Modern public sector budgeting with Sherpa
Transcript of Modern public sector budgeting with Sherpa
Modern public sector budgeting with Sherpa
PS700SP - Vision
September 25, 2019
Speakers
2
Christian Fuellgraf
Director, State and Local
David Farrell
CEO, Sherpa Government
Solutions
About Grant Thornton Public Sector
3
Office locations
Reach
59 offices spread across 30
states and Washington D.C.
135 customers at 36 Federal
agencies and 72 state and local
customers in 19 states
PeopleMore than 1000 public
sector professionals
At Grant Thornton Public Sector, we are
passionate about helping executives
and managers at all levels of
government maximize their performance
and efficiency in the face of ever
tightening budgets and increased
demand for services.
1
2
3
Budget system evolution and where they fit in
4
Budgeting today
Topics
1
View of the budget office and typical challenges being addressed
Sherpa overview
Historical View of the Budget Office
5
• Nice shoes
• I found it!
• Where's the fire?
A change has already taken place, but no one noticed …
Transparency, accountability, and visibility are expected and assumed
Expectations are the same for government as they are for your bank – real time information and accuracy matter
The CFO has emerged more publically as the business leader of government – the "M" now counts
What has
evolved
Functional requirements have remained consistent
Work-flow processes have not significantly changed over time
Expected budget outcomes are about the same
What has
remained
the same
Public Sector Budgeting & Financial Management Changes
6Now, it’s all about the analytics
Existing Resources and Tools Make it Difficult to Deliver to Expectations
7
• Dependence on spreadsheets for formulation and not just as a tool
• Limitations on text capabilities
• Limited Integration of budget types – operating, capital, personnel, grants, long-term planning
• Legacy systems have limited functionality and difficult processes
• Inability to accurately project what-if scenarios
• Limited ability for on-the-fly reporting – the hallway discussions
• Alignment of strategy to outcomes and performance measures
• Limited or no ability to view or budget by program
• Ease of budget adjustments in a single system – a single version of the truth.
• Limited ability for strategic analysis
Fast access to accurate and detailed financial information is required
The Market has Evolved and That is Good News for Government
SpreadsheetsCommerical
Planning Tools
Dedicated Public Sector
Budget Products
8
• Many companies are investing in new products and enhancing existing offerings to address the requirements of all sizes, types and levels of government
• Significant out of the box functionality addressing many common requirements –with ability to configure to the “how” of individual clients
• Recognizing the importance of public budgeting experience and expertise in the software development and system deployment
Where Budget Systems fit within ERP and When to do it
9
Pre-1997 Classic Best-of-Breed
1998 to 2014Modern ERP
2015 to PresentPostmodern ERP
No Core ERPFunction-Oriented
Core ERPData-Oriented
Core ERPProcess-Oriented
ERP SuiteCollections/AR
(Custom)
Order Mgmt.Manufacturing
(Mainframe)
GL, AP, FA(Package)
Payroll(Outsourced)HR
(Package)
Timekeeping
E-Recruit
Budget
E-Procure
TalentManagement
AR AP GL
FA Inventory Payroll
Order Management
Manufacturing
Payroll
E-Travel
Core
ERP
A Single Version of the Truth
10
Impacts
Supplemental Budgets
Demographic
changes
Base Budget
& Estimates
Salary
& Benefits
Loss of Grants
Performance and Service Demands
Analysis & Reporting
Legislative Priorities
Economic Downturn
Collective Bargaining
Incremental Budgeting
Zero-Based Budgeting
Initiative and Activity Budgeting
Program Budgeting
Performance-Based Budgeting
Budget Approaches
Agency/Department Budgeting (Requests)
Central Executive Budgeting (Reviews/Recommendations)
Legislative Budgeting (Adoption)
Budget Execution: Spending Plans Allotment/Allocation, Budget/Position Control
Budget Processes
Operating Expenditure Budgets
Personnel Expenditure Forecasts
Capital Budgets
Revenue Budgets
Grant Budgets
Long-Term Planning (6 years+)
Budget Types
Financial Plan/Spending Plans
Adopted Budgets (Budget Control)
Reports
Budget Documents
Budget Outputs
Budgeting Today
• The Evolving Goal in 2020 and beyond is a Single Version of the Truth
Enabling Strategic Analysis.
• Must be able to link budget and financial resources to service
demands, results and performance
• Seamless integration of all budgeting: Operating, Personnel, Grants,
Transportation, Capital
• Hardening your government for the future – preparing for shocks
• Budget teams build great budgets, not great budget systems
11
12
13
Personnel Cost Forecasting
• Integration with Infor HR and Payroll Data
• Projections for any number of years with pay period detail
• Scenarios for in-year analysis / bargaining unit negotiations
Employee Detail from Infor What-if Scenarios
14
Flexible Budget Forms
• Base, decision package, capital, assets, transfers, other types of data
• Can configure online / in workshops to see changes in action
• Budget for Positions by Classification / benefits automatically assigned
Position Detail
Budget Detail – Base Form Type ExampleCapture Narrative and Scenarios
15
Dashboard Views
16
Dashboard Views
17
Budget to Actuals Monitoring and Forecasting
18
Strategic Planning and Peformance Mgmt.
Transforming your organization: Optimizing performance to finance
technology (Executive Forum)
Robert Schwartz, Grant Thornton | 2:15 – 2:35 pm | New Orleans Ballroom
Tuesday, September 24
Hear more from Grant Thornton
Thursday, September 26
The healthcare workforce of the future
Danielle Miller, Grant Thornton | 2:30 – 3:15 pm | Room 263
Meeting today’s healthcare financial challenges through improved asset
management
Bob Hersh, Bill Slama and Ken Deakyne, Grant Thornton | 3:30 – 4:15 pm | Room 266
The evolution of smart governance
Paul Folkers, Grant Thornton and Governor Martin O’Malley, Maryland | 3:30 – 4:15 pm
| Room 274
The best is yet to come: Long-term benefits of cloud adoption
Chris Lilley, Grant Thornton | 1:00 – 1:20 pm | Hub—Theater 3
Modern public sector budgeting with Sherpa
Christian Fuellgraf, Grant Thornton and Dave Farrel, Sherpa | 1:00 – 1:45 pm
| Room 355
Hospital 4.0 – Capitalizing on the next evolution of healthcare
Dave Reitzel and Bill Slama, Grant Thornton | 2:00 – 2:45 pm | Room 263
How to transform assets into a strategic advantage
Bob Hersh and Nick Morteo, Grant Thornton | 10:00 – 10:45 am |
Room 355
Wednesday, September 25