Westminster budget holder training October 2015 v2

Budget manager training

City Treasurer’s Department

October 2015

Budget Holder Training October 2015

Firstly…


This session will cover…

Part 1 – 45 minutes – Theory Based•Budget holder roles and responsibilities•Forecasting techniques

Part 2 – 1 hour 15 minutes - Practical•Downloading Agresso budget manager pack•Amending Agresso budget manager pack•Uploading Agresso budget manager pack•Entering accruals and journals

Part 3 – 30 minutes – Combining theory and practice•Making accurate forecasts•Hands on practice supported by Finance Managers


By the end of this session I will…

• Understand my roles and responsibilities in the budget monitoring process

• Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques

• Be able to download my budget holder pack from Agresso

• Be able to enter and upload a forecast in my budget manager pack

• Be able to enter accruals and journals using Agresso

• Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres

Budget Holder Training October 2015From this…

To this…


Budget monitoring – why?


Budget monitoring


Maintain financial control over budgets

Timely and accurate forecasts using Agresso budget monitoring pack

Costs and income are recorded accurately

Base data is amended where necessary – using journals

Report reasons for significant variances - using the comments function

Ensure managers are aware of variances – enables mitigating action

Service Units – Budget ManagersBudget monitoring and forecasting



Understand my roles and responsibilities in the budget monitoring process

• Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques






How do I forecast accurately?


Anticipated future events - examples


Forecasting Techniques

Straight Line method: The forecast is equal to the actual value observed during the last period

Can you think of

an example?

Tip – don’t just assume that all costs have come through for all the last period.


Forecasting Techniques

Mean Average: The average over a period of available data Can you

think of an example?


Forecasting TechniquesDemand led costs:A relationship between 2 separate sources of data exists Can you

think of an example?Demand Led Forecast


What are accruals?• Accruals are adjustments which are made to account for

the fact that there are timing differences between:

- Expenses that have already been incurred but are not yet recorded in the ledger – e.g. emergency placement costs where not possible to raise PO

- Income which has been earned but not yet recorded in the ledger – e.g. government grant paid in arrears

• The principle behind accruals is that income and costs should be recognised in the period in which they are earned or incurred

• Using accruals – gives an up to date position of Westminster’s finances


Types of accrual

(+) Debit

(-) Credit

Expenditure Accrual

(un-receipted invoice)

Income Accrual

(un-billed income)

Automated / System Driven

POs which have

been GRN’d

Sales invoices raised on Agresso

Receipt In Advance(pre-paid income)

Payment In Advance(pre-paid

expenditure)

Budget Holder Training October 2015 When should I accrue?

MATERIALITY

Definition: Would a user of the accounts gain the wrong impression if it is not included?

Amount = greater than £10,000 - CHECK

Nature: Judgements about materiality are made in light of surrounding circumstances (Regulatory framework, statutory targets, political sensitivity).

Receipted or raised on Agresso?


Should I accrue?Situation

You have had to implement 5 emergency care packages for individuals in adult social care, costing £20,000 for the month, but have not yet raised a purchase orderA staff member has attended a training course this month, costing £250

You have received £100,000 in advance payments for leisure subscriptions

I have raised a £30,000 invoice for parks maintenance, but they have not yet delivered the service

Should I accrue?

Yes – the individuals have received the service, the cost is material, but this is not reflected in the accounts

No – although the service has been provided it is not material so would not need to be accruedYes – these payments are for services in future months which we haven’t yet deliveredNo – you should only accrue for goods and services which we have already received or provided




Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques






Part 2 •Downloading Agresso budget manager pack•Amending Agresso budget manager pack•Uploading Agresso budget manager pack•Entering accruals and journals

Budget Holder Training October 2015The monthly timetableWorking Day

Task Responsible Output

WD -5 to 0 Budget Managers update Forecasts on ABW

Budget Managers Forecasts updated and uploaded to Agresso

WD 1 Budget Managers Pack released and Email sent to all Budget Managers

BT SSC Budget monitoring packs fully populated with actual to date, budgets, previous month forecasts and variances.

WD 1 to WD 3

Update Forecasts (if not already done so in WD -5 to 0) and initiate accruals (Accruals must be posted to the system by end of day 2)

Budget Managers Accrual Journals, forecast updated and uploaded to Agresso

WD 3 Approve Accruals Finance Managers

WD 4 Summary Packs uploaded (AM) Corporate Finance Updated actual year end and forecast position from Agresso

WD 4 Commentary on packs (PM) Finance Managers Commentary updated for the current period, risk and opportunities and other information on summary packs

WD 5 Challenge Meetings Finance Managers

WD 6 Finance Review / Changes to forecasts on ABW

Finance Managers Change to Budget Manager forecasts uploaded to Agresso.

WD 7 (AM) Summary Packs updated with final financial position on ABW

Corporate Finance

WD 7 (PM) Finalise Commentary Finance Manager Packs populated with updated commentary (after close engagement with the business)

WD 8 to WD 9

Finalise Report for City Treasurer and EMT

Corporate Finance Report overall financial position for the Councils


Once logged in to Agresso1. Select Information pages2. Open Report ordering3. Click on Revenue Budget Monitoring

Pack4. In the report screen change the

period to the one you require5. Click on Save6. Go to Your ordered reports7. Check the status of your report. It

should say Running8. Click on Refresh9. Check your report status again.

Keep checking periodically until it changes to Finished

10. Click the row of your report and save it to your desktop

• http://lms.rbkc.gov.uk/course/view.php?id=2894

Downloading the budget holder pack…

http://lms.rbkc.gov.uk/course/view.php?id=2894


Downloading the budget holder pack

• Live demonstration - space for notes on page 5

• Top tips and full instructions – can be found on the handout – page 4 and 5





Be able to download my budget holder pack from Agresso



• Be able to enter and upload an accurate forecast from my budget manager for my specific cost centres


Using the budget monitoring pack

• Using the packs can be broken down into 3 areas:

1. Drilling down into the data

2. Amending the forecast

3. Posting the forecast

1) Drilling down into the data

• Breaks down spend or income at a transaction level

• Can see what has / hasn’t gone through the ledger to inform forecast

• Don’t have to go into Agresso to get additional detail


How to: Drill down into the data

1. Select the cell to drill down on2. Click on the PO Drilldown button3. Log in using your normal Agresso

User name and password4. Select the line of the order you want

to drill down further on5. Click Order Line Detail Drilldown6. You will be presented with your drill

down detail to view7. Click Back to PO Drilldown Sheet8. Click Back to Main Sheet

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Note:If you are want to drill down into the actuals or budget then click on the appropriate button in Step 2






3. Posting the data

2) Amending the forecast• As well as drilling down into data in more detail can also

amend forecasts for your cost centres

• You can amend forecasts for non-payroll and payroll

Tip:Any changes you make to the payroll monitoring spreadsheet will automatically link through to the main forecast sheet


Non-payroll

1. Check you are on the correct cost centre

2. Locate the account to be amended

3. Check the Forecast to Last Month

4. Check the total of the Actuals column in the YTD section

5. Check the Purchase Orders total in the Full Year section

6. Select the cell in the Amended Forecast this Month (Budget Manager Section) column for the appropriate account code and enter the new forecast

7. Add a reason for the amendment in Comments

8. Click on Save as appropriate

BUDGET MONITORING REPORT

Financial Year: 2015/2016Period: 06

R1000 SalariesR1002 Reward SchemeR1003 OvertimeR1004 Capitalisation of salary (cr)R1060 HonorariaR1099 Employee Costs Budget OffsetR1100 Agency StaffR1200 Employer's National Insurance ContributionR1300 Employers Pension ContributionR1400 Employee AllowancesR1403 Employee BenefitsR1601 DBS Police ChecksR1650 TrainingR1700 Recruitment costsR1800 Redundancy and Severance PayEmployeesR2800 Insurance - PremisesPremises-Related Expenditure

Cost Centre- WC26741 - Trading Standards

Account Account Desc

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2

Revised Budget Full Year

Purchase Orders

External Commitments

Forecast to Last Month

Projected Variance

475,750 0 0 362,152 -113,598- 0 0 0 0

1,600 0 0 1,600 0(5,000) 0 0 -5,000 0

- 0 0 0 056,652 0 0 0 -56,65242,200 0 0 42,200 -041,309 0 0 66,000 24,691

THIS YEAR (FULL YEAR) 3

Revised Budget To Date

Actual to Date (Incl GRNs)

Adjusted Actual Position

Variance To Date

237,875 173,073 173,073 -64,8020 2,586 2,586 2,586

800 425 425 -375-2,500 0 0 2,500

0 0 0 028,326 0 0 -28,32621,100 -5,873 -5,873 -26,97319,526 15,628 15,628 -3,898

THIS YEAR (TO DATE)4

5

Amended Forecast this Month

Revised Projected Variance

Comments - held at transaction level

346,145 -129,6053,624 3,624

425 -1,1750 5,0000 00 -56,6520 -42,200 Recuitment freeze

31,070 -10,239

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8


Amending payroll

1. Find the account to be amended2. Locate the account to be

amended3. Select the relevant payroll tab4. You can display employee

names using the drop down arrow

5. Find the position to be changed on the sheet and amend the figures in the cells for the affected month in the Manager’s Forecast Section. Any subsequent months’ figures will be changed too.

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5

BUDGET MONITORING REPORT

Financial Year: 2015/2016Period: 06

331,111 189,920 -141,191

Account Account DescRevised Budget To Date

Actual to Date (Incl GRNs)

Adjusted Actual Position

Variance To Date

R1000 Salaries 237,875 173,073 173,073 -64,802 R1002 Reward Scheme 0 2,586 2,586 2,586

Cost Centre- WC26741 - Trading Standards

THIS YEAR (TO DATE)

Actual Drilldown

Budget To Period

1

Revised Budget Full Year

Purchase Orders

External Commitments

Forecast to Last Month

Projected Variance

475,750 0 0 362,152 -113,598

THIS YEAR (FULL YEAR) 2

3


Amending payroll continued6. If you are adding data, do this in

the New Starters and Manual Adjustments section

7. Go back to the cost centre tab and in the Budget Manager Section check the total on the account code row has been updated

8. Enter an appropriate comment to describe the need for the adjustment

9. Click on Save as appropriate

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3. Posting the forecast

3) Posting the forecast

• Once your data is ready you can post your forecasts into Agresso

• They can only be posted twice so make sure you check all values in the forecast cells before saving!

• Make sure you save after posting


Posting your forecast

1. Click Post Current Month BM Forecast

2. You may need to enter your log in details again if it has been a while since you last logged in to the spread sheet. Simply enter your details again and click Login

3. Click OK once the forecast has been posted

4. Save the file

Once your data is ready you can post your forecasts in to Agresso

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Be able to enter and upload a forecast in my budget manager pack




Entering my accruals• PROCESS TBC – JOGINDER TO ADD


Journals• What are they?

• Journals are transactions which move recorded expenditure or income from one cost centre or account code to another

• It only moves the recording of income/expenditure from one part of the accounts to another, it doesn’t result in the actual movement of cash


When should I use journals?

e.g.

•When there is a transaction which has been coded to the wrong cost centre – e.g. A order for a software licence has been coded to WC29653 but needs to be moved to WC29635

•When there is a transaction coded to the wrong account code – e.g. an advertising cost (R4300) has been coded to stationery (R308)

•When there are costs jointly incurred by multiple teams on one purchase order

When shouldn’t I use journals?

e.g.

•For payroll corrections – tell HR and these will automatically be corrected

•For items which have not yet been recorded in the ledger

•For small amounts – assess cost .v. benefit of journal – e.g. is it worth moving an incorrect £5 telephone charge?


Entering a journal


Journals - tipsBoth sides of the journal must balance – for expenditure you wish to deduct from a cost centre/account code use a negative (minus) figure

All journals must have a cost centre and account code. There are also further information codes (categories 2-6) which you may be required to add – for example if you were doing a journal for capital expenditure you would need to include a project code (cat 2)Take time to think about the information you need to include in the description – make it useful, but think about confidentialityIf you are unsure of one of the codes to use, you can use the search function on Agresso

For complex journals with many lines, it might be easier to use the journal template form, although this does not contain as helpful data validation prompts so you need to be confident with which codes to use







Be able to enter accruals and journals using Agresso



Part 3•Entering the forecast into your budget monitoring pack•Practicing forecasting techniques and skills you will be likely to use


Give it a go…Could you make these types of adjustments to your budget pack?

Payroll adjustments

1) New starter

2) A leaver

3) Staff member going part-time

4) Staff member receiving pay increase

Non-Payroll adjustments

1) A cost which is in your cost centre which shouldn’t be

2) A forecast for the year based on profiled spend over the first 6 months

3) The actual spend exceeds budget to date – calculate a revised projection







Be able to enter accruals and journals using Agresso

Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres


Where can I go to get more help?

Budget Manager e-learning: http://lms.rbkc.gov.uk/course/view.php?id=2112

ServiceNow: How do I? Guides for agresso:

https://btlg.service-now.com/LFSharedServices/hdi_pft_agresso.do

Your finance manager

Colleagues





Westminster budget holder training October 2015 v2

Documents

Transcript of Westminster budget holder training October 2015 v2