DEFENDABLE ANALYTICS

OnlineBudgetingModule System OverviewZMFS 2019 Users ConferenceMichael Lau

Budget 3.0 - Highlights

System Enhancements• Speed• Large Data Sets• Customizable to Meet Client Needs• Base Budget Generation• Increase Historical & Forecast Years• Multiple Scenarios• NIM Generation & Interface via ALM• Additional Reporting Hierarchies• File Export/Import Flexibility• Reporting – Native & Excel

Budgeting Components (2020)

Budgeting Database

NIM(ALM)

Non-InterestIncome/Expense

Payroll(by Employee)

CapExFixed Asset

System Design

• Online Only (No Desktop Version)• Simple Uniform User Interface• Simple Data Architecture• Flexible & Customizable to Meet Client Needs• NIM Planning via ALM or Budgeting• Linked ALM Portfolios to G/L Chart of

Accounts

Data Architecture

Use Mnemonics to Reference Fields Instead of Dates• CYA – Current Year Actual• LYA – Last Year Actual• CYB – Current Year Budget• NYB – Next Year Budget• CYF – Current Year Forecast • Optional Additional Historical Periods (Maximum of

5 Years)• Optional Additional Budgeting Periods (Maximum

of 5 Years)

Main MenuOrganized by Function

Utilities (New)Increase User Control over Database

System SetupBeginning of Implementation

Chart of AccountsMain Screen

Chart of AccountsReport Hierarchies – 10 Schemas

Grouping Codes – User Defined, Unlimited

Chart of AccountsScreen Display Hierarchy – 7 Levels

Plan CentersMain Screen

10 Organizational HierarchiesDisplay Hierarchy – 7 Levels

Base Budget Generation

Base Budget“BB”

Adjustments“ADJ”

CalcEngine

RateDrivers

Formulas Planning AccountGrouping

HistoricalData

Plan Formulas

Formulas - Sample• Annualize CYA

• Annualize CYA to Date, Increase by Rate Driver and Spread Evenly Over Remaining CYF

• Compound• Calculate Next CYF by Increase of Latest CYA Period with Rate

Driver• Subsequent CYF Increase by Previous Period with Rate Driver

• Historical• Increase CYA+LYA by Rate Driver and Spread Evenly over CYF

• Seasonal• Calculate Remaining CYF with Corresponding LYA and Rate

Driver• Target Chg%

• Decompounded Growth to Reach a Target Percentage

Rate Drivers

Columns Across – Corp + 25 RegionsRows Down – Unlimited, User DefinedBase Rate Scenario + 3 Others

Rate Drivers• G/L Accounts & Planning Centers Grouped

for Rate Driver Assignments• Region Assignment by Combination of G/L &

Cost Center• Set of Rates for Current Year Forecast• Set of Rates for Next Year Budget

Data Upload File Format

Excel or CSV File FormatsFile Layout Defined by Header Row

Net Interest MarginOption #1 - NIM Computed Entirely Within ALM

• ZM Desk or Online ALM Clients• Current Position & Assumptions Established in ALM• New Growth Layered In (via Import) by GL/Cost Center

Option #2 – Budgeting Software Forecast• ZM Desk or Online ALM Clients• Current Position & Assumptions Pulled From ALM • New Growth Modeled Within Budgeting Software

Recommendation – Combination Approach• Option #1 – Current Position & New Growth• Option #2 – Last Minute Growth Adjustments

Payroll Module• Obtain Information From Personnel File - Payroll

Processor• Import Template to Upload Personnel Information• Forecast of:

• Salaries & Benefits• Taxes• Insurance

• Personnel Categories:• Full Time• Part Time• Temporary

CapEx Module

• Project Planning for Capital Expenditures• Forecast Funding Requirements• Forecast Additional Expense Related to

CapEx Expenditures

Fixed Asset File

• Provided by Client via Fixed Asset System• Forecast Consists of Straight Line Depreciation• Import Directly Into Budgeting

Budgeting Components

Budgeting Database

NIM(ALM)

Non-InterestIncome/Expense

Payroll(by Employee)

CapExFixed Asset

Reporting

Questions?

Michael LauProduct Manager, OnlineBudgetingZM Financial Systems919.241.5304 Direct919.493.0029 SupportMichael.Lau@zmfs.comwww.zmfs.com