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Improve Agency Financial Compliance and Deliver Actionable, Accurate Financial Reporting

Oracle Public Sector EPM Team5.9.2013

Enterprise Performance Management

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making purchasing decisions. The development, release, and timing of any features or functionality described for Oracle’s products remains at the sole discretion of Oracle.

Safe Harbor Statement

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Today’s Agenda

• Introductions

• Oracle EPM Overview

• Performance Management CapabilitiesScorecard and Strategy ManagementPlanning & BudgetingCost & Profitability ModelingFinancial Close & Consolidated Reporting 

• Application Demonstration

• Question & Answer

•Wrap Up

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Infrastructure

Transactional Systems

Enterprise PerformanceManagement

Systems that service the transactions of the enterprise. These transactions drive the enterprise’s operations.Transactional systems fall into the following categories: Finance Organization Products Customer

Methodologies, metrics, processes, and systems used to monitor and manage the business performance of an enterprise.

Three Primary Software Categories

ORACLE - HYPERION

Basic hardware/software that enables computing and communications within the enterprise. Categories are: Computers, operating systems & storage Networks (WAN, LAN and telecom) Application and Web servers Databases

ERP and EPM: Complementary Perspectives

• General Ledger• Accounts Receivable• Accounts Payable•Human Resources• Inventory• Fixed Assets• CRM• Supply Chain Management

• Financial Data Quality• Performance Based Budgeting/Planning• Predictive Analysis / Advanced Analytics • Scorecarding / Dashboarding • Financial Consolidation & Compliance • Financial & Operational Modeling• Hierarchy Management • Production-quality Reporting

ERP (Transaction) Systems

Oracle EBS

EPM (Perf. Mgmt) SystemOracle Hyperion

Transaction Systems: Help drive Agency efficiencies (automation of processes)

Performance Management Systems: Help drive Agency effectiveness &

accountability

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

What The Agencies Say: Why Hyperion?

• Better Decisions and Allocation of Scarce Resources– Capability to easily model multiple financial and budget scenarios to

evaluate alternatives and forecast results– Ability to model program costs and ability to absorb cuts

• Increased Productivity– Purpose built for budget/finance users; simple analysis and reporting– Streamlined Budget Book and other production and publishing – Centrally managed to ensure standards and timeliness

• Improved Accuracy and Confidence in the Numbers– “Single version of the financial truth” directly from source systems– Integration with the existing ERP, legacy and Oracle applications– Data validation and audit trails providing transparency and visibility

Hyperion’s Rating in the Industry

Source: Gartner (March 2012)

Gartner Critical Capabilities for Public Sector EPM Products

Financial Consolidation & Reporting Performance Based Budgeting & Planning

Oracle EPM Government CustomersPerformance and Cost Management

Selected Provincial, State & Local Customers

Worldwide Customer BaseCommunications Media Financial Services Consumer Technology

Energy Industrial Retail Life Sciences Services/Other

Enterprise Performance Management Overview

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

Reports and/orBooks

Production Quality Print

Web Distribution

Reporting Tools: Financial ReportingEnterprise Reporting Available Immediately

Consolidated Financials, Budget Book & PAR

• Define a Publication with sections and subsections

• Automatic Table of Contents

• PDF output or a static HTML web site

• Book scheduling options

• Multiple source document input

Integration with Microsoft Office

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Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

Turn-key Integration with Source Systems

– Pre-configured Adapters

– Support for meta data and data

– Drill-through to source detail• Web Forms• Financial Reports• MS-Office

Audit Trails Integrate Controls questions Store current and historical

mapping definitions Store supporting documents

Data Collectionand Transformation Read and interpret any

G/L trial balance file Mapping validation against

target system dimensions Data integrity checking

against data validation rules

Internal Controls Source financial document

archival Prepackaged audit and

internal control reports Comprehensive role based

security

RepeatableProcesses

Single standard and defined solution for any target application

Standardized database schema Standard upward data certification process

Data Quality and Transformation

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EPM Applications

Drill-Down for both Actuals and Budgets

Data Quality

Drill-through to Source DetailsInsight into Action in a Single System

Enterprise Hierarchy Management‐Maintain comparability year over year

• Hierarchy and dimension management for EPM applications

• Collapse separate structures into a single maintenance structure

• Enforce system constraints and business rules

• Publish changes for each specific systems as needed

Questions?

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

Communicate Strategy, Performance and Results

• Measure outcomes and monitor progress at regular intervals

• Understand results and align actions to achieve maximum benefit

• Quickly make adjustments as needed to successfully achieve the agency mission and goals

Oracle Scorecard & Strategy Management

• Graphic Visualization of Strategy:

– Strategy Maps / Trees– Cause and Effect Maps– Custom Visualizations

• Scorecards

• Collaboration– Initiatives– Threaded Discussions– Related Documents– Action Links– Agents

Key Performance Measures

• Performance Tracking– Against Target / Trending– Threshold Assessment

• Ownership Definition

• Collaboration• Watch Lists• Drill to Analysis• Action Links• Agents

• Threaded Discussions

• Related Documents

A Collaborative Environment for Performance

• Dashboard integration– Embed scorecard visualizations

into dashboards to foster broadinteractive analyses

• KPI Agents – To monitor performance

even when you can’t

• Mobile Alerts and Dashboards

• Collaboration and Document Links

• Drag & Drop Configuration

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

Public Sector Planning Challenges

• Approvals – many levels of review and negotiation

• Disconnected – sometimes not reflecting mission realities

• Cost – consumes too many resources and time

• Inflexible – cumbersome to change as priorities change

• Iteration – submission, revision, pass-back, adjustments

• Complexity – across programs, across authorization committees, across departments

Agency Office of Budget

Program B Program C

OMB

Program A

• Complete Formulation and Execution• Salaries, Expenses and FTE Planning• Working Capital Funds, Revolving Funds

• Formatted Data Forms, Reports, & Dashboards

• Flexible workflow and other process control

• Unlimited Scenarios and Versions

• Driver-based planning

• Microsoft Office Integration

• Integration to multiple source systems

Hyperion Public Sector Planning & BudgetingSupporting the Complete Budgeting Process

Public Sector Planning and BudgetingAccelerate Workforce Planning

• Position and/or Employee expense budgeting

• Project and evaluate the impact of employee compensation and benefits

• Forecast the impact of new positions, workforce reductions, contract proposals

• Summary view of requests for funding

• Text editor and formatting of narratives

• Add multiple public and/or private notes

• Add multiple public and/or private attachments that are either documents or URLs

Decision Packages: Flexible Budget Requests

Budget Book Publication

• Define a Publication with sections and subsections

• Automatic Table of Contents

• PDF output or a static HTML web site

• Book scheduling options

• Multiple source document input

The Market Leading Budgeting and Planning Solution

#1Planning and

Budgeting

•Integrated and robust•Build on Essbase•Budget in Excel or Web•Used by thousands of organizations globally

Public Sector Planning and Budgeting• Complete budgeting system with workforce planning module• Integration with Agency data source(s)• Support for management of budgetary processes• Budget book preparation• Cost analysis• “What if” and scenario planning

Commercial off the Shelf (COTS) Software• Maintained and enhanced by Oracle• Configurable by functional and budget users

Scalable & Adaptable• Supports Department HQ and Bureaus/OpDivs• Multiple planning processes (expense, capital, etc).

Ranked #1: Gartner Evaluation - Critical Capabilities for Public Sector Planning Products

Oracle Hyperion Performance Management

Demonstration

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

Effectively Manage Costs and Allocate Resources

• A user-driven Performance Management application that• Activity Based Costing

• Working Capital Fund Allocations

• Measures, allocates and assigns Cost and Revenues

• Computes Cost for Agencies, Programs and projects

• Provides scenario modeling for decision making

Oracle Hyperion Cost Management

Users can build, audit and validate their allocation model through a graphical process

Ease of Model Maintenance

Users can define one business rule to do multiple allocations

Formulas are automatically generated

Out-of-the-box traceability map and validation reporting

Out-of-the-box discovery and allocation resolution validations

Step5: Validate Model

A visual allocation traceability map to show allocation transparency. This map can be generated from any point to any point, and can be navigated forwards-and-backwards.

Healthcare Comm & Media

Hi-TechMfg &

DistributionRetailGovt / Non Profit Services

Oracle Hyperion Cost Management Customers

Financial

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

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Streamline the Financial Close Cycle

1. Finance Owned and Operated – Finance owns both: the results and the system.

2. Purpose Built Functionality – Out-of-the-box financial capabilities –Iterative design and construction

3. Open and Agnostic – Bi-directional, data and meta-data connectivity from multiple sources

4. Internal Controls and Compliance – Full audit controls and segmentation of duties

GL’sData Cleansing Consolidation Internal Reporting

& AnalysisExternal Reporting

& Compliance

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Solving Financial Management Challenges

• Account Hierarchies – Point Accounts, Component Units

• Report Reconciliation – Notes, Eliminations, Publishing, etc.

• Account Crosswalks - Additions, Deletes, Changes, Year-end Rollover, etc.

• Auditor Recommendations – Edit checks, account balance checks, etc.

• Regulatory Compliance – GTAS, Other ongoing OMB, GASB, OMB requirements

• General System Issues – Availability, Reconciliations, Security, Rounding, New functional requirements

• Automate annual roll-over process

• Produce other management reports

• Supports multiple what-if hierarchies and scenarios

• Derives custom financial calculations

• Collects and consolidates data outside GL:– Rolling Forecast– Taxes– Headcount– Leases– Products / Services– Health & Safety Measures– Other agency-specific metrics

HFM Extends the Value of a Single Instance

46Copyright © 2009, Oracle and / or its affiliates. All rights reserved.

HFM: “Straight Through Processing” Merging Process and Applications into Single, Integrated, Automated and Sustainable Environment

Integration:• Data and metadata integration• Data quality checks• Error reports• Facilitates drill back from Statements to TB

Financial Data QualityManagementGLs

Hyperion Financial Management

Data Manipulation:• Workflow / Validations• Auditable Adjustments• Allocations by Programs/ Goals• Eliminations (inter/intra-agency)• Supporting Documents

Financial Reporting and Ad Hoc Queries• Statements (balance sheet, net cost, budgetary resources, etc• Notes • FACTS• Treasury Closing package• Smart View - MS Office Integration• Multi-dimensional…alternate hierarchies – report today on USSGL report in the future on GTAS, Programs

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2

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Copyright © 2008, Oracle and/or its affiliates. All rights reserved. 48

Validation Reports

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Inter/Intra Agency Reconciliation

• Out of the box functionality• Detail Reporting on out of balances• Email Alerting

Program 1

Bureau2

Agency

Bureau 1

Fund 1 Fund 2 Fund 3 Fund 4

Program 2

Program 3

Data Forms – Departments input supplemental dataHyperion Financial Management System Capabilities -

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Department of Veterans AffairsConsolidated Federal Financial Statements

“The Department of Veterans Affairs (VA) completed another successful year by receiving an unqualified audit opinion for the 9th consecutive year from our external auditors . . . the Hyperion Financial Management reporting system, was used to produce the quarterly and consolidated financial statements. This system is now completely producing VA’s consolidated financial statements using a standardized and repeatable process.”

Robert J. HenkeChief Financial Officer

Budgeting & Planning

A PLATFORM FOR BETTER DECISIONS AND IMPROVED PERFORMANCE

Strategy Management

Financial Management Cost Management

ExcelXML

Legacy/OtherFinancials / ERP HR / Payroll

Common Reporting & InteractionFinancial Reports Dashboards Other

Common Integration & AnalysisBi-Directional Drill-through Data Quality

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Planning @Speed of Business

• 7x processing speed

• More users participating in planning process

• More interactive scenarios

• Adoption of rolling forecasts

• Driver based planning

No

of u

sers

Model Complexity

Oracle Exalytics is the industry's first in-memory machine that delivers the fastest performance for business intelligence and planning applications

Oracle’s Engineered Systems Strategy

Data Warehousing and Database Consolidation

Cloud Computingand ApplicationConsolidation

Business Intelligence

andEPM Applications

Oracle Federal EPM Solutions Factory

For More Information . . .

• Andy Powell – Account Manager (EPM)Andrew.Powell@oracle.com

• John Green – EPM Solutions ConsultantJohn.Green@oracle.com

To learn more about Oracle Enterprise Performance Management:http://launch.oracle.com/?SLQ42013

To view online demo of Oracle Hyperion Financial Management: Click Here:

To view online demo of Oracle Hyperion Planning & Budgeting: Click Here:

Q U E S T I O N S

A N S W E R S

Thank You!

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