Financial Model‘An integrated model for STFC’

Draft Blueprint Design v0.1

Project Manager: Mark AffonsoProject Champion: Jane Tirard

Financial Model

• Hybrid solution consolidating data from CCLRC and PPARC legacy systems

• Poor visibility of-cost drivers-contribution from external funding-commitments vs. discretionary spend

• No functionality to support scenario planning and “what-if” analysis

• Planning assumptions not recorded on the system and no KPIs or targets on system

• Integrated, system-based financial model to support dynamic planning and management

• Budget holders and finance teams empowered to participate actively and effectively in the planning process

• Visibility of cost and income drivers for all STFC activities

• Consistent assessment of the financial impact of decisions – scenario planning

• Budgets aligned to strategy and delivery plan; prioritised spending and investment plans

TO

DA

Y

Workshop to clarify cost

model

Workshop on plan/budget/

forecast processes

Tender process with SSC to

engage consultants to deliver model on Hyperion

sofware

Workshop to define reports

and deliverables

Engage consultants, agree firm

requirement and project

plan

Workshops to identify and

elaborate key planning scenarios

Workshops on high-level

requirement and project

plan

Design, build, test, train, roll-out Hyperion

model.

PastWhat we had

PresentWhat we have

Future‘To be’

What is it for?

What-if analysis: scenario planning, different versions of plans and budgets

Reporting: historical data, trends, current year actuals, plan, budget and forecast, narrative

Who is it for?

Financial Model

Operations and Exec Boards

Directorate and

Department

Managers

Project Managers

and Budget Holders

Directorate and

Department Finance

Teams

Director of Finance

and Corporate Finance

Team

Director of Planning

and Corporate Planning

Team

The Financial Model will show how different cost and income elements and organisational units relate to each other and fit into an integrated STFC planning

and budgetary framework.

It will be a medium for financial communication across the entire organisation.

Key benefits

Financial Model Design

Workshops were held in January and February to identify “what-if” scenarios we want the financial model to answer.

Some examples of the scenarios are :- Open or close a facility or site.

- Start or stop or increase or reduce a programme or project. Major time line changes.- Changes in external income (All non-DIUS income. Need to consider volume and profitability).

- Increase / reduction in x% of DIUS funding (need to consider commitment and flexibility).- Increase / reduction in operation days of different facilities (including Observatories).

- Changes in staff headcount.- Changes in overheads.

During February and March we did initial analysis of the scenarios, clarified the scope of the project and finalised the Project Initiation Document and Project Plan.

Further workshops from April to June are defining the cost and income model, planning dimensions, and describing the planning cycle and key processes.

As the methodology is developed we will apply it to realistic “what if" scenarios to test feasibility, robustness and identify gaps.

Representatives from all STFC directorates have participated in the design workshops.

By the end of June we will complete a Blueprint “To Be” design document describing the Financial Model. The document will identify the data, processes, functionality and reports required for the Model.

Consultants will be engaged by SSC to work with STFC to build and implement the Model using Hyperion Planning software. This work will commence early in July and is scheduled to conclude in December 2009 with the delivery of a system for carrying out the 2010 to 2020 planning exercise, preparing annual budgets for 2010/11 onwards and maintaining in-year forecasts.

The implementation will involve a number of phases: - elaborate the system definition and design within a Hyperion context; - build/prototype; - test; - train users; - roll out; - establish on-going support.

Implementation Plan

-A team of 5 to 7 people, drawn from the group currently involved in the design phase, will provide oversight of the implementation phase for STFC. This group will include Director of Finance, Jane Tirard, and Director of Planning, Graham Brooks. It will interact closely with the SSC Hyperion governance structure. Mark Affonso will lead the group as Implementation Manager and STFC Business Analyst.

- We will identify 2-3 staff with aptitude to become STFC Super Users of Hyperion . They will receive formal training in Hyperion and work very closely alongside the consultants to build, test and rollout the model and train other users.

- Subject Matter Experts with knowledge of specific business areas across the full range of STFC’s activities will be consulted on the system definition and design and at other key stages.

- We will identify approximately 70 prospective STFC Hyperion “licenced” users, including staff responsible for preparation and management of plans, budgets and forecasts. Appropriate training will be provided for all of these staff and a selection of them will also be involved in user acceptance testing.

- A communication plan will introduce the model to a wider audience who will provide data via the Oracle Project modules and via the licenced users and receive reports communicating financial performance and informing decision making.

Implementation Plan