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 Modules Finance 560 users Portal CRM 690 users HR 1245 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 wBudget in current day dollar amounts wMinimum of 4 planning budget stages = 4 planning budget ledgers –BASE –ELT –DRAFT –FINAL w‘BUDGETS’ ledger remains final ledger for reporting purposes wScenario’s are used for creating different planning models at each stage wAlternative scenario’s are always calculated from scenario ‘BASE’.

Assumptions/Business Rules cont… wLimited Access: only authorised users can make changes to budget ledger wBudgeting phase can control which ledger is available for adjustment wBudget for ‘normal’ Council activity years 2-20 will be extrapolated wFor future years, all budgets will be loaded to Period 1 wAll budgets will be entered at summary accounts level wForecast 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 Ledger INITIAL scenario Yr 1 ‘SOURCE’ Ledger nVision Reports Query Reports Crystal Reports BASE Ledger INFLATION scenario Yr 1-20 BASE Ledger ‘XXX’ scenario Yr 1-20 ELT Ledger ‘XXX’ scenario Yr 1-20 ELT Ledger INFLATION scenario Yr 1-20 DRAFT Ledger INFLATION scenario Yr 1-20 DRAFT Ledger ‘XXX’ scenario Yr 1-20 FINAL Ledger ‘XXX’ scenario Yr 1-20 FINAL Ledger INFLATION scenario Yr 1-20 Parameter Control Page Security BASE Ledger INITIAL scenario Yr 2-20 BASE Ledger PROJECTS scenario Yr 2-20 ELT Ledger INITIAL scenario Yr 1-20 ELT Ledger PROJECTS scenario Yr 1-20 DRAFT Ledger INITIAL scenario Yr 1-20 DRAFT Ledger PROJECTS scenario Yr 1-20 FINAL Ledger INITIAL scenario Yr 1-20 FINAL Ledger PROJECTS 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 wAn extension of existing budgeting function in PeopleSoft Financials V 8.4 wLedger Parameters Control Page wData Entry Pages (Financial); Budget and Forecast data wData Entry Page (Non-Financial) wSummary Accounts Tree

Summary of modifications: Ledger Parameters Control Page wLedger Parameters Control page: A new page to control which fiscal year, Ledger, scenario and period is available for change in the data entry pages. wRestricted access via specific security role

General Ledger Parameter Control Page

Budget data Entry wTwo new pages in GL; one for viewing and updating budget data and the other for viewing and updating forecast data. wA 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 wContinuation process of improvement to meet new requirements wUpgrade to PeopleSoft Financial V.9: migrate customisation to new version wBudgeting module in Financial V.9?

Any questions or comments?

Private Bag Manukau City 2104 New Zealand Ph