Contractors vs Consultants€¦ · Consulting, Access Testing, Oakton Services Contract services...

• Opening

• Definitions

• Vendor Form

• Tax Tools

• People Costs / Non People Costs

• GL Adjustments and volume of transactions

• Roles & Responsibilities

• Suggested process

• Budgeting

• Finance Services

• Next Steps

• Welcome

• Why are we here

─ Use of contractors is under intense scrutiny

─ Divisions have strict professional staff people costs budgets that must be adhered to

─ Roles and responsibilities require clarity

[1] All contractor expenses are presented as a people cost in the management reports[2] All consultant expenses are presented as non-people cost in the management reports[3] All contract services expenses are presented as non-people cost in the management reports

A contractor is from an external organisation (labour hire company or agency, sole trader, private company, partnership, trust…) providing people resources to UNSW. UNSW engages contractors as temporary resources for project work or as a temporary backfill for UNSW staff to work as part of our core business.

– Work is based on a contractor agreement for a fixed period of time at an agreed rate

– Under direct supervision of UNSW – Usually paid per hour/day – Volume of work measured in Full Time Equivalent

(FTE)

Contractor Supplier Examples: Enterprise IT Resources, Hays, Peoplebank, Michael Page, Robert Half, CML Payroll, Ecareer Employment Services, Hudson Global Resources, Randstad, ITTalent; JMC Consultancy

A consultant is an external person or organisation engaged with a specific skill set and/or area of expertise providing advice on a certain matter.

– Work is based on a statement of work agreeing on specific scope

– Provides expert advice to UNSW– Operates independently under their own supervision– Usually paid per day or fixed fee for the engagement

Consultant Supplier Examples: KPMG, PwC, Deloitte Consulting, Access Testing, Oakton Services

Contract services expenses are costs incurred for services from agencies or an external company or entity in connection with the operations of UNSW and to support the core business. These may include outsourced activities like cleaning services, laundry, security services, and other operating costs incurred to manage the UNSW campus but can also be contracted research activities.

- Work based on a contract to deliver a service - Provides service to UNSW, often on an ongoing or recurring basis- Operates independently- Paid per delivered service

Contract Services Supplier Examples: N R G Cleaners, Pickwick Integrated Facilities Services, MSS Security, Amazon Web Services, Department of Finance Services, St Vincent's Hospital

6136 - Contractor - Academic

6139 - Contractor - Academic P/Tax

6137 - Contractor – Professional

6192 - Contractor – Professional P/Tax

6130 – Contractor - IT

6138 – Contractor – IT P/Tax

6105 - Consultants Fees

6103 - Consultants Fees P/Tax Payable

6101 - Contract Services - Other

6127 - Contract Services - Plumbing

6116 - Contract Services Cleaning

6108 - Contract Services Investigator

6118 - Contract Services Laundry

6113 - Contract Services Nurses

6110 - Contract Services Pathology

6112 - Contract Services Pharmacy

6126 - Contract Services Print & Copy

6109 - Contract Services Radiology

6123 - Contract Services Safety & Sec

6124 - Contract Services Sys Support

6133 - Contract Services Transport

6180 - Contract Services Waste Remove

6193 – Contract Services Research

NEW!

“Refer HR” means that payment should be made via payroll and UNSW will be liable for the following employment taxes:

– PAYG withholding– Superannuation Guarantee– Payroll tax– Workers' Compensation

This training covers payments made by AP only, once referred to HR they will determine the appropriate GL account to use

The definition has no bearing on the “vendor-engagement of contractor” process

Answer the questions and be advised of the appropriate GL account to use

(Note: the Tax Tools need to be updated with the GL account code changes outlined in this training)

People Costs

ContractorAgency

Staff

Non People Costs

Consulting Services

Contract Services

* Represents the view from the management reporting perspective

Payments to External Contractors for Services not covered by other contract services accounts

Excludes payments for Contractors i.e. People Costs - see accounts 6129 -6130, 6136 - 6139, 6190, 6192

Excludes payments for Consultants - see accounts 6103 & 6105

Excludes payments for Systems Support - see account 6124

Contract Services – Other is similar to the consultant category, however the distinguishing factor is that the work commissioned would generally be undertaken by a UNSW resource, however, due to various reasons there is a contract in place to deliver the service by a non UNSW resource – it would be for a specific piece of work and would normally have a statement of work.
















NEW!

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Restricted Funds Unrestricted Funds

24.7 % (Medicine)

• Several codes will be retired

• Remaining codes: • Contractors

– Academic

– Academic – payroll tax

– Professional

– Professional – payroll tax

– Contractor IT

– Contractor IT – payroll tax

• Consultants

– Consultant

– Consultant payroll tax

• Contract Services

– Contract Services other 6101 use to be reduced

– New account contract services research for anything Research Related that doesn’t fit into another Contract Services code (and 6101 would ordinarily be used).

– See the full list to the right



6137 - Contractor – Professional

6192 - Contractor – Professional P/Tax

6130 – Contractor IT


6105 - Consultants Fees

6103 - Consultants Fees P/Tax
















NEW!

6193:

Initially code 6193 was proposed for Restricted Funds only, this is no longer the case. It can be used for any Research related contract service where another category doesn’t exists and 6101 would ordinarily be used.

This account was created to reduce the Researchrelated activities in account code 6101.

10/6/2020

6. GFC

Financial Control responsibilities

5. ACCOUNTS PAYABLE

Non-Purchase Order payments

4. FINANCE SERVICES

Purchase Order processing

3. ACCOUNTING SUPPORT TEAM

Clarify role

2. MR&A / RF

Budgeting, Management Reporting, Research Finance related activities

1. FINANCE BUSINESS PARTNERS

Manage the relationship and provide trusted advice

6. GFC

5. ACCOUNTS PAYABLE

4. FINANCE SERVICES

3. ACCOUNTING SUPPORT TEAM

2. MR&A / RF

1. FINANCE BUSINESS PARTNERS

Have a number of checkpoints throughout the process and increase the education of customers as follows:

• Targeted workshops across faculties and divisions. Who are the staff requesting PO’s for consultants and contractors?

• The customers are provided training via MRA who have the expected technical skills to relay this information in their respective faculties and divisions

• FST’s role is a check point in the process not to be held accountable as they do not have the expertise to provide this advice

• FST is made aware of the obvious account errors so they can track faculties/divisions errors and provide feedback to relevant MRA’s to follow up with the customer

Vendors such as: Enterprise IT Resources, Hays, Peoplebank, Michael Page, Robert Half, CML Payroll, Ecareer Employment Services, Hudson Global Resources, Randstad, ITTalent, JMC Consultancy



6137 - Contractor – Prof (General)

6192 - Contractor – Prof (General) P/Tax

6130 – Contractor - IT


Vendors such as: Enterprise IT Resources, Hays, Peoplebank, Michael Page, Robert Half, CML Payroll, Ecareer Employment Services, Hudson Global Resources, Randstad, ITTalent, JMC Consultancy



6137 - Contractor – Prof (General)

6192 - Contractor – Prof (General) P/Tax















Vendors such as: N R G Cleaners, Pickwick Integrated Facilities Services, MSS Security, Amazon Web Services, Department of Finance Services, St Vincent's Hospital

6105 - Consultants Fees No P/Tax

6103 - Consultants Fees P/Tax Payable

Vendors such as: KPMG, PwC, Deloitte Consulting, Access Testing, Oakton Services

Costs should go to the appropriate GL account and if this is not the one where budget is recorded then this will just be a variance to the report

* Inaccuracy of GL accounts will also impact the Annual Report

Yvonne Balakian &

Amanda Troobnikoff Managers, Finance Services

FST undertook further training late last year in relation to Contractors

and Contract Services as it was highlighted that 6101 was often being

misused

I don’t know which GL

code to use

That’s the account I’ve always used

But that’s what we

budgeted for

That’s what I was told to

use

In particular it was highlighted that

account 6101 was sometimes being

incorrectly provided as a code by our

customers but also because it has

become the ‘go-to’ default code to use

for miscellaneous services that could not

be specifically identified

FST will perform health checks on all transactional work provided to them by our UNSW customers.

Our objective is to ensure that the GL codes provided and entered are the most appropriate fit for

the nature of the goods or service based on the information provided to the team.

FST will work with our MRA/FBP peers and reach out

when questionable GL codes are provided or when

requests are particularly unclear in relation to

Contractors and Contract Services.

– Training was undertaken by FST for Contractor and Contract Services GL codes in September 2019.

– This empowered the teams to feel more confident in suggesting appropriate account code use and making more informed decisions in account code selection.

– This better understanding of 6101 use is clearly demonstrated in this graph on GL adjustments performed on code 6101.

Training

✓ Check accuracy before selecting any Consultant, Contractor or Contract services GL Account code (particularly account 6101)

✓ FST & MR&A to work together to identify any issues that need to be addressed

✓ MR&A to work with customers (FPTS will assist) to understand appropriate use of GL account code accuracy

✓ Look out for communications that contain information on this subject

Contractors vs Consultants€¦ · Consulting, Access Testing, Oakton Services Contract services...

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