Deliver Transparent and Effective Budgets. SAPPHIRE NOW Orlando May 16, 2013

Transcription

1 Deliver Transparent and Effective Budgets SAPPHIRE NOW Orlando May 16, 2013

2 Common issues faced in public sector budgeting Heavily dependent on Microsoft Excel workbooks Multiple legacy budgeting and financial systems Very labor-intensive budgeting and data-gathering processes Personnel is at the line item level and averages are used lack of detail Need for better analysis and better budgeting Difficulty with report requests for slicing and dicing the information in different ways. For example, Show me all expenditures and programs related to job safety programs and health care expenditures. Detailed written justifications are done in Excel and kept to a minimum Performance not directly linked to the budget Inability to view budget programmatically 2013 SAP AG or an SAP affiliate company. All rights reserved. 2

3 SAP Public Budget Formulation The SAP Public Budget Formulation application is a planning and budgeting product that was specifically designed for the public sector It handles many kinds of planning: Budgeting Revenue forecasting Resource allocation Short- and long-term plans Planning for maintenance activities Performance measurement Uses forms of SAP NetWeaver Visual Composer Portal- and Web-based 2013 SAP AG or an SAP affiliate company. All rights reserved. 3

4 CDOT criteria for choosing new planning and budgeting software Software must include standard features common to public sector budgeting Software must be able to provide better standard functionality than planning and budgeting software (BPS) Software must be user-friendly Software must be Web-based Software must be relatively easily adaptable to changes in regulations and legislation Software must work with SAP ERP (in use at CDOT) Software must lend itself to easily reported data 2013 SAP AG or an SAP affiliate company. All rights reserved. 4

5 Benefits of SAP Public Budget Formulation to CDOT Developed for public sector More user-friendly and flexible than previous BPS Contains standard functionality to integrate performance data into budgets and plans It uses the SAP BusinessObjects Business Intelligence (BI) platform as its back end, which CDOT already owns and uses Can do everything BPS did and more Previous and current BPS data and functions migrated to SAP Public Budget Formulation where applicable Contains stages, or a processing and approval chain that provides user security Many modifications to SAP Public Budget Formulation (hierarchies and master data) can be made by CDOT process owners 2013 SAP AG or an SAP affiliate company. All rights reserved. 5

6 How CDOT uses SAP Public Budget Formulation annual budget CDOT s annual budget is created in SAP Public Budget Formulation on a form in SAP NetWeaver Visual Composer SAP Public Budget Formulation contains personnel expenditure planning (PEP) that integrates public sector personnel data into the budget very efficiently Flexible reporting of budget data Simplification of budget creation and reporting Provides transparency to CDOT customers Provides audit trail capabilities Decision package form standard provides all new budget requests in one place in a standard form for ease of tracking and reporting 2013 SAP AG or an SAP affiliate company. All rights reserved. 6

7 How CDOT uses SAP Public Budget Formulation revenue forecasting and resource allocation Although SAP Public Budget Formulation has revenue forecasting functions, CDOT is using its own revenue model and then uploading data into SAP Public Budget Formulation SAP Public Budget Formulation uses functions to separate revenues into more detailed categories SAP Public Budget Formulation inflates an deflates revenues SAP Public Budget Formulation provides revenues for time spans from 1 accounting period to 30 years Forecasted revenues integrate with allocation process Automated allocation to mandatory federal programs Automated distribution of resources to Colorado s planning regions Hierarchy-based for ease of reporting 2013 SAP AG or an SAP affiliate company. All rights reserved. 7

8 How CDOT uses SAP Public Budget Formulation Statewide Transportation Improvement Program (STIP) and long-range plan STIP is a federally mandated, fiscally constrained sixyear transportation plan SAP Public Budget Formulation calculates constraint by CDOT region, program, and fiscal year against program budgeting pools in funds management (FM) functionality Data extracted from and retracted to FM twice daily CDOT users across the state enter data daily Allows for frequent (daily) amendments to the STIP and tracks activity with audit trail Allows a new STIP to be developed while amending a currently approved STIP STIP development is linked to the long-range plan for consistency and adherence to planning processes pursuant to state statutes 2013 SAP AG or an SAP affiliate company. All rights reserved. 8

9 How CDOT uses SAP Public Budget Formulation performance measures and strategic plan Process new to SAP software with SAP Public Budget Formulation Designed to be a central location for all performance data within the department Data-gathering done through the use of the new forms in SAP Public Budget Formulation, replacing spreadsheets, s, phone calls, and meetings Reporting function allows for information to be used for multiple published reports New measures or changes in measurement can easily be added to the software while keeping historical data with the SAP Public Budget Formulation application Forecasts and annual and quarterly data captured and stored in one electronic location Allows for automation of the creation of the yearly strategic plan with reporting tools of SAP Public Budget Formulation Connections between other processes in SAP software and SAP Public Budget Formulation to track progress towards goals outlined in the strategic plan All plans will now exist in a single data repository for future reference 2013 SAP AG or an SAP affiliate company. All rights reserved. 9

10 How CDOT uses SAP Public Budget Formulation Maintenance Levels of Service (MLOS) Uses resource allocation in SAP Public Budget Formulation for total maintenance allocation Based on a set of targets, SAP Public Budget Formulation calculates expenditures and backlog needed to meet targets by maintenance area and activity Data is automatically retracted from SAP software into SAP NetWeaver Business Warehouse for SAP Public Budget Formulation Allows for long-range planning (up to 40 years) of needs for maintenance activities 2013 SAP AG or an SAP affiliate company. All rights reserved. 10

11 Calculations in SAP Public Budget Formulation Some calculations that were in BPS and were developed in SAP Public Budget Formulation include: Congestion mitigation and air-quality reporter Benefits allocation Long-term cash forecasting Equipment usage rate Although not as robust or complex as the full processes, these calculations also benefit from standard features of SAP Public Budget Formulation 2013 SAP AG or an SAP affiliate company. All rights reserved. 11