Take advantage of End of Financial Year Planning

00:00:06:28 - 00:00:35:24 Speaker 1 Hello and welcome to the Take advantage of early in the Financial Planning webinar. I am Robin Sharp, the customer account director here at Brightly and I'll be the emcee and the moderator for today's webinar. As you all know, the preparation for the end of financial year auditing is often a stressful time for councils across Australia, but it doesn't have to be ideally in the financial year. 00:00:35:24 - 00:01:17:28 Speaker 1 Planning should start from the start of the financial year and should be meticulously maintained throughout the year to reduce the stress and achieve greater efficiencies. So we will deep dive into how and what we can do and today's sessions will be presented by role with our Assets and Accounting Service Manager. He will basically deep dive into end of financial year planning and talk about audit, focus, asset inventory valuations and capital works and all the available resources that you can chip in from the outside. 00:01:18:23 - 00:01:55:13 Speaker 1 Also, we have Chintan Shah was joined us in today's webinar. He's the product manager at Brightly and he will be talking about the product capabilities and we'll also cover our initiatives in the valuation and accounting space. That's the brief agenda for the day. So, you know, we will have Rohan talking about insights into end of financial year. Then it will be followed up by Chintan and then we will have a question and answer session at the end before I hand it over to Ron, just some House rules. 00:01:55:27 - 00:02:19:28 Speaker 1 So this webinar, as you know, is recorded and will be made available to all the participants. This webinar is scheduled for 45 minutes and there will be no break. If you have any questions, please use the Q&A options in your Zoom meeting and type that answers questions in there and will answer them in the last leg of the session. 00:02:20:16 - 00:02:27:06 Speaker 1 So without further ado, I will quickly hand it over to Ron and ask him to steady stream. Thank you. 00:02:27:27 - 00:02:57:10 Speaker 2 Thank. Yes, thank you, everyone. My name's Rohan and I've been working with brightly acidic for the last two and a half years. My background is local government mainly, so I did about five years in finance and eight years in engineering. So have that mixture of experience that accounts and hearing experience. I may have dealt with many of you over the journey over at doing valuations or looking after my data or cloud or and touch points for those sort of things. 00:02:57:10 - 00:03:22:04 Speaker 2 So with that experience come some tips and tricks that we've learned along the way. So we deal with up to 5080 clients each year and we often deal with orders with that. So we get an insight across the Australia. So big castles, little castles, sort of see some trends happening in one state that flow through to other states. 00:03:23:08 - 00:03:51:25 Speaker 2 So we just passed on some of our knowledge, like, as Bob said, planning is all year round, so some of this may be useful for this upcoming financial year, some may be for getting ready for next financial year. So hopefully you can get something out of today. But we'll see what we can do. Last year we noticed that the main focus across across Australia really was all just really fixated on index ation. 00:03:53:03 - 00:04:18:26 Speaker 2 In the past. We sort of just had a sort of a 10% move that was considered not material, so we're not doing anything sort of thing. Queensland has sort of indexed each year, but New South Wales got really hard last year, hit hard last year with movement both in dollars and in percentage. So it may have been a small percentage, but the dollars was significant enough for the audit to say no. 00:04:20:02 - 00:04:41:03 Speaker 2 That has to be indexed. Victoria sort of got away with it, but you can say it's coming this year, so you really just need to be have be prepared that you assume that the orders are going to ask for an indexation this year or a distant rival to do that indexation. So just a bit should be aware of that. 00:04:41:03 - 00:05:07:16 Speaker 2 Now that broadly A said we do provide we'll have information that we can provide you at a cost of course for some of but we've got a pretty robust system to determine that indexation. If you don't want to use like the ABS or the just a standard CGI or the standard index, we can go down to individual asset types, classes, those sort of things. 00:05:09:02 - 00:05:49:12 Speaker 2 The other requests, which is sort of came out of left field last year, but you can see it's starting to pick up. And as councils and clients getting more mature in the asset management space, they're starting to publish their works programs and asset management plans, all those sorts of things with that in that they sort of lock away year one to 3 to 5 as capital works programs and the orders are picking that up and going, well, you've got a capital works program that says you're going to replace this asset next year, but in your accounting register, it's still got 20 years left on the remaining useful life. 00:05:49:12 - 00:06:14:13 Speaker 2 So they starting to scrutinize well, is the remaining useful life really accurate? So just be aware that it's something coming. So I don't say it's going to be a massive focus, but just be aware of that. If you do have those work programs locked in for one and two for mainly your renewal programs, just be if you're doing a desktop review, I'll just be mindful that you can reduce the remaining useful life through that process. 00:06:15:02 - 00:06:36:18 Speaker 2 Take it through the radio reserve. It is desktop radio. The oldest haven't cracked onto that yet, so that's good. And yeah, it's just, as I said, kind of a bit of left field just last year, but we had quite a number of clients that went through that. So that was the key learnings from last year wasn't too much else. 00:06:36:18 - 00:07:14:11 Speaker 2 Everything was pretty status quo. So yeah, we'll see what happens this year. Um, for the asset inventory inspections, the real focus on this is to make sure that you plan early and have your data ready. It's no use pulling out of register in December January, put it in a tender should of two for a contractor to use if you haven't looked at it quite often, we say that clients give you a register. 00:07:14:11 - 00:07:35:12 Speaker 2 I haven't really scrutinized that book in a contract of tens of thousands of dollars and half the assets can't be inspected because there's not enough inventory. They don't know where they are. And depending on how much you're paying, the contractor, they're not going to spend more than 5 minutes trying to look for it. They'll just disappear and go put a comment in that we couldn't notified that not enough detail. 00:07:35:26 - 00:08:03:27 Speaker 2 And what we're finding is a number of clients don't realize that until the first draft of the valuation when this asset hasn't been valued because we couldn't find it and the contract is banked on for three months sort of thing. So make sure you scrutinize your data before you send it out just to even if you have to send someone out to inspect half a dozen, that it's just to get a location or just you know, where it is, just update the inventory a bit just so that you're not missing out an opportunity. 00:08:04:21 - 00:08:32:28 Speaker 2 A lot of these assets aren't really inspected frequently, so might be 3 to 5 years. So it's best to get the value out of your dollar by having someone doing a proper job just to collect the data. It's sort of from an audit perspective as well. The you can't just blame the contractors anymore. The auditors will say who was managing the data collection and all that sort of stuff from a counsel point of the client point of view. 00:08:33:11 - 00:09:07:13 Speaker 2 So just be wary of that as much as you'd like to just make everything, pass it up and give it someone else to make your problems disappear, they will focus on yourselves as well. The other sort of things we find is when you do go out to tender or you not, things stipulated, so you might miss out on JPEGs or photos or things like that, and you sit down and you just assume or you have a verbal conversation with a contractor and they say, Yeah, yeah, yeah, or those sort of things. 00:09:07:13 - 00:09:30:03 Speaker 2 And you get the data back and they charge you extra for the photos or JPEG. So they just don't give it to you because I haven't selected it because it wasn't in the RFQ. Again, it goes back to you only doing this every 3 to 5 years. So it's just taking those opportunities when you can. And if you've got recent photos and data, it makes it easier to match things up. 00:09:30:03 - 00:10:08:16 Speaker 2 So if you've got conflicting information, inventory hasn't been updated and it says it's just material, you look at a photo, yes, you can saying that's brick and no longer would those sort of thing. So a scrutinizing of the what the data has been collected as well really helps the well knowing reasonable timelines for collection having releasing a tender and expecting data collected evaluation and sort of drafts within three months for some bigger classes just doesn't really it really puts pressure on everyone. 00:10:10:05 - 00:10:32:12 Speaker 2 So you just got to be wary of that. When they're out in the field, they will find issues. I want to work with you. I want to get a good result. But they're also keeping an eye on timelines. So I know we've had some cases where with that calculated from the timelines and we've had like three days to do a massive inspection, which just wasn't possible. 00:10:32:12 - 00:10:56:16 Speaker 2 So just be mindful of that. You can start preparing your tenders around that September and have seen it. You know, your budget's coming, so you can start preparing it around September, October, release it in November, give quite a leading. So that data collection, you've also got a lay off like weather changing weather conditions, those sort of things as well. 00:10:56:16 - 00:11:15:15 Speaker 2 So just make sure you've got a little bit of flexibility in those timelines for the the data collection, the sampling as well. We get asked a lot how much should we pick up you you say 10%, but 10% could be of what, so 10% of your network? You don't want to just go collect a certain type of asset. 00:11:15:15 - 00:11:38:03 Speaker 2 So say roads, for example, you want different hierarchies, different locations. So you wanted a spread across. If you want to sort it, spread those conditions out as across the rest of the network. And it also comes down to value. You might have a thousand assets in an open space registered, but 10% of that of those assets make up 90% of that class. 00:11:38:12 - 00:12:09:12 Speaker 2 So you wouldn't focus on the other little ones. So you take into account some of the values as well of the class, not just the volume of assets as well. The next ones are valuations comprehensive, just top indexation. So typically you've got your revaluation cycles three, four or five years. Now with this indexation focus, this may alter those cycles. 00:12:09:20 - 00:12:40:23 Speaker 2 We're finding that there's a tolerance. So if your cumulative indexation is starting to reach 20%, there will be an expectation that there's a comprehensive value to follow. So that may be two years before you're scheduled to do it. But that 20% cumulative seems to be the threshold at the moment. New South Wales has pretty much legislated the policy in place and the other ones are sort of going that haven't put in legislation but I'm sort of waiting towards that. 00:12:40:23 - 00:13:11:12 Speaker 2 So just be wary of that. If you have especially the last couple of years with the inflation. So some of them might be edging up the issue that might trigger a comprehensive revamp next year. So just be mindful of that when you do your assessment this year. The orders are also looking for consistency. We're finding not that could be over a particular class or a multiple a single class. 00:13:11:12 - 00:13:37:11 Speaker 2 So we used to be able to get away with saying, oh, this swapping orders value as each year used to sort of give you a bit of latency and discrepancies in valuation time on time again. But that is sort of no longer cutting it. So the orders are looking for a bit of a consistency, a consistent approach across all your classes. 00:13:37:11 - 00:14:03:26 Speaker 2 So it might be worthwhile looking at multi-year deal. So instead of you usually know that you're going to do certain classes over the next three years, it might be worth going after tender for three classes. So that sort of builds a relationship with our valuer has takes a headache out of tendering each year and going through that process the value it can get access to good data early. 00:14:04:00 - 00:14:30:07 Speaker 2 Start doing some of those scrutiny hearings to point out some things that may cause some issues. So it's just worth investigating that to just to pay some of the consistency issues. The other one is do you have the resources fixed to assist with the questions of value is have. And it's not just the value is, it is the contractors are collecting the data as well. 00:14:30:07 - 00:14:55:25 Speaker 2 There is lots of backwards and forwards and I know as we value a lot of assets, who can we speak to about this? And there are ways there's no one available, so it just makes our assumptions more difficult. So it had to be scrutinized. So we we're making assumptions on your behalf at that stage rather than getting some insight to the right people. 00:14:55:25 - 00:15:22:26 Speaker 2 So if you are at least have one person that may be able to answer the questions and not just everyone go on leave at the same time. So that's all good and capital work. So this is we're heading into the capital exercises now. We have the Capital Works program. Most of these have begun through the budget process now. 00:15:22:26 - 00:15:46:24 Speaker 2 And if not adopting your capital works program for next year, it'll be pretty close. So there's no reason why as soon as the Capital Works programs adopted that you can't start identifying assets that belong to each project. So those issues we're explainer predictors that make my like life easier. But others that may be sitting down with the program managers or project managers. 00:15:46:24 - 00:16:06:07 Speaker 2 So what area are you going to be working on? Then you can start to identify the assets that are going to be impacted. You know, sort of get an understanding what's going to be removed or this one's going to be renewed, those sort of things or realignments, those sort of things. So you start to get a feel of that. 00:16:06:07 - 00:16:33:28 Speaker 2 So the last thing you're doing, you've got all the information ready, the last thing you need to do is just allocate the dollar amount, which is the easy part, really. The hardest part is identifying the asset. So you can by identifying those assets from June-July through to the time it catalogs is the following year. So just take that pain out of trying to get everything done in those last two months. 00:16:34:02 - 00:16:54:06 Speaker 2 If you've got everything ready to go, then that's great. The other one is don't wait till the end of the year to do your previous year whip. So at June 30 this year there'll be a number of projects that are completed and they usually get finished in the first few months of the next financial year, but they sit there until June the following year ready to be capitalized. 00:16:54:06 - 00:17:18:16 Speaker 2 So there's no reason why you can't clear some of that prior to Christmas. And just like that, again, taking that pressure off you to do that number of auditors saying, oh, why don't you? Well, you should be doing more frequent capitalization as we know you're still doing. And a financial year in the September quarter, October quarter, you want something before Christmas if you can. 00:17:18:16 - 00:17:45:29 Speaker 2 If you finish with another bunch in, say, March, just to clean up some of those. And then by the time you get to the end, it's not as overwhelming as it could be. So definitely try and do that through the year. The other option and a number of our clients are starting to close off their work early. So April, my sort of thing, summer March, and that just allows you to get all the bills in for those projects that are completed up until the end of, say, March, April. 00:17:47:02 - 00:18:08:24 Speaker 2 So you're not waiting to that last payment run mid-July. This has been widely accepted by auditors, so there's been no issue. Yeah, a lot of the use will be sitting there thinking, but we don't get everything done until the last month sort of thing, which is fine. Like you might have a one off year where you've got a lot of money sitting in, Wait, it's not the end of the world. 00:18:10:01 - 00:18:34:12 Speaker 2 If you take the orders on that journey, then that'll smooth out over time. So yeah, it's nothing wrong with having money sitting up at the end of the year. If you've got a bit of a plan, a process in place. Yeah. Oh yes. Asset damage. So as you most of you be aware, in payments, the accounting standards for repayment has changed over the last couple of years. 00:18:35:03 - 00:18:59:10 Speaker 2 Not for profit doesn't really apply to this anymore. But the odd escape question in asking the question of adding payment. So we sort of work with the individual orders, individual councils, when the question comes up, basically it's the end result is it's going to be a distant rival, the materiality of the damage and all those sort of thing. 00:18:59:10 - 00:19:22:15 Speaker 2 So while it's a bit a gray area of how that's being applied by auditors and audit offices themselves, it's either going to be impairment. So you are going to be a distant rival. It's going to end up in the same place in the balance sheet, and it's just about making sure you get the right information to make the call. 00:19:22:24 - 00:19:46:19 Speaker 2 So I've got the how much does it reduce the carrying value by now? We if there's a major flood, major damage, something like that, a lot of councils will rely on the estimated costs it's going to be to repay that. So there might be a damage bill of $8 billion, but for some reason the orders then go, well, it should reduce your value by $8 million. 00:19:47:02 - 00:20:07:05 Speaker 2 Now remember that the impairment or the reducing the carrying value is on sale is to reduce the carrying value. So it's not the replacement cost. So even though your road's been damage, it wasn't brand new when it started. It was in condition three or condition four. So you need to take into account how much of that written down value has been impaired. 00:20:07:05 - 00:20:30:02 Speaker 2 Is it fully closed then the remaining written down value? If it's still open, then it might be half of that. And a good one is landslips. It's going to cost us $1,000,000 to replace a landslip, but we're only valuing 150 mil of the pavement, maybe 100 mil of the earthwork, and it's only taking out ten square meters or something. 00:20:30:02 - 00:21:04:24 Speaker 2 So the actual damage to the asset that you were valuing is only $50,000 or something like that. It's not what it's going to cost to repair the landslip. So just be mindful of how much you're actually reducing the carrying value by and just follow wrap up now. So yes, as for those who have been familiar with acidic and brightly in the past, you know, we provide these services so it's got acidic services here. 00:21:04:24 - 00:21:28:05 Speaker 2 You may be wondering why we're still using acidic and acidic services. Now, our reputation within within the industry of ordering financial those sort of things is still fairly held in high regard. And we deal with hundreds of orders across Australia over the last 15 years sort of thing, ten or 15 years they come and go, some users, but they still know who acidic is. 00:21:29:00 - 00:21:57:18 Speaker 2 So we're still sort of using that for our valuations and accounting services purely because of our reputation and the saving hassles for our clients. So we don't want them coming in thinking there's a new new show in town who is a sprightly valuations and we're going to scrutinize them because we haven't dealt with them before. Soon, as I say acidic, we've got brightly written all over our product paperwork as well, but it just gives them that comfort that it's still the same acidic that it was. 00:21:57:29 - 00:22:22:10 Speaker 2 We just got a different name. So while we transition and get them up to speed, that's why we're still there. But yes, so if with the environment we live in these days, with the turnover of stuff, those sort of things, if you do need help and support with any of the brightly products or the set of cloud of my data, we do have teams here that can assist with that and just process. 00:22:22:10 - 00:22:41:13 Speaker 2 You prepare the data, we process it through and then we have also the asset accounting and advice and resources. So if you do need someone to sit in and process things for, you will do the heavy lifting for your capital work and figure out what should you actually be doing, those sort of things, interview reporting, discussing orders, those sort of things. 00:22:41:13 - 00:23:08:12 Speaker 2 We do that, of course, valuations and we can also provide the engineering advice and ratios as well. So that might be right around planning for your data collection or inventory inspections and all those sort of things. What do we need to pick up and those sort of things as well. So yeah, so hopefully that's provided a bit of help to not only this financial year but the financial year ahead. 00:23:08:21 - 00:23:10:24 Speaker 2 All right. That's pretty much made up. 00:23:11:10 - 00:23:35:22 Speaker 1 Thank you. Thank you, Ron. That was great. You know, so there are a lot of takeaway points where you talk about audits, the services we provide also, you know, some key points that you've covered on impairments, etc.. So if anyone has any questions, I would please ask them to put into the Q&A and we will ask Barone's Are you still with us? 00:23:35:25 - 00:23:52:04 Speaker 1 Am not going anywhere. And if you have any comments as well, add to the Q&A section and we'll discuss that after Chintan finishes his topic on product capabilities. So thanks, Ron. And over to Eugene's. 00:23:52:04 - 00:24:15:23 Speaker 3 Thank you, Bhavin Thank you, Ron. Hello, everyone who has joined today. Thanks for your time and for chiming in. I'm Jim Dan Shaw. I'm a product manager looking after values, accounting modules and a study. I've been with a setting for brightly now for ten years now and have done multiple roles from solution architect the product on down to product management. 00:24:16:11 - 00:24:45:18 Speaker 3 So my but my background is from I.T. But I've done asset management along the way and today I'm going to talk about end of financial year from more from a product capabilities standpoint. Okay. So what brings us to our needs? So as Rohan mentioned in his presentation, well, at the end of financial year is an event that makes asset engineers talks to asset accountant. 00:24:46:24 - 00:25:13:24 Speaker 3 Okay. So this can be challenging, let alone the challenges to reconcile data amongst the two personas coming from different background. So how can we make the software that promotes collaboration and how to reconciliation? Finding resource is a pain, especially in the current market conditions. We are in Australia. The valuation what we want to touch based on is a is a resource memory exercise. 00:25:14:11 - 00:25:47:13 Speaker 3 So how can we make software that is ensuring and improves operational efficiency? And again, audits are getting rigorous and the challenge should give asset register current is always on the mind of asset managers. So again, how can we have those intuitive softwares that helps the best account asset accounting practices? So this is what I'm looking at is a simplified version of our asset management system. 00:25:47:13 - 00:26:16:22 Speaker 3 With asset centric approach, asset managers can stay on top of asset conditions, level of service dimensions, allocations, maintenance and valuation in the asset cloud platform. In order to facilitate asset accounting, we have created some ledger system within the asset management system that complies with the standards. So out of box you've got two ledgers supporting two different accounting style, one fair value, and second is storing them. 00:26:17:11 - 00:26:56:14 Speaker 3 Fair value is more suited, as you know, is more suited for assets like roads, bridges, stormwater pipes, etc. whereas asset versus historical ledger is more suited for fleets, equipments, etc.. So this is the sub ledger system we create and maintain journals that's asset component level, which then can be rolled out to that to the financial class that it is configured in the context of corporate finance system Asset Accounting module provides accurate value along with deposition and rule that can serve as inputs into long term financial plans. 00:26:57:14 - 00:27:31:00 Speaker 3 So this shows the ecosystem of how the what the features are being laid into the cloud and how it leads to the to the bigger ecosystem. And in general, the accounting process looks like these that you create asset valuation records in a solid cloud which caps your dimensions. You can trade your placement calls useful life or many useful lives at a cost of having an index, which then goes through the reconciliation process and the general is created. 00:27:31:00 - 00:28:06:29 Speaker 3 And so value ledger and we started the ledger. So you start from a persona, from a user or personas perspective, you start from asset value, who captures all this data, and then it blends with asset accountant to process those journals. So this is the current state of our asset cloud values and accounting modules. We believe that we have achieved the sort of market and so our other products and services, that is assets, valuations and accounting modules, it what the end of financial year tell a spa. 00:28:07:00 - 00:28:47:29 Speaker 3 We understand the games and we also understand the pings. We at the moment we have about 75 plus clients using a static cloud for the end of financial year consensus. But then how can we get better? Okay, so we have a maturing times. As Ron mentioned, there is a need for operational efficiency. We recently did a few client interviews and client visits and the term operational efficiency was something we what we kept hearing from everyone and what that means, it means that the system performance needs to be really at the mark where it doesn't become a block up. 00:28:48:12 - 00:29:16:29 Speaker 3 We need to simplify workflow and reduce number of clicks, better use of experience for the task and the job needs to carry out during the financial year and also a better reconciliation process between FSL engineering data and asset. And because as an accounting data. So this is what we mean by operational efficiency and our next challenge is to how we can create softwares that can take all those boxes. 00:29:16:29 - 00:29:41:06 Speaker 3 So in order to address that, we have initiated something called Project Zen. Now this is a bit of a right to it's topic to get attention, but what really eases a lot of our mission is to provide best tools and experience for performing legislative and or financial year asset management processes. That helps a customer to pass. Two things. 00:29:41:06 - 00:30:19:03 Speaker 3 First is the financial sustainability audit and also to contribute to long term asset management plan. So we understand that in order to do that every single year, the teams and environment and the council is under a lot of pressure to produce this outputs. So our mission is to have a bit of a Zen feeling amongst the asset engineers and asset accountants with the help of this business, the future capabilities and with the help of software systems, which actually fits very nicely into our overall global and self strategy. 00:30:19:17 - 00:30:46:22 Speaker 3 So you might have heard these and have seen this in the illuminate conference we did last year. So we are going towards building a unified platform which we call is broadly the same platform. So at the bottom is always going to be asset register assets being a centric of of everything we do. On top of that, that would be asset performance and conditioning monitoring component. 00:30:47:18 - 00:31:24:27 Speaker 3 And, and then on top of that, we have this accounting as well as for service delivery and maintenance compliance, which all feeds into our predictor, which is our rattling so often. So the project then is about making sure that the same accounting component takes all those industrial challenges I showed you earlier. Now the the scope of projects is actually it's going to be a 12 to 18 months journey and there are three things we are trying to address all three objectives we are trying to address. 00:31:25:08 - 00:31:56:03 Speaker 3 The first is the performance, the second is the reports. And by capabilities. And the third is the workflows from the performance side of things. We want to make sure that the that we have we provide faster data exchange imports, stock more data from your CSP files in the system. We want to support for concurrent accounting batch processing, which means that an asset accounting can slide multiple batches together and let the system worry about scheduling and processing those batch. 00:31:57:18 - 00:32:26:19 Speaker 3 We want to have foster reporting and foster foster data exports as well, and we also want to implement the bulk delete valuation platforms and foster roll back functionalities just in case. If you make a mistake, you want to roll back things as well. And, and in order to achieve that, the progress we've made so far is investment in super replica to enable performance gains and the development has started to simplify the data exchange. 00:32:26:19 - 00:33:01:12 Speaker 3 Sims So these are the two initiatives you've already started working on, but there's a lot of work coming our way in order to achieve the performance gains from the reports and be capabilities we want to provide you out of the box reports. The current state of ACM dashboards, regional reports, new software is reporting reports might be different than Victorian reporting requirements, not providing the original requirements, but also the API friendly so that the output of accounting model can be easily integrated into your finance systems. 00:33:02:24 - 00:33:34:03 Speaker 3 What progress we have made so far in this area is we have we have partnered with third party VR tools like Logic, and we now looking to integrate those beyond tools within outside products. And finally, the big thing is the workflows. We understand that each and every workflow from asset component ization to updating asset registry valuations, indexation step realizations, reconciliation, all those are different workflows that are complex workflows and requires a lot of data handling. 00:33:34:25 - 00:33:57:29 Speaker 3 So we want to make sure that this all is workflows are user friendly and and they are fast and intuitive for for the council users to you to look, have a look and navigate through the system. So we have been doing a lot of hiring at this stage and we have invested in hiring and expanding of our development and product teams. 00:33:58:20 - 00:34:31:10 Speaker 3 Also the UX designers who are proficient in working in the modern architecture to enable the rich and seamless user experience we want to provide to our clients. So in a nutshell, this is the project Zen scope again, and it's going to get to out to 18 months journey. And I always give an analogy to talking to my colleagues and to everyone that we have a car at the moment moving at about 60 to 80 miles an hour and we are now going to change the front wheel of that car while the car is still running. 00:34:32:02 - 00:34:58:22 Speaker 3 So it's it's going to be really exciting projects, internal team are really excited to take on this challenge and I hope the clients from from your perspective, you will also see the value in achieving this and this helps you all in your day to day work and so with that, thanks for the time. And yeah, that's me having if you want to take more of this. 00:35:00:26 - 00:35:11:20 Speaker 1 Thank agenda, I have got a few questions, one for you and one for your content. So if you are okay, can I ask them. 00:35:14:26 - 00:35:16:15 Speaker 3 To find a way. 00:35:17:20 - 00:35:19:11 Speaker 1 You can stop sharing your screen content? 00:35:20:27 - 00:35:24:27 Speaker 3 Okay. 00:35:24:27 - 00:35:38:19 Speaker 1 All good. All right. So one of the questions is, are that everyone, this is for you. Are there any new policies that you are aware of that will add to our audit requirements in this financial year? 00:35:39:17 - 00:36:12:17 Speaker 2 This financial year, not that we're aware if there is changes to ISP, ISP, So rain coming in around September, they're not. From what we can tell so far, it's not too dramatic for those that have done had us value in the past. Is it's not really an issue. So we'll keep an eye on it. We suspect there will be some position papers coming out or released by the powers that be shortly, but definitely not this year. 00:36:12:17 - 00:36:16:09 Speaker 2 But I'm pretty sure they start to come into effect the following year. 00:36:16:28 - 00:36:28:13 Speaker 1 So thank you. And while you're there, I will also ask another one that is about the indexation that you mentioned. It's reducing the carrying value and what and how. 00:36:29:01 - 00:36:31:28 Speaker 2 But it came in really. 00:36:31:28 - 00:36:48:13 Speaker 1 Do you know what is the threshold of. So, you know let's the question it's worded but I put my own words around it. It says what's the threshold for indexation? Should we do it if it's only increased by one person or should we wait till it's 3%? What's what's. 00:36:48:13 - 00:37:17:07 Speaker 2 Yeah. Yeah. And this is where the orders landed on the doorstep last year and basically had this small figure, I think one cancer was point zero 1% of their road network in value was called material. So it's really best to be at sort of your interim audit or start to at least know what the movements are before. So you can present that to the auditors and say, Well, this is what it is. 00:37:17:21 - 00:37:39:21 Speaker 2 Do you want us to do that? Do you want us to should it be indexed? So if you've got that information beforehand, rather than turning up in August, September, if you can liaise with them beforehand and say this is what our expected movement is, both percentage and point of the replacement cost and the carrying amount, then that would be probably the best approach. 00:37:40:28 - 00:38:03:18 Speaker 2 New South Wales is pretty much anything under 20% plus or minus. Really. You should be indexing Queensland, sort of been in that indexation phase for a while. So Victoria is seems to be a bit slow but they start to sort of crack down on that as well. 00:38:04:06 - 00:38:24:23 Speaker 1 Yep. That is one for you can tell. Why cannot we make these tools to talk to each other rather than using the CSA upload? So I'm quite not sure in what reference exactly this was, but if you can give any sort of insights or, you know, some comments on that change. 00:38:25:07 - 00:39:02:17 Speaker 3 Yeah. Yeah. I think I understand that there is great question about. So there's two ways to enter data entry system. One is why CSA uploads and the second is APIs like APIs all over development. All our feature development goes into the product are all API this and that is, that is a modern way of developing softwares. Now, the reality is, however, is that the console has a lot of systems in silos and in order to get them up and running, a lot of data is in Excel spreadsheets and honestly, that is the reality at this stage. 00:39:03:01 - 00:39:24:20 Speaker 3 So we need to cater for both for mature lines. Yes, APIs is the way to go. So with that, reduce the amount of CSP uploads. But but for the smaller clients with that are the clients who are just starting the journey and asset management we are seeing the CSP uploads are the way to go. So as a software system we have to address both. 00:39:25:24 - 00:39:28:11 Speaker 3 But yeah, thanks for the question. I hope that answers your question. 00:39:28:25 - 00:39:57:20 Speaker 1 Thank you. And one more while you are here. June Chintan is VR that are audience here who are not only a city cloud user, but they are also confirm user and the permit capabilities and details. You mentioned. The question is how does this impact those lines of people who are using confirm as a product or will this project then also cover not only as a cloud, but we cover different phone products as well? 00:39:57:20 - 00:40:00:27 Speaker 1 So if you can give any details on that piece. 00:40:01:14 - 00:40:30:22 Speaker 3 Yeah, Yeah. Another excellent question on this gets asked a lot of times. So remember if I give my analogy of a car moving at 60 to 80 miles an hour and we are trying to change the front wheel of that car, one, it's more so that is in relation to this question. So what we are trying to do is we first of all, the capabilities of valuation and accounting modules, we want to microservice them and extract them out of a static cloud. 00:40:31:06 - 00:40:57:20 Speaker 3 And once we do that, we can then offer that integration point or services through the other comes from clients as well. So eventually that component which we call asset accounting or runs in accounting, will be sitting on the brightly platform where the consumer clients can also consume that those companies. So that is over long term vision and we have started working in that direction. 00:40:59:04 - 00:41:11:27 Speaker 1 So thank you. Also, Ian has made a comment or I don't know whether it's a question, but it's just says in Victoria replacement values are greenfield and not brownfield. So yes, I do understand. 00:41:11:27 - 00:41:33:11 Speaker 2 Ian Yeah, it may just relate to that doing the assessment. It's in between valuation is doing the best. So the best way to assess that movement is on that construction cost. So it's like the materials being used so it doesn't have to be to you just trying to get an index guide as to how far it has moved. 00:41:34:11 - 00:41:40:21 Speaker 2 Yeah, whether it's 5%, 4%, just that sort of indication of how far we've gone. 00:41:41:25 - 00:42:09:28 Speaker 1 Well, so anyone else want to ask any questions before I there's one more. But if in a least take this opportunity you might have your children myself here, I order there's one more and this is more sort of a comment Chintan It says there are that there are a lot of new functionalities and enhancements coming and coming out of last year. 00:42:09:28 - 00:42:16:11 Speaker 1 So thank you for that. But can, can rightly take care that all these are updated in the knowledge base as well. 00:42:16:29 - 00:42:37:14 Speaker 3 Yeah, yeah, yeah, yeah. That is a one of the challenges in it Bob, that if we are doing rapid feature development, how we keep the KB articles up to date so that so so we realize this as a challenge and it takes time to actually go and update KB articles and videos and etc.. So that is why we are taking a slightly different approach going forward. 00:42:38:21 - 00:43:05:15 Speaker 3 Now we are promoting more often in app guides. So when we release a new feature, you will suddenly see a pop ups coming up saying, Hey, have you realize this is a new feature released in particular version? I do want to do a walkthrough, so which is what we call walkthrough guides, and we have partnered with a third party called Pendal, which is a management tool where we can create all those guides that integrate with S&P features. 00:43:06:01 - 00:43:26:19 Speaker 3 So we'll be looking to use more of that. So as a user, when you're using the system, you can straight away see that guide. You can snooze the guide or so you can come back and do that made up, or you can just use the that is around. So that actually helps you to understand these new features and how it functions, etc.. 00:43:27:10 - 00:43:28:05 Speaker 3 Hopefully that helps. 00:43:28:28 - 00:43:51:22 Speaker 1 No, thank you. Thank you, gentlemen. So now there are two major questions and there are a lot of thank you comments in the text and a question session. So, you know, but it was a great again, to all of you. You would have been talking to James or Indy or even Johnny in the past as your account manager. 00:43:51:22 - 00:44:12:08 Speaker 1 But no, fortunately, unfortunately, I would say, you know, they have left and I would have taken it over. So any questions you have related to software, you know, you want to reach out to Ron for services and you want to escalate things. Obviously, you know, I'm the person at present who is managing 180 plus lines across Australia, New Zealand. 00:44:12:08 - 00:44:33:23 Speaker 1 So, you know, feel free to reach out to us. And this webinar series is not just two days of webinar, but we are running a whole series of webinars throughout the year. So keep an eye on your email. Sending invites. Some topics might be useful to asset accountants, asset engineers, some might be useful. You know everyone, so please keep an eye on it. 00:44:34:06 - 00:45:00:03 Speaker 1 And the last thing I want to mention is about the brightly conferences as well, which is upcoming in May-June. So you will have more communication from our marketing side and emails from them. So also please keep an eye on them. So that's it guys, and thank you and will provide you the recording in a week time from today. 00:45:00:27 - 00:45:02:27 Speaker 1 Thank you all. 00:45:02:27 - 00:47:05:21 Speaker 3 Thank you. 00:47:05:21 - 00:47:07:28 Speaker 2 Brightly.