Prepared by: Son Nguyen – Finance Business & Systems Analyst

Budgeting/Forecasting in the General Ledger

Agenda

– Manukau City Council (MCC) Enterprise Applications Overview

– Requirements– Issues– Objectives– How we addressed it – Where to next

PeopleSoft Suite

Enterprise Applications

Mo

du

les

Finance560 users

Portal CRM690 users

HR1245 users

• Asset Management• Billing• Expenses• General Ledger• Payables• Projects• Purchasing• Receivables• Treasury• Financials Portal Pack

•Enterprise Portal

• Human Resources• Time and Labour• Payroll Interface• eCompensation• eProfile• Employee Portal

• Field Service• Marketing• Support• Sales• Integration Management•CTI Integration

• eProcurement

• Investor Portal• Enforcer Portal

• eRecruit• eBenefits• ePay• Directory Interface• Resume Processing• Talent Acquisition• ePerformance

• Mobile Field Service• Mobile Order Capture• Portal Pack• Mobile Sales• CRM Financial Services• CRM for Communications

Requirements

– Long Term Council Community Plan (LTCCP), Local Government Act 2002: requires local councils to produce and regularly update a 10 years long term council plan.

– MCC adopted a planning process for 20 years ahead to deliver clear goals that have been agreed between the Council and the Community

– Long term planning / modeling tool

– Replacement for existing budgeting tool - Camelot and Essbase

– Potential Restructure

Issues

– Historically MCC has used a combination of applications such as Camelot, Essbase, Excel and Word for budgeting and planning purpose with mixed results

– Camelot, existing budgeting tool: • Limited, inflexible, duplication of data and set up• An external application • Reconciliation• Lack of support and in-house knowledge

– Current version of PeopleSoft Financials V 8.4 does have some Budgetary functions but is limited for our needs.

– PeopleSoft EPM – considered. It’s costly, and required longer implementation time frame

Objectives

– To provide an easy, simple to use planning tool for the LTCCP round 2009/10

– To provide better financial planning information for decision making purposes

– To simplify the process by using existing data structures, removing the need for an external application and therefore avoiding the duplication of setup

– To enable multiple scenario analysis based on different assumptions

– To reduce risks around the planning process

– To provide a tool to enable the organisation to perform rolling forecasts

Assumptions/Business Rules

Budget in current day dollar amounts Minimum of 4 planning budget stages = 4 planning budget

ledgers– BASE– ELT– DRAFT– FINAL

‘BUDGETS’ ledger remains final ledger for reporting purposes

Scenario’s are used for creating different planning models at each stage

Alternative scenario’s are always calculated from scenario ‘BASE’.

Assumptions/Business Rules cont…

Limited Access: only authorised users can make changes to budget ledger

Budgeting phase can control which ledger is available for adjustment

Budget for ‘normal’ Council activity years 2-20 will be extrapolated

For future years, all budgets will be loaded to Period 1 All budgets will be entered at summary accounts level Forecast ledger will be a rolling forecast of 18 months, it will

be set up for a period of three fiscal years i.e. towards the end of the first financial year, the next 18 months forecast is in two future fiscal years.

Budgeting Process Data Overview

General Ledger

Budget Enquiry &/or Update screen

DRAFT Ledger

BASE scenario Yr 1-20

ELT Ledger

BASE scenario Yr 1-20

FINAL Ledger

BASE scenario Yr 1-20

BASE Ledger

BASE scenario Yr

1-20

BASE LedgerINITIAL

scenario Yr 1‘SOURCE’ Ledger

nVision Reports

Query Reports

Crystal Reports

BASE LedgerINFLATION scenario

Yr 1-20

BASE Ledger‘XXX’ scenario

Yr 1-20

ELT Ledger‘XXX’ scenario

Yr 1-20

ELT LedgerINFLATION scenario

Yr 1-20

DRAFT LedgerINFLATION scenario

Yr 1-20

DRAFT Ledger‘XXX’ scenario

Yr 1-20

FINAL Ledger‘XXX’ scenario

Yr 1-20

FINAL LedgerINFLATION scenario

Yr 1-20Parameter Control

Page

Security

BASE LedgerINITIAL scenario Yr

2-20

BASE LedgerPROJECTS

scenario Yr 2-20

ELT LedgerINITIAL scenario Yr

1-20

ELT LedgerPROJECTS

scenario Yr 1-20

DRAFT LedgerINITIAL scenario Yr

1-20

DRAFT LedgerPROJECTS

scenario Yr 1-20

FINAL LedgerINITIAL scenario Yr

1-20

FINAL LedgerPROJECTS

scenario Yr 1-20

Forecasting Process Data Overview

General Ledger

Forecast Enquiry &/or Update screen

FORECAST Ledger

FORECAST scenario

P1 to 36

ACTUALS Ledger

Closed periods as part of month end process

nVision Reports

Query Reports

Crystal Reports

Parameter Control Page

Security

FORECAST Ledger

ACTUALS scenario

P1 to 12

BUDGETS Ledger

Fiscal Years 1 – 3

Summarised monthly

View Only

View

Update

First Forecast Period

Copied at end of budget cycle

Summary of modifications

An extension of existing budgeting function in PeopleSoft Financials V 8.4

Ledger Parameters Control Page Data Entry Pages (Financial); Budget and Forecast data Data Entry Page (Non-Financial) Summary Accounts Tree

Summary of modifications: Ledger Parameters Control Page

Ledger Parameters Control page: A new page to control which fiscal year, Ledger, scenario and period is available for change in the data entry pages.

Restricted access via specific security role

General Ledger Parameter Control Page

Budget data Entry

Two new pages in GL; one for viewing and updating budget data and the other for viewing and updating forecast data.

A new page has been created in Projects General Information to capture non-financial planning information

Budget data parameters page

Budget Date Entry Page 1

Budget Date Entry Page 2

Budget Date Entry – Non Financial Info

Non Financial Information Entry

Summary Accounts Tree

Where to next

Continuation process of improvement to meet new requirements

Upgrade to PeopleSoft Financial V.9: migrate customisation to new version

Budgeting module in Financial V.9?

Any questions or comments?

Private Bag 76917

Manukau City 2104

New Zealand

Ph +64 9 263 7100

www.manukau.govt.nz