number of TMCs from two to one o Reduce transactional cost o Potential to leverage off of better airline rates The only way to fly!

12 Concur- Expense Management System Fiona Marino Training & Advisory

13 What is Concur? Concur is Griffith University's new Expense Management system Is available to all active staff and students Is available online, mobile or tablet Concur is fast, secure and easy to use Currently replaces the manual processes in multiple systems; PeopleSoft, Promaster, Cashiers

14 Use Concur to submit: Services Expense Claims Cash Advance Requests Mileage Corporate Cards/expense cards Lodge your expense reimbursements claim Request and acquit a cash advance Claim your personal vehicle mileage (refer to dept. policy on mileage) Acquit your Griffith card purchases

15 What is ExpenseIT? An application that captures receipts into expense reports using optical character recognition Take a photo of the receipt from the application on your mobile phone/tablet and send to Concur Or forward receipts to receipts@expenseit.com and Concur will start completing the Expense Report for you.

16 Concur Usage Currently 1,172 people have configured their profile 1,230 people have confirmed bank details Currently receiving 30 s a day for assistance Currently receiving 30 phone calls per day for assistance Monthly Concur training and information sessions are being conducted

17 What to do next? Log on to Concur via the single on and complete the instructions in the Getting started user guide to configure your profile settings; Update bank account Update and add addresses Add default speed type Add delegates giving them appropriate delegation rights Add personal car details

18 FAQ s for Concur What is the difference between a red exception icon and a yellow exception icon? A report cannot be submitted if it has any red exceptions read the messages and clear the exceptions before you submit the report. If there is a yellow exception, review the warning or instructions. You are still able to submit the report without clearing this type of exception.

19 FAQ s for Concur How long will it take before I receive my reimbursement in my bank account? Your reimbursement will be deposited into your bank account within 3 working days of your Expense Report being approved by Finance. Why do I have to itemise my receipts? Why can't I put all my receipts into a single file and enter a single expense? Itemising your receipts speeds up and automates the identification of duplicate receipts and prevents fraud. By itemising receipts line by line, an automated process can be run over the receipts in Concur to ensure that the same transaction has not be claimed multiple times.

20 FAQ s for Concur I can t see the speed type and class when approving expenses? You must open the expense report and look at the individual receipts that have been assigned against the speed type. My receipt has the wrong value / currency in the amount field? All fields can still be overwritten when you are adding the receipt to a report in Concur - even the amount field can be corrected.

21 FAQ s for Concur Do I have to list every attendee at an event? Less than 20 persons users are required to individually identify the Attendees. Please use the Advanced Search option to search for and add Employees. Please use the New Attendee option to add Business Guests or Spouse/Partners. Where you do not know the name of the Guest, you may provide a generic name e.g. Name 1 Exceeds 20 persons users must enter at least one name in the Attendees list. You may then provide further information about the event and the Attendees in either the comments field or as an attachment. This information must include: a breakdown of the number of staff, associates of staff (spouse/family/friends), business guests and the total number of Attendees.

22 Concur Support Phone: x55510 Log in at; griffith.edu.au/concur Find user Guides at; Griffith.edu.au/concur-userguides Tutorials/Videos

23 Fringe Benefits Tax (FBT) Hilda Yu Tax & Assets Manager

24 FBT Introduction What is a fringe benefit? A benefit Provided in respect of employment To an employee (including associates) By an employer (including arrangers) Excludes salary & wages, superannuation and most payments through Payroll. Employee s associates includes family & friends Employer s arrangers include NLC & Leaseplan A tax paid by the employer FBT Period: 1 April to 31 March

25 Formula & Rates FBT = Taxable value x gross-up rate x 49% Taxable Value = determined by each category of fringe benefit FBT Year FBT Rate Type 1 Grossup Rate Type 2 Grossup Rate Ending 31 March % Ending 31 March 2016 & % Ending 31 March % FBT effectively doubles the cost of the benefit provided.

26 Example GU provides a staff with a bouquet of flowers which costs $66 and a watch worth $330 for 5 years of service. (all amounts are GST inclusive) This gives rise to a property fringe benefit. Flowers and watch will be treated as a single benefit as it relates to the same occasion. FBT = Taxable value x gross-up rate x 49% = $396 x x 49% = $ payable to the ATO FBT effectively doubles the cost of the benefit provided Cost of benefit= $396 FBT = $416 Total cost of providing the benefit = $812

27 Entertainment Entertainment means Entertainment by way of food, drink or recreation; or Accommodation or travel to do with providing entertainment by way of food, drink or recreation. Examples: business lunches, social functions Excludes: Meals on business travel overnight, light refreshments or finger food during biz hours on GU premises GU premises excludes food outlets operated by GU (e.g. G s Wine Bar) because it is open to the public. The entertainment test: 4 factors Why the purpose What type of food e.g. finger food, elaborate meal, alcohol When during business hours or outside of business hours Where on-site or at a restaurant

28 Finance Website Finance website: Go to the top right tile: Budgets, Reports & Financial Control and select Taxation

29 Entertainment Decision Tree This decision tree is a guide only. Various factors will need to be weighed in order to determine whether FBT applies. The decision tree covers questions such as: is the staff member travelling? is the event a seminar, conference, workshop or lecture? Was it </>4 hours? was alcohol provided? This decision tree will direct you to a scenario or scenarios (i.e. the yellow boxes) which would determine whether FBT applies or not.

30 Concur: Entertainment Example using Concur: An academic staff member has travelled to Sydney for a 2-day conference and his spouse has accompanied him. They have dinner together before heading back to Brisbane. Total cost of dinner = $90. The employee s meal will not be FBTable as he is travelling for work. Scenario D applies: Meals while travelling staff. The relevant account code = Account The spouse s meal will be a private expense, treated as meal entertainment and subject to FBT. Scenario C applies: Meals while travelling non staff. The relevant account code to use for the spouse s meal = Account In Concur, enter the expense for the dinner of $90 using the Entertainment Expense Type. You will be prompted to enter attendee details and status. Two attendees will be required to be added: Attendee Status FBT? Employee Travelling No 3462 Spouse/Partner Travelling or Not Travelling Yes 3162

31 Exemptions Minor & infrequent Taxable value (inc. GST) must be < $300 Very limited application for entertainment benefits and usually does not apply. Take note of this especially when buying gift cards or other presents for staff Q & A fin-tax@griffith.edu.au Please take note of the University s Hospitality Policy:

32 Finance Portal & Website Fiona Marino Training & Advisory

33 Staff Portal> Finance

34 Staff Portal> Finance>Finance Website

35 Training & Advisory Fiona Marino Training & Advisory

36 Finance Induction Training Finance Induction training will be held monthly at the Gold Coast and the Nathan campuses for all staff. The two hour session covers transactional services; Payment requests Purchase requests Adding an invoice Reimbursement request Generating a domestic and or international travel request Track your request

37 Finance Training Dates Finance website> Other Services > Finance Training & Advisory > Finance Client Training

38 Contact Training & Advisory For all Finance Training support on transactional services and portal navigation please contact X fin-clienttraining@griffith.edu.au

39 Project / Class and Department Enquiry Sue Smith Group Resource Manager

40 Actual Budgeted Variance Carry Forward cash Balance: 50,000 50,000 - Income: Operating including fees: Research: Consultancy/Other: 4 45, , , Other: Total Income: 45, , , Transfers From/ To: 40, , Total Income & Transfers: 85, , , Expenditure Salary Non Salary - 100,000-64,000-36,000 Total Expenditure -100, , , Net Annual Activity: -15, , Contingency/Unallocated: Pre Cash Balance: -15, , Encumbrances Salary: Non Salary: Total Encumbrances: BALANCE -FUNDS AVAILABLE: SURPLUS: 35, Department & Project /Class enquiry has changed! 1 Carry Forward has changed names and position. Now shown at bottom of screen as Opening Position and the funding is added to the expenditure budget. 2 Some nomenclature has changed. 3 Transfers now included as part of the expenditure budget Going forward an Expenditure Budget can contain: - Opening position - Approval to spend nominated amount (in past was shown as transfer - Budgeted Income. Essentially Expenditure Budget contains the approved amount to spend. Purchase of assets > $5K will be shown separately Balance Funds Available now shown as Surplus / (Deficit) Post 2016 Actual YTD Budgeted Full Year Variance Income: 2 CGS & Fee Paying Contracts & Consultancy Research 45, , , Other Risk Contingency Total Income: 45, , , Expenditure Salary Non Salary 1-100, , , Unallocated Total Expenditure -100, , , Net Income / (Expenditure): -55, , , Encumbrances Salary: 0.00 Non Salary: 0.00 Total Encumbrances: Full Year Budget Unspent/(overspent) 35, Assets: Property, Plant & Equip/Intangibles Surplus / (Deficit):* 35, Opening Position: 50,

41 Example: Surplus returns project 1 Opening position of $50K Previously Carry Forward. Opening position also added to Expenditure Budget Actual YTD Budgeted Full Year Variance Income: CGS & Fee Paying Contracts & Consultancy Research 45, , , Other Risk Contingency Total Income: 45, , , Expenditure Salary Non Salary 6-100, , , Unallocated 0.00 Total Expenditure -100, , , Net Income / (Expenditure): -55, , , Encumbrances Salary: 0.00 Non Salary: 0.00 Total Encumbrances: Full Year Budget Unspent/(overspent) 35, Assets: Property, Plant & Equip/Intangibles Surplus / (Deficit):* 35, Opening Position: 50, DVC awarded citation $40K Previously shown as Transfer and now added to Expenditure Budget. Budgeted income $24K Budgeted Expenditure = Opening position $50K + DVC citation $40K + Budgeted Income $24K = $114K Actual Income $45K Actual Expenses $100K Surplus/(Deficit) = remaining amount available

42 Accrual Accounting and its impact

43 When I drill down into my project why are there in and out entries with the narrative accrul Salary? A key feature of the new University Budget model is Accrual Accounting, which means that expenses and revenues are recorded in the period they occur, whether or not cash is involved. Accrual Accounting provides a better picture of Financial Performance, greater relevance, comparability and allows for better tracking of historical trends. ACCRUALS Expenditure incurred in a period for which the cash payment has not yet been made ACCRUED INCOME Income earned/services performed in a period ahead of the timing of the cash receipt PREPAYMENTS Expenditure paid for in advance of the period to which it relates/will be consumed DEFERRED INCOME Cash received in advance of the income being earned/service performed Minimum thresholds: Accruals are not applied to non salary expenses <$1K and/or salaries $50/day Exemptions: Travel, conferences & accommodation

44 Some examples: Payroll cut off timing: Salary costs per fortnight = $10K (or $1K per working day) F1 F2 Month 1 (23 working days) M T W Th F Sa Su Under the cash method In month 1 a project would be charged 2 fortnights of salary charges $20K; however the true salary cost for month 1 is $23K (23 working days x $1K). With accrual accounting the correct expense will be charged to the project. F3 F4 Month 2 (22 working days) M T W Th F Sa Su Month 2 (22 working days x $1K = $22K charge to project. Annual $12,000 subscription fee paid on 1 Jan Impact on reporting: Each month will show a net $1,000 as an expense as the $12,000 prepayment unwinds through the year. This places the expense into the correct reporting period.

45 Expenditure Policy Suganthi Sivasubramaniam Head of Business Services

46 Expenditure Policy Expenditure of University Funds policy & guidelines Using University contracted purchasing arrangements or preferred supplier arrangements Business vs personal use Reasonable levels of expenditure Changes to memberships & subscriptions < $900 Head of Element approval > $900 PVC/ DVC approval > 90 days $5,965 June 2016 June 2016 Non compliance instances requiring additional review or pushback Travel $6,002 Memberships $7,099 Membership Why do I need to know this? Travel Non Preferred Supplier Receipts > 90 Days Non PO Purchase Visa Department name (Edit in View > Header and Footer)

47 Panel discussion