Finance Forum- July 2013

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Our key priorities Focus on ‘customers’ and ‘controls’ We are aiming to implement significant improvements to our processes and systems We have a key role in establishing a strong financial control environment Customers Controls

Process improvements: ‘customers’ Student fee flow: fee collection and debt chasing Purchase to payment cycle: the systems of buying goods and services and paying suppliers Strategic procurement: how can we purchase what we need at a lower cost Pensions and payroll: delivering according to new legislation and in a more efficient and effective way

Supporting decision making High quality financial information College Management Accountants Excellent taxation advice Technical experts (e.g. for the changes to UK GAAP) Costing information and TRAC Strategic approach to pensions provision

A strong control environment Effective and constructive relationship with internal and external auditors Strong controls over key risk areas – bank accounts, debt collection, payroll, procurement and supplier payments Effective financial regulations

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Scope of Financial Forecasts 5 year forecasts Forecast for this year 2012/13 Budget for next year 2013/14 Plan for 2014/15, 2015/16, 2016/17 Include college plans Submitted to HEFCE

What is a Financial strategy? Have enough money to meet our strategic objectives Bring in enough income to –Pay for stuff we need to operate –Pay for stuff we need to grow

Financial strategy Generate sustainable and sufficient surplus to support research and teaching mission – move over planning period from 2% to 5% Incorporate high priority developments Have in place appropriate and prudent loan portfolio Maintain prudent cash flow

Operating surplus trend

Compared to Russell/1994 Group 11/12 12/13 15/16

Projections of income

£41 m £17.5 m £18 m £30 m

Risks and opportunities Key risks –Competitive position –Further HEFCE cuts –Home / EU recruitment –Overseas recruitment –Other income –Cost control not achieved Opportunities –AAB  ABB –Overseas recruitment –Fundraising –REF 2014

Summary We continue to have a strong position Challenges continue in respect of income growth and cost control We are continuing to invest Good opportunities in the medium term

Any questions

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Auto-Enrolment PAS – Change of Service Provider Fees Payroll closure Employee Self Service (ESS) Real Time Information (RTI)

Auto-Enrolment April – USS –116 existing staff auto-enrolled –73 opt-outs June – FriendsLife –501 existing staff / casuals auto-enrolled –Opt-out period currently live – 55 opt-outs to date –New starters – 3 months postponement period

PAS – Change of Service Provider End of contract with Capita. EU tender Appointed Aon Hewitt w.e.f. 1 st July 2013 New approach – PAS members to deal directly with Aon Hewitt Development of online information to be launched later in the year

Fees Payroll closure University decision driven by RTI and Auto-enrolment Casuals formerly paid through the Fees Payroll now paid through Unitemps. Some fixed term contracts offered Some casuals assessed as self-employed. Process agreed by Finance / Tax Unit Finance / HR meet weekly to resolve issues Being led by HR – Rose Lindsay & Lindsey Burgess

Employee Self Service (ESS) Launched early in 2013 Ability for staff to: –View payslips online –View and amend personal details online Future Developments –Move to online only payslips for monthly paid staff

Real Time Information (RTI) From August 2013 Applies to all payrolls Payroll information to be sent to HMRC after each payroll run instead of annually

Any questions

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Systems Developments Purchase to pay (“P2P”) Project focuses on developing an automated SAP electronic purchasing and payables system Facilitated by cross departmental workshops involving 5 pilot departments (3i, CPP, BioChem, Chemistry and IT)

Why P2P? Allows individuals to instantly order the goods Significantly reduce the people and paper that moves around the University and duplicated approvals All purchases will have SAP purchase orders Cost saving achieved through better purchasing and reduced administration Increase the speed and accuracy of the purchasing cycle Better financial information available

P2P plan 5 pilot departments to go live Autumn 2013 Systems development Communications, demos and training Supplier engagement University wide roll out

Other systems development Clean Fees Flow – student portal, fees and debt recovery Future projects –Distance learning –Student experience –User focused System and Process training –Expenses automation (2014)

Any questions

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Change of Bank: 6 August 2013

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Internal Services Requirement to use internal services –Catering –Conference facilities (including College Court from September 2013) –Print Service and AVS –Unitemps

Gifts & Hospitality From October 2013 (following approval by Finance Committee) Proposed changes to regulation in response to feedback from Bribery Act seminars Greater clarity of rules, and greater direction in respect of the provision and receipt of gifts and hospitality

Review of Financial Regulations Six years since last comprehensive update Review to take place during AY 2013/14 New CIPFA guidance on Financial Regulations for HEIs

Agenda Structure of Finance Office (MR) University Financial Position (CP) Pensions Developments (GH) Systems Developments (RG) Change of bank (CP) Financial regulation changes (GH) AOB Note- Sept slides from MR & GH left in for you to sort out

Any questions