PLANNING

Project Kickoff

July 12, 2005

AGENDA

Project Organization/Introduction of Team Members and Advisory Board

Hyperion Planning Overview Status Update Basic Design Considerations Anticipated Timing and Deliverables Users Training Communication

Project Organization

Sponsors/OwnersRobin Beck

Scott DouglassBonnie Gibson

)

Health System Sponsors/Owners

Keith Kasper, Kathy Bramwell

John Kilroy

Project Organization

Sponsors/OwnersRobin Beck

Scott DouglassBonnie Gibson

Advisory BoardBonnie Gibson, ChairKathy Bramwell, SOMJohn Horn, FinanceJohn Keane, LibraryTrevor Lewis , WhartonEileen Mayko, Anbg. CtrJanet Plantan, GSELisa Prasad, FRES Ramin Sedehi, SASPeter Sepe, Business Srvs.Tom Stump, SEASGreg Tausz, FinanceMary Lee Brown, AuditBill Turner, VPULJeanne Curtis, ISCTBD, Provost OfficeMike Harris, EVP

Health System Sponsors/Owners

Keith Kasper, Kathy Bramwell

John Kilroy

Project Organization

Sponsors/OwnersRobin Beck

Scott DouglassBonnie Gibson

Project Management/Core TeamFran Seidita: Budget Office

Amy Miller: ISCRoxanne Bataitis: Financial Systems

ISC Staff

Budget Office Staff

Finance Staff

(Comptroller, Training, Systems)

School and

Center Staff

Advisory BoardBonnie Gibson, ChairKathy Bramwell, SOMJohn Horn, FinanceJohn Keane, LibraryTrevor Lewis , WhartonEileen Mayko, Anbg. CtrJanet Plantan, GSELisa Prasad, FRES Ramin Sedehi, SASPeter Sepe, Business Srvs.Tom Stump, SEASGreg Tausz, FinanceMary Lee Brown, AuditBill Turner, VPULJeanne Curtis, ISCTBD, Provost OfficeMike Harris, EVP

Health System Sponsors/Owners

Keith Kasper, Kathy Bramwell

John Kilroy

Consultants

Health System Mgmt/Core

Team(Liaison TBD)

Hyperion Planning Overview

Hyperion

86 of the Fortune 100 are customers

300 of the Fortune 500 are customers

Hyperion in business over 23 years

Products in use by over 9,000 companies

5,000+ using Essbase or Planning application for planning and forecasting

#1 Business Performance Mgt (03/2004)

#1 in Financial and Business Performance Management Applications

#1 in Budgeting & Planning

“Visionary” in Corporate Performance Management (10/2004)

Hyperion’s Higher Ed Experience

                                                                    

Why Hyperion Planning?

• Market-leading product

• Superior reporting and analytical capabilities

• Packaged application

• Scaleable

• Customer support

• Consistency of tools/learning curve

• Capacity for future expandability

Why Make a Change?

Pillar

Distributed file system requiring consolidation

Planning

Single, analytical database with real-time updates

Limitations on number of rows(65,000), number of calculations and dimensions

Virtually unlimited scalability

Proprietary technology Open, standards-based architecture

Limited reporting Integrated financial reporting tool, easy-to-use, with HTML or PDF formats

Desktop installation required Web browser, zero desktop footprint

Limited workflow, no visibility into changes Two-way communication workflow with audit logs on all changes

Complex globals (calculations) Graphical business rules generator

No real integration with other systems Open architecture allows integration with ERP, data warehouse or other apps

NO FORECASTING OR PROJECTING Multiple versions within a single database, available at all times, enables continuous forecasting

Hyperion Planning Will Increase Capabilities

Budgeting Current: Multiple budgeting files, time consuming New: One integrated system with Web or Excel input options.

Long-term vision to have organizational metrics drive the plan Consolidation

Current: Slow, inefficient New: Immediate consolidation available, users stay in system

Analysis/Reporting Current: No real analytical or reporting tools in Pillar New: Real-time, powerful reporting and analytical tools

Submission Current: Disconnected and redundant New: Integrated system eliminates manual redundant entry,

improves workflow management, improves data integrity and lowers maintenance

Moving From Transaction Processing to Decision Support

0%

20%

40%

60%

80%

100%

Current To-Be

Transaction Processing

Consolidation

Reporting

Decision Support

Planning and Analysis

On-Line Analysis

Briefing/Budget Books

Notes, Text and other Documentation

Essbase

Hyperion

PlanningWeb Forms

Excel

DataWarehouse

Line ItemDetail

•Drill-down to transaction detail

Status Update

Core Team Members Trained Test and Development Hardware on order Consultants in place (one joint with Health

System) Preliminary Design work completed and

documents being prepared Once Design document completed,

coordination will begin with the Health System Next Steps: Prototype, Production Build,

Acceptance Testing, User Training, Rollout

Basic Design Considerations

Implementation of Penn’s Chart of Accounts Nomenclature: Scenarios and Versions Time Periods Methodology for Pre-populating Forecasts Detailed Salary Planning EB Calculation

Implementation of Penn’s Chart of Accounts ORG-Program-CREF

Fund

How do we want to look at our budgets/objects? (Template 1A vs. Single Page Format)

Potential Budget Entry Form 0Budget Expense in General Purpose Funds

ORG FUND PROG CREF GO

Actual Budget Forecast Budget Budget BudgetFY05 FY06 FY06 FY07 FY08 FY09

EXPENSES Academic Salaries

Non-Academic SalariesTotal Salaries & WagesEmployee BenefitsTotal Compensation

Expand Current ExpenseExpand Travel & EntertainmentExpand 5200 Faculty Domestic TravelExpand Supplies and Minor ExpenseExpand Non-Capitalized EquipmentExpand Rentals & Leasues

Debt ServiceCapital FundingOther Capital TransactionsStudent ExpenseTotal Direct ExpendituresExpense CreditsTotal Direct Exp. After Expense Credits

Potential Budget Entry Form 0Budget Expense in General Purpose Funds

ORG FUND PROG CREF GO

Actual Budget Forecast Budget Budget BudgetFY05 FY06 FY06 FY07 FY08 FY09

EXPENSES Academic Salaries

Non-Academic SalariesTotal Salaries & WagesEmployee BenefitsTotal Compensation

Expand Current ExpenseExpand Travel & EntertainmentExpand 5200 Faculty Domestic TravelExpand Supplies and Minor ExpenseExpand Non-Capitalized EquipmentExpand Rentals & Leasues

Debt ServiceCapital FundingOther Capital TransactionsStudent ExpenseTotal Direct ExpendituresExpense CreditsTotal Direct Exp. After Expense Credits

Potential Budget Entry Form 1 Budget Expense in General Purpose Funds

ORG-PROG-CREF FUND GO

Actual Budget Forecast Budget Budget BudgetFY05 FY06 FY06 FY07 FY08 FY09

8300-7000-1234 FUND 000000EXPENSES

Academic Salaries Non-Academic SalariesTotal Salaries & WagesEmployee BenefitsTotal Compensation

Expand Current ExpenseExpand Travel & EntertainmentExpand 5200 Faculty Domestic TravelExpand Supplies and Minor ExpenseExpand Non-Capitalized EquipmentExpand Rentals & Leasues

Debt ServiceCapital FundingOther Capital TransactionsStudent ExpenseTotal Direct ExpendituresExpense CreditsTotal Direct Exp. After Expense Credits

Potential Budget Entry Form 2Budget Revenue in General Purpose Funds

OBJECT FUND GO

Actual Budget Forecast Budget Budget BudgetFY05 FY06 FY06 FY07 FY08 FY09

OBJECT 4920 MISC INCOME FUND 000000ORG-PROG-CREF

8300-7000-12348300-7000-56788300-7000-90128300-7000 Total8300-7110-12348300-7000-5432

8300-7110-9012 8300-7110 Total 8300 Total 8310-7000-1234 8310-7000-5678

8310-7000-90128310-7000 Total8310-7688-65438310-7668-34568300-7668-90128300-7668 Total8310 TotalPROV TOTAL

Potential Budget Entry Form 3Budgeted Revenue and Expense in Designated

Funds ORG-PROG-CREF FUND GO

Actual Budget Forecast Budget Budget BudgetFY05 FY06 FY06 FY07 FY08 FY09

8300-7000-1234 FUND 412345REVENUE TOTALEXPENSES

Academic Salaries Non-Academic SalariesTotal Salaries & WagesEmployee BenefitsTotal Compensation

Expand Current ExpenseExpand Travel & EntertainmentExpand 5200 Faculty Domestic TravelExpand Supplies and Minor ExpenseExpand Non-Capitalized EquipmentExpand Rentals & Leasues

Debt ServiceCapital FundingOther Capital TransactionsStudent ExpenseTotal Direct ExpendituresExpense CreditsTotal Direct Exp. After Expense Credits

8300-7000-5678 FUND 412345REVENUE TOTALEXPENSES

Academic Salaries Non-Academic SalariesCONTINUED for each ORG-PROG-CREF combination in selected fund…

FY 2007-FY 2011 Budget Planning ProcessAll Funds Overview CENTER NAME Budget Schedule Page 1

(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m)Actual Actual Actual Orig. Bgt. Actual Orig. Bgt. Y-E Proj. Proposed Proposed Proposed Proposed Proposed

($000s) FY02 FY03 FY04 FY05 FY05 FY06 FY06 FY07 FY08 FY09 FY10 FY11REVENUES

Undergraduate Regular Tuition GuaranteeUndergraduate Fin. Aid GuaranteeUG Fin. Aid Incentive & Inv. Income Transfer

Net Undergraduate GuaranteeUndergraduate Special & Summer TuitionUndergraduate Special Fin. AidGraduate & Professional TuitionGraduate & Professional Fin. AidSpecial Programs TuitionGeneral FeeOther FeesTotal Net Tuition & Fees

Investment Income Overhead--Investment Funds

Total Investment IncomeGift Income Overhead--Gift Funds

Total Gift IncomeGrant & Contract RevenueIndirect Cost Recovery--Grant & Contract

Total Sponsored Program RevenueOther Income (including Sales & Services)Total Direct RevenuesSubventionCommonwealth AppropriationTotal Subvention & PA Appropriation

General Resource TransfersBank & Other TransfersFunding from Allocated Costs

Total Resource TransfersTOTAL REVENUES & TRANSFERSEXPENSES

Academic SalariesNon-Academic Salaries

Total Salaries & WagesEmployee BenefitsTotal CompensationCurrent Expense

Debt ServiceCapital FundingOther Capital Transactions

Total Capital TransactionsStudent Aid ExpenseTotal Direct Expenditures(less: Expense Credits)Total Dir. Exp. After Expense Credits

Library ChargesFacilities Maintenance ChargesUniversity Services & Development Charges

Total Allocated Cost ChargesTOTAL EXPENDITURESCURRENT-YEAR OPERATING (SUR)/DEFFinal Year-End AdjustmentsCurrent Year Cash Effect--Other ActivityCURRENT-YEAR CASH POSITION (SUR)/DEFPrior-Year Cash Position (Sur)/DefCUMULATIVE CASH POSITION (SUR)/DEF

Single Page Format

Template 1A (excerpt)UNIVERSITY OF PENNSYLVANIA

Responsibility Center Management (RCM) Model -- Proposed for Fiscal Year 2007

OUTLINE FORMAT FOR BUDGETS AND BEN FINANCIAL REPORTSWITH OBJ ECT CODE AGGREGATIONSTO BE USED WHEN REPORTING ON ALL FUND GROUPSALTERNATIVE B: KEEPS OLD, ADDS NEW TUITION ROWS & CREATES NON-OPERATING SECTION

Description Object Codes Included 1A

1 REVENUES & TRANSFERS

2 DIRECT REVENUES

3 TUITION, FEES & CONTRA-REVENUE AID4 Net Tuition & Aid:5 Net Undergraduate Guarantee:

Undergraduate Regular Tuition (pre-FY2007) 4100 6 Traditional Undergraduate Degree Programs 4105 7 Undergraduate Tuition Guar Adj 41048 Undergraduate Fin Aid 41819 Undergraduate Fin Aid Guar Adj 419410 Undergraduate Fin Aid Incentive 419511 UG Fin Aid Endow Income Transfers 419612 Total Net Undergraduate Guarantee Sum rows 6-11 K00113 Undergraduate Summer Tuition (pre-FY2007) 4110,4112 K00214 Traditional Undergrad Degree Programs, Summer 4115 15 Ph.D. Degree Programs 4106 16 Graduate & Prof Regular Tuition (pre-FY2007) 410117 Graduate & Prof Special Tuition (pre-FY2007) 4103 18 Graduate, Professional & Special Degree Programs 4107 19 Ph.D. Degree Programs, Summer 411620 Graduate & Prof Summer Tuition (pre-FY2007) 4111,4113 K00321 Graduate, Prof & Special Degree, Summer 4117 22 Graduate & Prof Fin Aid 4180,4182,4184,4185,4186,4190 K004

23 Undergraduate Special Tuition 410224 Certificate, Exchange & Non-Degree Programs 4108 25 Certificate, Exchange & Non-Degree, Summer 411826 Undergraduate Special Fin Aid 4183

27 Total Net Tuition & Aid Sum rows 12-26 K00528 Special Programs 4120-4127,4129 K006

29 General Fee 4131,4132 K00730 Other Fees 4130,4133-4136,4139,414x K00831 TOTAL TUITION, FEES & CONTRA-REV AID Sum rows 27-30 K009

32 INVESTMENT INCOME

33 Inv Income Before Overhead & Admin:

34 AIF Investment Income 4710,4993 K010

35 SIF Investment Income 4700,4703,4720,4730,4740,4750,4760,4770 K011

36 TIF Investment Income 4780,4783 K123

37 Investment Income Reallocation 470938 Investment Income Reclassification 481039 Total Inv Inc Before Overhead & Admin Sum rows 34-38 K01240 Overhead - Investment Funds 4792,4793 K01341 Admin - Investment Funds 4790,4791 K014

42 TOTAL INVESTMENT INCOME Sum rows 39-41 K015

Nomenclature and Time Periods

Nomenclature Scenarios: Budget, Actual, Forecast Versions: Draft and Final

Time Periods How many years of actuals? How far ahead do we forecast? ADJ incorporated into June

Separate reporting cube Ability to report on more years and in more

detail than we display in Planning

Pre-Populating the Forecast

Keep Original Budget intact for comparative purposes

Start with Original Budget broken down by month

Replace individual months with actuals at month end

Each quarter responsibility centers review and revise forecast based on YTD actuals and expectations

Subsequent quarters start with prior forecast updated for new actuals

Detailed Salary Planning

As in Pillar, Responsibility Centers can elect to build up salary plans person by person

Staff position numbers will be pre-populated Which Faculty? This initial implementation will not replace

SALINC feed to payroll. That would be a future project

EB Calculations

Standard EB: no problem

Dependent Tuition for government and non-government grants: requires some additional calculations

Dependent Tuition for Service Centers: changing org to be charged is problematic. Can we change our practice?

Anticipated Timing and Deliverables

Forecast and Variance: Late Fall Budgeting

December – January: some schools may choose to do the first submission (First? Winter? Draft?) in Planning, others in Pillar.

Second submission (Second? Spring? Final?) will be done in Planning

Backup Plan: Pillar through Spring, consolidate in Planning (internal to Budget Office)

Users

Types Planners (231) Interactive (20) View Only (36)

Numbers: Responsibility Centers need to evaluate deployment

Security Approach

Training

Hyperion Web Training is an option

On-line vs. classroom

Generic vs. Penn specific

Initial (rollout) vs. ongoing

Issues of timing, cost, ongoing maintenance

Communication

Thursdays at 4:00: The Planning Open House. Anyone can come and see what has been accomplished during the previous week

Web site: Budget Office web site will have a Planning Update link (soon)

Regular e-mail updates to participants and Responsibility Center senior BAs

Next Advisory Board Meeting: review the prototype, probably mid August

Summary

Project is underway: intensive effort during the summer by core team

Timetable is aggressive Within the next few weeks we’ll have a reality

check on what we can accomplish by when We value your feedback:

Budget@pobox.upenn.edu

or any of the Budget Office staff