ImprovingOps Planning &Budgeting

Charter : Budget and Forecasting(FinPlan, FinFocus, FinCast, FinFuture, FinAll, FinTastic ...)

Date : Jan 25, 2010Version 1.0

Table of Contents

• Project Charter – Business Rationale – Objectives – Deliverables– Scope– Stakeholders– Strategy– Resources– Project Governance and Processes– Risks and Assumptions– Preliminary Milestones and Schedule

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Budget and Forecasting

Business Reasons for Project• Ministry requires BCIT to provide monthly forecasts that will support

our financial stewardship and fiscal responsibility strategic initiative (Initiative 4 – Financial Stability – Item 20.1)

• Monthly budgeting will provide the timely information required to assist the decision making to support and implement the strategic plan

• Budget managers spend too much time preparing monthly forecasts• BCIT’s current financial and reporting capabilities do not easily support

monthly budgeting and forecasting• New business intelligence platform (Cognos 8) can provide future KPI

Dashboards and other modeling functionality to monitor the Institute’s performance

• Budget and forecasting is not as accurate, up-to-date and timely as required

• Prepare a foundation for multi-year budgeting and forecasting

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Budget and Forecasting

Objectives

• To enable monthly budgeting and use that for more efficient, effective and meaningful forecasting by August 31, 2010

• To consolidate the budget, forecast and reports in one easy to use place by August 31, 2010

• By March 31, 2011 approximately 50% reduction in budget preparation time and 1 Finance FTE will be redirected (time savings will come from subjective estimates as project progresses)

• To improve communication between the various stages of budget development by implementing an automated workflow approval process by August 31, 2010

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Budget and Forecasting

Product and Service Deliverables• A new easy to use Institute wide budget and forecasting

software system by May 30, 2010• Review of current processes and procedures that limit up-to-

date, timely and accurate budgeting and forecasting data and information by March 31, 2010

• Implementation of changes to current processes and procedures to support the collection of up-to-date, timely and accurate budgeting and forecasting data by June 30, 2010

• External training for project team and internal training for budget managers by April 30, 2010

• Plan for ongoing maintenance and support of Cognos TM1 by July 30, 2010

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Budget and Forecasting

Product and Service Deliverables

• A monthly (calendarized) 2010-11 budget by May 30, 2010• Six monthly forecasts by September 30, 2010• Analysis and plan for replacement of existing Cognos

reports by April 30, 2010• A monthly 2011-2012 budget by November 30, 2010

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Budget and Forecasting

In Scope

• Planning and preparation for the 2011-2012 budget (to be decided by Steering Committee)

• Cash flow forecasting• Actual, commitment and budget revenue and expenditure

data for operational and designated funds• Summary financial reporting model for revenue and

expenditure items that can be used for Budget vs. Actual and Forecast to Forecast variance analysis

• Monthly rolling forecasting for the revenue and expenditure by Finance GL account

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Budget and Forecasting

In Scope

• Drill through to Finance transaction level detail• Line item detail planning for expenses• Workflow process for planning and forecasting approvals• Changes to current policy, procedures and processes that

may support better budgeting and forecasting• Service Directors, Operation Managers and Finance Budget

Office• Those people currently providing budget to Institute

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Budget and Forecasting

Out of Scope

• Replacement or upgrade of the current Cognos 7 reporting environment

• Detailed revenue and enrolment planning – driver based modeling• Detailed capital expense planning• Collection of detailed workforce plan required for the annual

planning process• Workforce planning module by position/employee which will

support the monthly rolling forecast and FTE calculations (i.e no HR or Position Control data)

• Revenue recognition for work in progress• Custom modifications to TM1 software

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Budget and Forecasting

Stakeholders

• Finance• Schools – Operations Managers• IPAO• IT Services• Service Department Directors• Entire Institute

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Budget and Forecasting

Strategy

• Use of IBM professional services is critical for success• A BCIT Business Analyst will help with the policy, process and

procedures• Lorcan’s office will provide any required communication

regarding any new financial policy, process and procedures• Chris’s office will provide any required communication

regarding any new operational planning policy, process and procedures

• Paul’s office will provide any required communication regarding any new educational operations policy, process and procedures

• General user community will not use software initially. Access to software and budget and forecast information will expand after project completion.

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Budget and Forecasting

Resources

People• Finance –Brenda O’Brien,

Guntis Grikis, Mato Kulic, Mirela Pop

• VP Education – Janice Baldry• IPAO – Brian Beacham• Ops Mgrs – Susan Geddes,

Sam Mulligan, Brenda Mason • HR – Darlene Hodgson• IT Services – Leo de Sousa,

Ivan But, Peter Wong and Murray Smith, Anne Marie Johnston, Judy Shandler, Carmine Dimarco

Resources

• Facilities– None

• Budget– 160K for software– 100K for IBM services– 20K for IBM training

• Information– IBM Best Practises

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Project Governance and Processes

• Sponsor – Lorcan, Paul, Chris

• Steering Committee– Operations Planning and Budget Improvement Steering

Committee

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Project Management Deliverables

• Draft Project Charter approved by sponsor and submitted to ITS Management by February 9, 2010

• Detailed Scope, Schedule, Resources, Communications, Quality, Procurement and Risk Plans by February 16, 2010.

• Bi-weekly Status reports to Project Team and Sponsor starting February 9, 2010

• Project Closeout Report including ‘Lessons Learned’ by October 31, 2010

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Threats and Opportunities

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Threats and Opportunities

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Assumptions

• IBM will provide consulting services and Cognos TM1 software will be used

• Hardware and software infrastructure for TM1 is currently available

• IBM will train BCIT staff by delegating some of the required project work (knowledge transfer)

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Budget and Forecasting

Preliminary Milestones and Schedule

• Charter, TM1 purchase and IBM consulting approved and signed off by February 9, 2010

• Analysis of current systems and data by February 23, 2010• Draft design of TM1 data structure by March 16, 2010• Programming to create data structures by April 6, 2010• Annual budget loaded by April 30, 2010• Deploy TM1 software and train users by May 30, 2010• 2010-11 budget calendarized by May 30, 2010• First draft forecast completed by June 30, 2010• Six monthly forecasts completed by September 30, 2010• 2011-12 monthly budget created by December 15, 2010• Project close out by December 30, 2010

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Sign-off

• This project is agreed to by

• SponsorsLorcanPaulChris

• Project ManagerMurray

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