CU*BASE BUDGETING TOOLS WEBINAR SERIES

Transcription

1 Welcome to the... CU*BASE BUDGETING TOOLS WEBINAR SERIES A PROTOTYPE FOR COLLABORATIVE DEVELOPMENT Revised!

2 MORE OPPORTUNITIES TO LEARN BUDGETING WEB CONFERENCE SESSIONS Schedule for October Fridays from 2:30p 4:00p ET October 2 1. Getting Ready to Budget October 9 2. Preparing Your Budgeting Assumptions October Using Classical Budgeting Tools October Using Modeling Tools October Analyzing Your Performance To register: 2 Schedule for December Fridays from 2:30p 4:00p ET 1. Getting Ready to Budget December 4 2. Preparing Your Budgeting Assumptions 3. Using Classical Budgeting Tools December Analyzing Your Performance December Using Modeling Tools

3 GETTING READY TO BUDGET UNDERSTANDING HOW TO PREPARE YOUR G/L CHART OF ACCOUNTS AND BUDGETING CONFIGURATIONS Budgeting with CU*BASE Series #1 of 5

4 BUDGETING WEBINAR #1 OF 5: GETTING READY TO BUDGET TODAY S TOPICS Update on the Budget Rewrite (Take 2) Thinking Through the Budgeting Workflow (To Model or Not to Model?) Uploading Budget Data From Your 3 rd -party Budgeting Tool Getting Your Configs In Order For classical budgeting and modeling: Budget Groups Budget Controls Opening Your GL for Budgeting For modeling only: Linking G/Ls for Modeling 4 Choosing Branches to Model - CHANGED

5 HOW TO LEARN MORE 5 BudgetingwithCUBASE.pdf This is an ongoing work in progress and contains a sneak peek at modeling tools still in process... For step-by-step instructions, see the Budgeting with CU*BASE booklet!

6 UPDATE ON THE BUDGET REWRITE (TAKE 2) In the 15.2 Release: Online: October 18 Self Processors: November 9-10 Getting everyone ready to use the classical approach (80% of our CUs) New budget controls Removing the working vs. finalized concepts Other changes to the existing budgeting tools New analysis dashboards for researching your budget assumptions 10-year trends in your G/L In the 15.3 Release: Online: December 6 Self Processors: December Getting an active beta environment ready for CUs who will use modeling for 2016 budgets (20% of our CUs) New analysis tools for researching your assumptions New tools for modeling Projecting year-end balances for member loans and savings Modeling interest income (yield) and dividend expenses (costs) based on balance projections 6 Current loan portfolio analysis

7 TWO APPROACHES FOR YOUR ANNUAL BUDGETING 7 Classical Budgeting Using the CU*BASE Work with CU Budget tool to budget 100% of your income and expense G/Ls One tool for a comprehensive budget, based on your assumptions for income and expense G/Ls ONLY A Dual Approach Using the CU*BASE Work with CU Budget tool to budget income and expense G/Ls not related the member trial balance assets and liabilities 80% of the G/Ls, but only 20% of the overall income statement impact Using the CU*BASE Project Asset/Liability Balances tool to project member trial balance assets and liabilities Using the CU*BASE Model Yield & Cost Projections tool to generate income and expense budgets for trial balance G/Ls 20% of the G/Ls, but 80% of the overall income statement impact

8 GETTING THE LINGO STRAIGHT You budget income and expenses only (we locked this down) 8 You project assets and liabilities only and currently only for member trial balance G/Ls (we locked this down, too) You can manually budget everything, or you can combine manual budgeting with automated tools related to modeling you make this choice Modeling lets you project where you will end up, and then helps you calculate what that means to your income statement Do you project where you think your balance sheet is going, before you budget member interest income and dividend expense? A budgeting assumption means you have the chance to put in a variable to affect the calculation You might use these terms differently, but you need to understand how we use them to navigate this software

9 SEE YOUR BUDGET AS THE GIANT SPREADSHEET IT IS PLAN A COMPREHENSIVE APPROACH AND BUDGET THE SAME WAY YOU ACT CU*BASE budget spreadsheet includes a separate cell for every G/L, with an entry for every month in the year and for every branch of every G/L account 1,700 G/L accts 5 branches = 8,500 G/Ls to budget 8, months = 102,000 cells in your worksheet! 9

10 SEE YOUR BUDGET AS THE GIANT SPREADSHEET IT IS BREAK THE WORK INTO LOGICAL CHUNKS Budgets are created in multiple passes Working a block of your spreadsheet at a time - by Budget Groups or by individual G/L account Logical chunks: Similar calculation assumptions Use your team experts (lending, facilities, marketing, etc.) to validate the totals 10 Segment and detail information for diverse points of view (people who worry about revenue, people who control expenses) Organize the work so you can validate each chunk of your spreadsheet carefully before moving on to the next

11 SEE YOUR BUDGET AS THE GIANT SPREADSHEET IT IS WHY BUDGET GROUPS? 11 Allows you to work and analyze your budget worksheet in manageable-sized blocks Imagine the sub-totals on your financial reports each of those would be a budget group Budget groups will change over time! CU*BASE does not retain the original budget groups as part of the budget records The tools are intended to be dynamic and adapt to your changing organization over time Makes your analysis more useful, as it instantly lets you see trends in the income statement sub-totals you use today Sets the stage for better variance reporting and deep dives into what is working and not working on your income statement

12 THINKING THROUGH THE WORKFLOW TO MODEL OR NOT TO MODEL?

13 BUDGETING STEP BY STEP THE CU*ANSWERS APPROACH Workflow Step Classic Budgeting Only Also Modeling Savings/Loans 1 Set Budget Controls to open the budget for maintenance 2 Create (or maintain) Budget Groups 3 Link G/L accounts for modeling (or review your links) 4 Specify branches with member accounts (if modeling) 5 Project asset balances for member loans (if modeling) 6 Model interest income based on loan balance projections 7 Project liability balances for member savings (if modeling) 8 Model dividend expenses based on savings balance projections 9 Budget non-trial balance income 10 Budget non-trial balance expenses 13

14 GETTING YOUR CONFIGURATIONS IN ORDER BEFORE YOU CALCULATE A SINGLE BUDGET NUMBER

15 BUDGETING STEP BY STEP STEP 1: BUDGET CONTROLS 15

16 BUDGET CONTROLS OPENING YOUR GENERAL LEDGER FOR THE START OF BUDGETING SEASON After last year s release, CUs asked us for controls that kept teammates from writing over work that was already done Access the tool: 1. Budgeting Functions menu (MNBUDG) 2. Lock/Unlock G/Ls for Budgeting 3. Add or Edit 16 For step-by-step instructions, see the Budgeting with CU*BASE booklet! Someone has to take charge, declare it s time to tackle the budgeting project, control who can do what, and when to lock down the final version

17 BUDGETING STEP BY STEP STEP 2: BUDGET GROUPS 17

18 CREATING BUDGET GROUPS BREAK THE WORK INTO LOGICAL CHUNKS Every GL you want to appear in your budget must be in a Budget Group! Use your income statement as a guide Groups are critical for using the Variance Analysis and other dashboards For classical budget calcs, grouping GLs makes it easy to apply the same calculation assumptions to many GLs at the same time Make sure to split savings into sub-groups by application type (Shares/IRAs, Checking, Escrow, and Certificates) Or at least separate savings from time deposits 18

19 CREATING BUDGET GROUPS BREAK THE WORK INTO LOGICAL CHUNKS Access the tool: 1. Budgeting Functions menu (MNBUDG) 2. Budget Groups in Chart of Accounts 3. Full Chart 4. Budget Group Maint 5. Add 19 For step-by-step instructions, see the Budgeting with CU*BASE booklet!

20 BUDGETING STEP BY STEP STEP 3: LINKING G/LS FOR MODELING 20

21 LINKING G/L ACCOUNTS FOR MODELING This configuration lets the system calculate if this, then this For example: if we have $1 million in car loan balances and we assume a portfolio rate of 5%, then we can calculate income from auto loans for next year to be $50,000 To do this you need to link the principal G/L for auto loans to the corresponding G/L for interest from auto loans, then repeat for every member trial balance G/L (asset or liability) Must be a one-to-one ratio: If you have more than one member G/L linked to the same income G/L, you cannot model that G/L! This: NOT this: 21 Member Asset G/L Income G/L Member Asset G/L Member Asset G/L Income G/L

22 LINKING G/L ACCOUNTS FOR MODELING Access the tool: 1. Budgeting Functions menu (MNBUDG) 2. Link G/L Accts for Modeling 3. Full Chart 4. Under G/L type select Assets, Enter to refresh 5. Select an Asset G/L account, Change 6. Auto Pick (Finds the first associated GL from your loan category configurations.) 22 For step-by-step instructions, see the Budgeting with CU*BASE booklet!

23 BUDGETING STEP BY STEP STEP 4: BRANCHES TO MODEL 23

24 This config flag no longer controls anything about the calculations, but is rather an informational-only indicator. It will allow you to hide administrative branches from certain dashboards, but has no effect on the projection calculations. $1 million in car loan balances at a portfolio rate of 5%, = $50,000 as income from auto loans BRANCHES TO MODEL Now you have a total for auto loan income next year How does the system know the difference between configured branches when some of them are related to member accounts, and others are not? Your G/L is configured for 17 branches 1 is your administration building where no accounts are assigned 3 are for your CUSO accounting, with no member accounts assigned 1 is for assigning special project expenses from accounts payable Changes with 15.3! = That leaves 12 branches with member accounts, that track auto loan balances and income 24 This configuration identifies the 12 branches where you will spread the $50,000 income in your budget Configure your branches so it s easier to analyze your financial statements and performance variations

25 OMITTING A BRANCH FROM THE MODELING CALCULATIONS Access the tool: 1. Budgeting Functions menu (MNBUDG) 2. Configure Branches to Model 3. Type a branch #, Enter 4. Uncheck the Include... flag 5. Update (BE CAREFUL: This configuration also stores branch name for other CU*BASE functions!) Changes with 15.3! This config flag no longer controls anything about the calculations, but is rather an informational-only indicator. It will allow you to hide administrative branches from certain dashboards, but has no effect on the projection calculations. For step-by-step instructions, see the Budgeting with CU*BASE booklet! 25

26 TIPS FOR UPLOADING DATA TO YOUR BUDGET USING A THIRD-PARTY TOOL TO RUN YOUR ASSUMPTIONS, THEN USING CU*BASE TO ANALYZE YOUR PERFORMANCE

27 TIPS FOR UPLOADING YOUR BUDGET FIGURES 27 Rules Can upload budget figures to Income and Expense GLs ONLY Amount is populated into the net change field (NETBAL) in GLBALA, not resulting balance Asset and Liability GLs aren t supported until we can change how financial statements report budget figures If your tool does not use branch-level calcs (all $$ under branch 01), you won t be able to drill down to the branch level on CU*BASE dashboards Most common format is CSV (comma-separated value) For step-by-step instructions, see the Budgeting with CU*BASE booklet!

28 NOW ON TO OUR NEXT SESSION