1. Chart of Accounts Phase 1 Diane Croxford Finance Division

2. Agenda Objectives for Today Background to Chart of Accounts – Phase 1 What we have done What’s next? Q&A

3. Objectives for Today Review of CoA Phase 1 / Background of Project Results of Phase 1 / What we have done How it will be implemented Documents available CoA Website What’s next / what does it mean for you? Q&A

4. Agenda Objectives for Today Background to Chart of Accounts – Phase 1 What we have done What’s next? Q&A

5. What we heard Account names & descriptions Large volume of accounts, many with similar/indistinguishable descriptions Many PeopleSoft account descriptions are unclear or confusing No further description in codified document to provide explanation of account usage Multiple accounting manuals in use as users have created their own to fill gaps Process clarity & communication What is the process for getting new account opened? Who do I contact? / Who do I ask for assistance? Who are communications sent to? Structural issues Current configuration does not allow for multiple fund streams against one project Rollup of accounts to categories different in PeopleSoft and FIMs Cleanup of old projects, departments and funds long overdue Accounts structure does not allow all user to capture information to the detail they require Specific accounting guidelines Lack of clarity on use of specific accounts such as contractors, contract services Lack of clarity on accounting rules for internal transfers, cost recoveries.. Note: excludes user issues raised that are covered by other workstreams or proposed workstreams (e.g. Roles and accountabilities; account process issues, project accounting) Do these themes ring true? Is anything surprising? Is there anything else you would have expected to see?

6. Internal External (To be reviewed as part of aligning ledgers with 2010 budget model) Focus of initial quick hits exercise Further analysis proposed for Q3 2009 to: Clarify rules for internal transfers Investigate options for providing additional granularity where needed by faculties Lower priority, as ‘quick hit’ type refinements could be managed by users as part of business as usual We propose making recommendations for straightforward clean up activities to leverage the methodology used for the quick hits exercise (Not in scope of quick hits exercise) Context: our initial focus is easy to implement ‘quick hits’ in the expense accounts used by faculties Faculties & Divisions Treasury Financial Control Revenue Expenses B/Sheet Accounts Departments Funds Projects Program Class Business Unit “Chartfields” Used By

7. We are also exploring how the accounts structure can be adapted to give users a greater degree of granularity 7 Better descriptionsAdditional accountsSub accountsProgram codes Meet user needs ? Reduce complexity Ease of implementation* “Quick Hits”Back-up option if sub-accounts not practicals Option and implications to be explored * Taking into account interfaces/reports/forms that may need to be updated, communications and training requirements etc. Preliminary assessment of options

8. Four categories of account code issues addressed in quick hits 8 Not used Account name and description Lack of clear ‘business’ rules Expense accounts have not been used for > 3 years Duplicates Multiple account codes for same type of expense Issue: Many account names are misleading, too subjective, or lack specificity There is no common descriptive guide to provide further clarity Different interpretations / lack of clear guidelines for: Consultants v contractors Contractors v contract services Hire Vs Lease Equipment Exp v asset purchase Implication: Adds complexity at front end as users search through multiple accounts Inconsistent use of account codes impacts reporting and comparability Contributes to volume of posting errors, requiring additional resource to analyse and recode Frustrating for front end users Approach: Recommendations to make specific accounts inactive Recommendations of preferred account to use; others to become inactive Line by line proposals for: Clearer account names (to be updated in G/L) Additional descriptions (to be available on intranet) Include information in Guidelines Document

9. Agenda Objectives for Today Background to Chart of Accounts – Phase 1 What we have done What’s next? Q&A

10. What are the changes? What are the changes? DetailsHowOther 16 Accounts Accounts will made inactive in NS Financials. Accounts Not Used Account Name Changes 72 Accounts Redundant Account & Redirects 45 Accounts Redirects will be renamed in NS Financials Expense currently allocated to “redundant” accounts to be more accurately allocated. These accounts will be “inactivated” in NS Financial under a phased approach Account Name will be amended in NS Financials New Accounts 13 Accounts Accounts Usage Under Review Historical Data to these accounts will remain unchanged. Staff Expenses and Purchase Card Module will be updated in line with changes. Bigger impact on day to day processes & procedures already in place in finance 14 Accounts Use of these accounts will continue to be reviewed so to ensure actual use is in line with intended use. **80 accounts remained unchanged **See Handout for summary list of specific account changes Accounts not used for 2 – 3 yrs Clearer account name & detailed description will improve clarity & consistency of expense allocation Account Number to be amended to documents ( NEW )

11. What are the biggest changes? Redirects - 31Redundant Accounts - 14 Accounts have been used for a number of different expense types, where more appropriate accounts exist. Accounts Used in lieu of suitable alternative due to many accounts, poor account names, lack of descriptions etc Identify expenses currently allocated to these accounts and identity alternative account Consumables Type 2 – 9 NB Consumables Type 1 – renamed to consumables – other remains in the interim as “catchall” account while continued improvements occur. User Feedback is important to ensure we have identified all applicable expense types and they are catered for in the descriptions and/or specific accounts Very similar accounts that are essentially the same type or nature of expense. User Feedback is important to ensure we have identified all applicable expense types and they are catered for in the descriptions and/or accounts Other Clear separation of Contractors( people costs) and Contract Services – Account 6101 Redirect Rep & Maint Expenditure from Consumables & Contract Services Expand Operating Lease to four accounts. Equip, Property, MV & Other New accounts to enhance clarity and consistency in expense allocation and other requirements of the university ie procurement

12. Chart of Accounts Documents Expense Reference Guide – Detailed Descriptions Quick Reference Guide CofA Guidelines Document What? Where? One Page A4 Poster Summary of available accounts by expense category All documents available on Finance Website All documents will be updated regularly for changes & amendments Accounts Summarized by Expense Category Descriptions for each account of type or nature of expense expected to be allocated against account Examples included in description as well as exclusions where appropriate to enhance clarity Inactive & Redirected Accounts are included in first release of document. Some Descriptions to be updated ie travel p/diem p/tax rate What is the chart of accounts and how is it used at UNSW Definition of each chartfield and who is the owner/manager Provide Guidance on specific accounts Review & Feedback Links to forms as well as “ Go to ” contacts Next? What expense types specific to you may be missing? Where do allocate them currently? Do we need a new account? Or to amend description on existing account?

13. Chart of Accounts of the Finance Website www.fin.unsw.edu.au

14. Agenda Objectives for Today Background to Chart of Accounts – Phase 1 What we have done What’s next? Q&A

15. Feedback Whats Next? Reviewing, Refining & Updating the CofA is an ongoing exercise and it will continue to change & evolve to meet the needs of the University User Feedback will enhance this and ensure all user needs are met Form available on Finance Website / Chart of Accounts Review Redundant & Redirected Accounts and provide feedback / questions on allocation

16. Agenda Objectives for Today Background to Chart of Accounts – Phase 1 What we have done What’s next? Q&A