Ohio Community College CFOs Group

Transcription

1 Ohio Community College CFOs Group Strategic Analysis, Forecasting and Budgeting at Cincinnati State Using Oracle Hyperion Analytical Tools Hyperion Strategic Finance, Planning and Essbase Friday, March 13, :15 AM 12:05 PM ET Columbus State Community College WD Building Room 409 Columbus, Ohio

2 Speaker Introduction Michael J. Geoghegan VP of Finance, Treasurer and Chief Financial Officer Cincinnati State Technical and Community College Michael led the deployment and integration of Oracle s Hyperion Strategic Finance, Planning and Essbase solution to support budgeting, planning, forecasting, modeling and capital optimization strategies; the application serves as the foundation for key strategic decisions associated with financial forecasts, priority-based budgets, deferred maintenance and faculty union negotiations. Michael addressed the College s $20MM backlog of deferred maintenance through the creation of a 5-year financial forecast for operating funds, coupled with an effective funding strategy utilizing Hyperion Strategic Finance. Wayland Ng, CFA Manager, Higher Education EPM & Analytics Huron Consulting Group Wayland has eight years of higher education, finance, and technology consulting experience since joining Huron in His focus is on engagement management and the implementation of planning, budgeting, forecasting, and analytics solutions using Oracle s Hyperion Enterprise Performance Management. Wayland focuses his time on client engagements within the Higher Education industry, and has worked with both private and public universities including The University of Chicago, New York University, Stanford University, Drexel University, Middlebury College, Wayne State University, Kentucky Community and Technical College System, and Cincinnati State Technical and Community College. 2

3 Agenda About Huron Consulting Group Integrated Planning, Budgeting, and Forecasting Overview Cincinnati State Case Study Hyperion Solution Demonstration Q&A 3

4 Huron Overview Higher Education Practice HURON HIGHER EDUCATION STRATEGY Strategy We partner to develop strategies and actionable plans to improve performance at the institutional, school, or department levels. TECHNOLOGY Technology Our solutions help clients better utilize technology to support the core administrative processes across the enterprise, as well as understand and manage the costs associated with technology. OPERATIONS Operations We deliver solutions that span all functional areas including human resources, finance and accounting, procurement, facilities, information technology, research administration, clinical research, student administration, enrollment management, auxiliary enterprises, among others. 4

5 EPM & Analytics Capabilities Delivering process improvement, financial & operational solutions worldwide Performance Management Business Intelligence Enterprise Performance Management Strategic Planning, M&A, Stress Test Enterprise Budgeting & Planning Financial Close Process Profitability & Cost Management Financial Reporting Information & Data Management Information Strategy and Road Map Data Warehouse and Big Data Solutions Data Discovery Essbase Operational Reporting Advanced Analytics Organizational Readiness Process Redesign, Assessment, Roadmaps Private Cloud, Public Cloud & Managed Services Technology Infrastructure & Operations Huron Consulting Group. All rights reserved. Proprietary & Confidential.

6 Common Excel Challenges Capital Planning Current State FP&A/Budget Treasury / Endowment College 1 College 2 College 3 Department 1 Department 2 Department 3 Data Manipulation Challenges Need to manually pull, manipulate, consolidate, and report data in Excel; error prone and time consuming Constrained Scenario Analysis Limited what-if analysis available to analyze impacts to full financial statement and key ratios Multiple Calculation Logic Sets Various drivers and calculations across all models Integration with Source Systems Models are not fully linked to source systems; difficult to model on most recent available data Huron Consulting Group. All rights reserved. Proprietary & Confidential.

7 Integrated Planning Long Range Financial Forecast (5-Year) Long-Term Planning Integrated Financial Statements Treasury Funding What-if Scenario Analysis Seed Budgets with Strategic Targets Hyperion Strategic Finance Hyperion Planning/Essbase Update Strategic Plans with Latest Forecasts Operational Budgeting Salary Budgeting Budget-to- Actual Reporting Projections Annual Budgeting Process (1-Year) Huron Consulting Group. All rights reserved. Proprietary & Confidential.

8 Cincinnati State Case Study Discussion Topics Background Implementation Overview Hyperion Use Cases Hyperion Strategic Finance Hyperion Essbase Hyperion Planning 8

9 Cincinnati State Case Study Background Overview Founded in 1969 Public two-year community college in Cincinnati, Ohio serving Hamilton and Butler counties Provide technical and general education, academic transfer, experiential and cooperative education, and workforce development. Academic Divisions Operational Highlights Business Technologies Center for Innovative Technologies Health and Public Safety Humanities and Sciences 10,800 enrollment (Fall 2014) 200 full-time and 500 adjunct faculty Annual operating budget of $80M Strategic priority implement priority-based budgeting 9

10 Cincinnati State Case Study Performance improvement initiatives implementation overview 2010 Excel based for budgeting and reporting; limited analytics 2012 Implementation of Hyperion Essbase 2014 and Beyond Further Integrating Reporting, and Enhancing Salary Budgeting Process 2011 Implementation of Hyperion Strategic Finance 2013 Implementation of Hyperion Planning 10

11 Cincinnati State Case Study FY 2010 Excel based for budgeting and reporting; limited analytics 2010 Excel based for budgeting and reporting; limited analytics 2012 Essbase 2014 and Beyond Further Integrating Reporting, and Enhancing Salary Budgeting Process 2011 Strategic Finance 2013 Planning Mike Geoghegan joined in 2010 as new VP of Finance, Treasurer and Chief Financial Officer Excel based for all reporting and analytics Needed to re-establish credibility and improve decision making Be more proactive than reactive to financial challenges, higher education trends, and decision making Needed a 5-year strategic outlook / Long Term Planning; not available with current ERP Needed to improve turnaround time on what-if scenarios and generating reports Senate Bill 6 (legislative mandate in Ohio) Needed to move beyond Excel spreadsheets to purpose built financial tools and systems 11

12 Cincinnati State Case Study FY 2011 Implementation of Hyperion Strategic Finance 2010 Excel based for budgeting and reporting; limited analytics 2012 Essbase 2014 and Beyond Further Integrating Reporting, and Enhancing Salary Budgeting Process 2011 Strategic Finance 2013 Planning Previously, focused more on short term modeling in Excel Manual data retrieves and manipulation Needed a 5-year strategic outlook / Long term planning College now has a 5-year long range financial forecasting model Full driver-based P&L, Balance Sheet, Cash Flow, and Ratios Ability to run scenarios in real time to answer what-if questions Evaluate/screen strategic options to help understand impacts to Senate Bill 6 Score Helped with numerous proposals to the board and negotiations with unions, and deferred maintenance Went live with HSF within 4 months With Financial Modeling, we went from Hamburger to Filet Mignon. Bill Quattrone, Controller and Director of Budgeting and Financial Planning 12

13 Cincinnati State Case Study FY 2012 Implementation of Hyperion Essbase 2010 Excel based for budgeting and reporting; limited analytics 2012 Essbase 2014 and Beyond Further Integrating Reporting, and Enhancing Salary Budgeting Process 2011 Strategic Finance 2013 Planning One central data repository for reporting and analytics Takes data from G/L into Essbase for reporting and analytics, slicing and dicing Multi-dimensional database that can be structured in any way to analyze data Moved monthly reporting to Essbase and Smartview Allowed us for a much easier implementation of Hyperion Planning the following year FY13 Budget heavily relied on Essbase and its ad hoc capabilities Allowed us to automate the consolidation process and allowed for real time reporting and analytics Improved overall data accuracy by eliminating the manual linking process Went live with Essbase within 3 months Helping to pave the way to priority based budgeting optimize and strategically allocate resources within the college 13

14 Cincinnati State Case Study FY 2013 Implementation of Hyperion Planning 2010 Excel based for budgeting and reporting; limited analytics 2012 Essbase 2014 and Beyond Further Integrating Reporting, and Enhancing Salary Budgeting Process 2011 Strategic Finance 2013 Planning Driver-based tuition/fees and subsidy model to project revenue budget Essbase was still used in conjunction with Planning as a ad-hoc reporting tool Implemented data submission web forms Gave budget managers ownership of the budget submission Streamlined the budget process through a controlled environment Budget managers were more satisfied and less intimidated by the budget process Provided analytical capabilities to perform benchmarking and profitability analysis across departments and divisions Went live with Planning within 2-3 months Total budget process timeline cut down in half from two months to one month 14

15 Cincinnati State Case Study FY2014 and Beyond Key Strategic Priorities 2010 Excel based for budgeting and reporting; limited analytics 2012 Essbase 2014 and Beyond Further Integrating Reporting, and Enhancing Salary Budgeting Process Financial Metrics Analysis of revenues, expenses, and contribution margin (P&L analysis) Benchmarking analysis to understand relative performance Priority Based Budgeting and Program Costing SSI for FY15 and beyond is based on completion metrics Quality Metrics 2011 Strategic Finance Enrollment is not enough. We must also focus on a quality measurement completion and quality of workforce. Key factors to student success, retention, and graduation rates: Completion plan adopted for FY15 and beyond Providing academic support systems and financial resources Developmental education / increase retention and persistence Improve completion rates in enrollment gatekeeper classes Overall climate survey rating measure quality of workforce 2013 Planning 15

16 Hyperion Demonstration Cincinnati State Hyperion EPM Solution Demonstration Hyperion Planning and Essbase Budget Development Process Reporting and Analysis Hyperion Strategic Finance Long Range Financial Forecasting Driver-based What-if? Scenarios Credit Hours and Tuition Rate State Appropriations Deferred Maintenance Faculty Negotiations Debt Issuance Financial Reporting and Key Ratios (Senate Bill 6) 16

17 Q&A Huron Consulting Group. All rights reserved. Proprietary & Confidential.

18 Speaker Contact Information Michael Geoghegan VP of Finance, Treasurer and Chief Financial Officer Cincinnati State Technical and Community College 3520 Central Parkway, Room 157 Cincinnati, Ohio (513) Wayland Ng, CFA Manager, Higher Education EPM & Analytics Huron Consulting Group 550 W Van Buren St Chicago, IL Mobile: wng@huronconsultinggroup.com 18