Transcript PLANNING - University of Pennsylvania
PLANNING
Project Kickoff July 12, 2005
AGENDA
Project Organization/Introduction of Team Members and Advisory Board Hyperion Planning Overview Status Update Basic Design Considerations Anticipated Timing and Deliverables Users Training Communication
Project Organization
Sponsors/Owners
Robin Beck Scott Douglass Bonnie Gibson
Health System Sponsors/Owners
Keith Kasper, Kathy Bramwell John Kilroy )
Project Organization
Sponsors/Owners
Robin Beck Scott Douglass Bonnie Gibson
Advisory Board
Bonnie Gibson, Chair Kathy Bramwell, SOM John Horn, Finance John Keane, Library Trevor Lewis , Wharton Eileen Mayko, Anbg. Ctr Janet Plantan, GSE Lisa Prasad, FRES Ramin Sedehi, SAS Peter Sepe, Business Srvs.
Tom Stump, SEAS Greg Tausz, Finance Mary Lee Brown, Audit Bill Turner, VPUL Jeanne Curtis, ISC TBD, Provost Office Mike Harris, EVP
Health System Sponsors/Owners
Keith Kasper, Kathy Bramwell John Kilroy
Project Organization
Advisory Board
Bonnie Gibson, Chair Kathy Bramwell, SOM John Horn, Finance John Keane, Library Trevor Lewis , Wharton Eileen Mayko, Anbg. Ctr Janet Plantan, GSE Lisa Prasad, FRES Ramin Sedehi, SAS Peter Sepe, Business Srvs.
Tom Stump, SEAS Greg Tausz, Finance Mary Lee Brown, Audit Bill Turner, VPUL Jeanne Curtis, ISC TBD, Provost Office Mike Harris, EVP
Sponsors/Owners
Robin Beck Scott Douglass Bonnie Gibson
Project Management/Core Team
Fran Seidita: Budget Office Amy Miller: ISC Roxanne Bataitis: Financial Systems Consultants ISC Staff Budget Office Staff Finance Staff (Comptroller, Training, Systems) School and Center Staff
Health System Sponsors/Owners
Keith Kasper, Kathy Bramwell John Kilroy
Health System Mgmt/Core Team
(Liaison TBD)
Hyperion Planning Overview
Hyperion
86 of the Fortune 100 are customers 300 of the Fortune 500 are customers Hyperion in business over 23 years Products in use by over 9,000 companies 5,000+ using Essbase or Planning application for planning and forecasting
#1 in Financial and Business Performance Management Applications #1 in Budgeting & Planning #1 Business Performance Mgt (03/2004) “Visionary” in Corporate Performance Management (10/2004)
Hyperion’s Higher Ed Experience
Why Hyperion Planning?
• • • • • •
Market-leading product Superior reporting and analytical capabilities Packaged application Scaleable Customer support
•
Consistency of tools/learning curve Capacity for future expandability
Why Make a Change?
Pillar Distributed file system requiring consolidation Limitations on number of rows(65,000), number of calculations and dimensions Proprietary technology Limited reporting Desktop installation required Limited workflow, no visibility into changes Complex globals (calculations) No real integration with other systems NO FORECASTING OR PROJECTING Planning Single, analytical database with real-time updates Virtually unlimited scalability Open, standards-based architecture Integrated financial reporting tool, easy-to use, with HTML or PDF formats Web browser, zero desktop footprint Two-way communication workflow with audit logs on all changes Graphical business rules generator Open architecture allows integration with ERP, data warehouse or other apps Multiple versions within a single database, available at all times, enables continuous forecasting
Hyperion Planning Will Increase Capabilities
Budgeting
Current: Multiple budgeting files, time consuming New: One integrated system with Web or Excel input options. Long-term vision to have organizational metrics drive the plan
Consolidation
Current: Slow, inefficient New: Immediate consolidation available, users stay in system
Analysis/Reporting
Current: No real analytical or reporting tools in Pillar New: Real-time, powerful reporting and analytical tools
Submission
Current: Disconnected and redundant New: Integrated system eliminates manual redundant entry, improves workflow management, improves data integrity and lowers maintenance
Moving From Transaction Processing to Decision Support
100% Decision Support 80% Reporting 60% Consolidation 40% 20% Transaction Processing 0% Current To-Be
Planning and Analysis
On-Line Analysis Excel Web Forms Briefing/Budget Books Hyperion Line Item Detail Essbase Planning Notes, Text and other Documentation Data Warehouse
•Drill-down to transaction detail
Status Update
Core Team Members Trained Test and Development Hardware on order Consultants in place (one joint with Health System) Preliminary Design work completed and documents being prepared Once Design document completed, coordination will begin with the Health System Next Steps: Prototype, Production Build, Acceptance Testing, User Training, Rollout
Basic Design Considerations
Implementation of Penn’s Chart of Accounts Nomenclature: Scenarios and Versions Time Periods Methodology for Pre-populating Forecasts Detailed Salary Planning EB Calculation
Implementation of Penn’s Chart of Accounts
ORG-Program-CREF Fund How do we want to look at our budgets/objects? (Template 1A vs. Single Page Format)
Potential Budget Entry Form 0 Budget Expense in General Purpose Funds
ORG FUND PROG CREF Actual FY05 Budget FY06 Forecast Budget FY06 FY07 Budget FY08 Budget FY09
Expand Expand Expand Expand Expand Expand
EXPENSES
Academic Salaries Non-Academic Salaries Total Salaries & Wages Employee Benefits Total Compensation Current Expense Travel & Entertainment 5200 Faculty Domestic Travel Supplies and Minor Expense Non-Capitalized Equipment Rentals & Leasues Debt Service Capital Funding Other Capital Transactions Student Expense Total Direct Expenditures Expense Credits Total Direct Exp. After Expense Credits
GO
Potential Budget Entry Form 0 Budget Expense in General Purpose Funds
ORG FUND PROG CREF Actual FY05 Budget FY06 Forecast Budget FY06 FY07 Budget FY08 Budget FY09
Expand Expand Expand Expand Expand Expand
EXPENSES
Academic Salaries Non-Academic Salaries Total Salaries & Wages Employee Benefits Total Compensation Current Expense Travel & Entertainment 5200 Faculty Domestic Travel Supplies and Minor Expense Non-Capitalized Equipment Rentals & Leasues Debt Service Capital Funding Other Capital Transactions Student Expense Total Direct Expenditures Expense Credits Total Direct Exp. After Expense Credits
GO
Potential Budget Entry Form 1 Budget Expense in General Purpose Funds
ORG-PROG-CREF FUND Actual FY05 Budget FY06 FUND 000000 Forecast FY06 GO Budget FY07 Budget FY08 Budget FY09
Expand Expand Expand Expand Expand Expand
8300-7000-1234 EXPENSES
Academic Salaries Non-Academic Salaries Total Salaries & Wages Employee Benefits Total Compensation Current Expense Travel & Entertainment 5200 Faculty Domestic Travel Supplies and Minor Expense Non-Capitalized Equipment Rentals & Leasues Debt Service Capital Funding Other Capital Transactions Student Expense Total Direct Expenditures Expense Credits Total Direct Exp. After Expense Credits
Potential Budget Entry Form 2 Budget Revenue in General Purpose Funds
OBJECT FUND Actual FY05 Budget FY06 FUND 000000 Forecast FY06 GO Budget FY07 Budget FY08 Budget FY09 OBJECT 4920 MISC INCOME ORG-PROG-CREF
8300-7000-1234 8300-7000-5678 8300-7000-9012
8300-7000 Total
8300-7110-1234 8300-7000-5432 8300-7110-9012
8300-7110 Total 8300 Total
8310-7000-1234 8310-7000-5678 8310-7000-9012
8310-7000 Total
8310-7688-6543 8310-7668-3456 8300-7668-9012
8300-7668 Total 8310 Total PROV TOTAL
Potential Budget Entry Form 3 Budgeted Revenue and Expense in Designated Funds
ORG-PROG-CREF FUND GO Forecast FY06 Budget FY07 Budget FY08 Budget FY09
Expand Expand Expand Expand Expand Expand
8300-7000-1234 REVENUE TOTAL EXPENSES
Academic Salaries Non-Academic Salaries Total Salaries & Wages Employee Benefits Total Compensation Current Expense Travel & Entertainment 5200 Faculty Domestic Travel Supplies and Minor Expense Non-Capitalized Equipment Rentals & Leasues Debt Service Capital Funding Other Capital Transactions Student Expense Total Direct Expenditures Expense Credits Total Direct Exp. After Expense Credits
Actual FY05 Budget FY06 FUND 412345 8300-7000-5678 FUND 412345 REVENUE TOTAL EXPENSES
Academic Salaries Non-Academic Salaries
CONTINUED for each ORG-PROG CREF combination in selected fund…
Single Page Format FY 2007-FY 2011 Budget Planning Process All Funds Overview (a) ($000s) REVENUES
Undergraduate Regular Tuition Guarantee Undergraduate Fin. Aid Guarantee UG Fin. Aid Incentive & Inv. Income Transfer Net Undergraduate Guarantee Undergraduate Special & Summer Tuition Undergraduate Special Fin. Aid Graduate & Professional Tuition Graduate & Professional Fin. Aid Special Programs Tuition General Fee Other Fees
Total Net Tuition & Fees
Investment Income Overhead--Investment Funds Total Investment Income Gift Income Overhead--Gift Funds Total Gift Income Grant & Contract Revenue Indirect Cost Recovery--Grant & Contract Total Sponsored Program Revenue Other Income (including Sales & Services)
Total Direct Revenues
Subvention Commonwealth Appropriation
Total Subvention & PA Appropriation
General Resource Transfers Bank & Other Transfers Funding from Allocated Costs Total Resource Transfers
TOTAL REVENUES & TRANSFERS EXPENSES
Academic Salaries Non-Academic Salaries Total Salaries & Wages Employee Benefits
Total Compensation
Current Expense Debt Service Capital Funding Other Capital Transactions Total Capital Transactions Student Aid Expense
Total Direct Expenditures
(less: Expense Credits)
Total Dir. Exp. After Expense Credits
Library Charges Facilities Maintenance Charges University Services & Development Charges
Total Allocated Cost Charges TOTAL EXPENDITURES CURRENT-YEAR OPERATING (SUR)/DEF
Final Year-End Adjustments Current Year Cash Effect--Other Activity
CURRENT-YEAR CASH POSITION (SUR)/DEF
Prior-Year Cash Position (Sur)/Def
CUMULATIVE CASH POSITION (SUR)/DEF (b) Actual FY02 (c) Actual FY03 (d) Actual FY04 (e) Orig. Bgt.
FY05 CENTER NAME (f) Actual FY05 (g) Orig. Bgt.
FY06 (h) Y-E Proj.
FY06 (i) Proposed FY07 (j) Proposed FY08 (k) Proposed FY09
Budget Schedule Page 1
(l) Proposed FY10 (m) Proposed FY11
Template 1A ( excerpt )
UNIVERSITY OF PENNSYLVANIA Responsibility Center Management (RCM) Model -- Proposed for Fiscal Year 2007 OUTLINE FORMAT FOR BUDGETS AND BEN FINANCIAL REPORTS WITH OBJECT CODE AGGREGATIONS TO BE USED WHEN REPORTING ON ALL FUND GROUPS ALTERNATIVE B: KEEPS OLD, ADDS NEW TUITION ROWS & CREATES NON-OPERATING SECTION
1A Description Object Codes Included 1
REVENUES & TRANSFERS
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
DIRECT REVENUES TUITION, FEES & CONTRA-REVENUE AID Net Tuition & Aid: Net Undergraduate Guarantee:
Undergraduate Regular Tuition (pre-FY2007) Traditional Undergraduate Degree Programs Undergraduate Tuition Guar Adj Undergraduate Fin Aid Undergraduate Fin Aid Guar Adj Undergraduate Fin Aid Incentive UG Fin Aid Endow Income Transfers
Total Net Undergraduate Guarantee
Undergraduate Summer Tuition (pre-FY2007) Traditional Undergrad Degree Programs, Summer Ph.D. Degree Programs Graduate & Prof Regular Tuition (pre-FY2007) Graduate & Prof Special Tuition (pre-FY2007) Graduate, Professional & Special Degree Programs Ph.D. Degree Programs, Summer Graduate & Prof Summer Tuition (pre-FY2007) Graduate, Prof & Special Degree, Summer Graduate & Prof Fin Aid 4100
4105
4104 4181 4194 4195 4196
Sum rows 6-11
4110,4112
4115 4106
4101 4103
4107 4116
4111,4113
4117
4180,4182,4184,4185,4186,4190 K001 K002 K003 K004 23 24 25 26 Undergraduate Special Tuition Certificate, Exchange & Non-Degree Programs Certificate, Exchange & Non-Degree, Summer Undergraduate Special Fin Aid 4102
4108 4118
4183 27 28 29 30 31 32 33 34 35 36 Special Programs General Fee Other Fees
Total Net Tuition & Aid Sum rows 12-26
4120-4127,4129
TOTAL TUITION, FEES & CONTRA-REV AID INVESTMENT INCOME Inv Income Before Overhead & Admin:
AIF Investment Income SIF Investment Income TIF Investment Income 4131,4132 4130,4133-4136,4139,414x
Sum rows 27-30
4710,4993 4700,4703,4720,4730,4740,4750,4760,4770 4780,4783 37 38 39 40 41 Investment Income Reallocation Investment Income Reclassification
Total Inv Inc Before Overhead & Admin
Overhead - Investment Funds Admin - Investment Funds 4709 4810
Sum rows 34-38
4792,4793 4790,4791 42
TOTAL INVESTMENT INCOME Sum rows 39-41 K005
K006 K007 K008
K009
K010 K011 K123
K012
K013 K014
K015
Nomenclature and Time Periods
Nomenclature Scenarios: Budget, Actual, Forecast Versions: Draft and Final Time Periods How many years of actuals?
How far ahead do we forecast?
ADJ incorporated into June Separate reporting cube Ability to report on more years and in more detail than we display in Planning
Pre-Populating the Forecast
Keep Original Budget intact for comparative purposes
Start with Original Budget broken down by month
Replace individual months with actuals at month end
Each quarter responsibility centers review and revise forecast based on YTD actuals and expectations
Subsequent quarters start with prior forecast updated for new actuals
Detailed Salary Planning
As in Pillar, Responsibility Centers can elect to build up salary plans person by person Staff position numbers will be pre-populated Which Faculty?
This initial implementation will not replace SALINC feed to payroll. That would be a future project
EB Calculations
Standard EB: no problem Dependent Tuition for government and non government grants: requires some additional calculations Dependent Tuition for Service Centers: changing org to be charged is problematic. Can we change our practice?
Anticipated Timing and Deliverables
Forecast and Variance: Late Fall Budgeting December – January: some schools may choose to do the first submission (First? Winter? Draft?) in Planning, others in Pillar.
Second submission (Second? Spring? Final?) will be done in Planning Backup Plan: Pillar through Spring, consolidate in Planning (internal to Budget Office)
Users
Types Planners (231) Interactive (20) View Only (36) Numbers: Responsibility Centers need to evaluate deployment Security Approach
Training
Hyperion Web Training is an option On-line vs. classroom Generic vs. Penn specific Initial (rollout) vs. ongoing Issues of timing, cost, ongoing maintenance
Communication
Thursdays at 4:00: The Planning Open House. Anyone can come and see what has been accomplished during the previous week Web site: Budget Office web site will have a Planning Update link (soon) Regular e-mail updates to participants and Responsibility Center senior BAs Next Advisory Board Meeting: review the prototype, probably mid August
Summary
Project is underway: intensive effort during the summer by core team Timetable is aggressive Within the next few weeks we’ll have a reality check on what we can accomplish by when We value your feedback: [email protected]
or any of the Budget Office staff