1 / 22

Midyear Forecasting: Best Practices for Accurate Data and Analysis

Learn the best practices for accurate data entry, projection methodologies, and analyzing midyear forecasts. Understand the purpose of midyear forecasting and its importance in determining funding, expenditures, and fund balance status. Attend the open lab session for hands-on experience.

butlerdavid
Télécharger la présentation

Midyear Forecasting: Best Practices for Accurate Data and Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Midyear Forecasting March/April 2019

  2. Midyear ForecastingAgenda • Introductions (5 min) • Previous Session Reminders (5 min) • Context and Purpose(s) for a Midyear Forecast (10 min) • Best Practices for Accurate Data (5 min) • Process and Examples (55 min) • What Does It All Mean? (10 min) • Open Lab (30 min)

  3. Midyear ForecastingReminders from Previous Session • Focus was on: • Executive Summaries/Financial Narratives • Determining your audience • Determining your scope • Understanding the annual accounting cycle • Different reporting tools and what data they contain (pros and cons) • Prior period data (i.e, mostly reporting on the past)

  4. Midyear ForecastingContext • Where are we in the accounting cycle? • Budgeted last July • Funded the Budget, including 9/1 commitments in September/October • Spent for half the fiscal year • Transferred many mid-year funding commitments and possibly brought in additional funding • Are we on track so far for the year (past-looking)? • Are we on track for year-end (forward-looking)?

  5. Midyear ForecastingPurpose(s) • To determine whether you are overspending (and whether you have sufficient reserves to cover the overspending) • To determine whether you have sufficient funding to support incremental activities • One-Time Activities vs. Ongoing Activities • To determine your year-end fund balance status and compare to prior year balances • Why are reserve levels trending the way they are? • Are you sustainable? • Are you building reserves for a rainy day to ensure future sustainability?

  6. Midyear ForecastingBest Practices for Accurate Data • Transactions have been entered and approved in a timely fashion • Expenditures have been reconciled and reviewed prior to forecasting • Outstanding Oracle expenditure commitments have been reviewed and suppressed (if appropriate) • Labor schedules are also accurate through the end of the year • Outstanding funding commitments have been gathered from HandSOn

  7. Midyear ForecastingProcess Overview • Download reports • Enter anticipated revenue • Outstanding HandSOn funding commitments • Anticipated gifts or designated revenue • Enter or modify anticipated expenses • Specific Oracle expenditure commitments • Include burn rate when appropriate • Determine end-of-year remaining balance in each PTA • OB then Non-OB • Non-OB: Know how your OB PTAs are funded so you know where to move year-end surplus or deduct for overdrafts • Consolidate information into projected reserve report(s) • Analyze and summarize

  8. Midyear ForecastingProcess Outline • Create Worksheets • Enter Projections • Review Results

  9. Midyear ForecastingProcess Outline • Create and Enter Projections in 3 Worksheets • Projecting Year-End OB Funding and Expenditures • Projecting Year-End Non-OB Fund Balances • Reviewing Non-OB Fund Balance Multi-Year Trend

  10. Midyear ForecastingProcess Outline

  11. Midyear Forecasting1. Projecting Year-End OB Funding and Expenditures Create Worksheet • Using Browser • Navigate to H&S Financial Dashboard in OBI • Open OB Fund Balance Review • Enter Award Number = OB Award and Fiscal to Date GL Period Name = FEB-2019 • Export to and open with Excel • Using Excel • Add three columns: • Additional Funding (R) • Remaining Expenditures and Transfers Out (S) • Projected Balance (T) • Enter formula for Projected Balance (T) = YTD Available Balance (N) + Additional Funding (R) - Remaining Expenditures and Transfers (S)

  12. Midyear Forecasting1. Projecting Year-End OB Funding and Expenditures Enter Projections • Additional Funding • Outstanding funding commitments • HandSOn for HSDO and PPO • Other schools and departments • Drill down to investigate details in OBI or FFIT • Remaining Expenditures and Transfers Out • Projection methodologies (projection methodology will vary by PTA) • Expenditure commitments • YTD annualized • Prior year actuals • Current Year Budget • “Proof of Concept” H&S OBI projection tool • Drill down to investigate details in OBI or FFIT

  13. Midyear Forecasting1. Projecting Year-End OB Funding and Expenditures Review Results • Where OB PTA has a surplus, • How was this PTA funded? • Can all or a portion of the surplus be returned to your Non-OB fund(s)? • Will any of the surplus be required to fund OB PTA deficits? • Where OB PTA has a deficit, • Will all or a portion of the deficit be funded from your Non-OB funds? • These decisions will impact the projected Non-OB fund balances

  14. Midyear ForecastingProcess Outline

  15. Midyear Forecasting2. Projecting Year-End Non-OB Fund Balances Create Worksheet • Using Browser • Navigate to H&S Financial Dashboard in OBI • Open Non-OB Fund Balance Review • Enter Organization = Org Code and Fiscal to Date GL Period Name = FEB-2019 • Export to and open with Excel • Using Excel • Add four columns: • Additional Revenue (Q) • Remaining Expenditures and Transfers Out (R) • OB Funding Adjustments (S) • Projected Balance (T) • Enter formula for Projected Balance (T) = YTD Available Balance (L) + Merged Pool Remaining Payout (M) + Additional Revenue (Q) - Remaining Expenditures (R) + OB Funding Adjustments (S)

  16. Midyear Forecasting2. Projecting Year-End Non-OB Fund Balances Enter Projections • Additional Non-OB Revenue • Designated income • Gift pledge payments • Remaining Expenditures and Transfers Out • OB Funding Adjustments • Projected Balance from Projecting Year-End OB Funding and Expenditures • Review funding sources when projecting pullback of surplus • Determine funding sources when projecting funding of deficit

  17. Midyear Forecasting2. Projecting Year-End Non-OB Fund Balances Analyze Results • Where the Non-OB fund balance is in deficit, • Is the deficit the result of overfunding your OB from this source? • If so, what is the impact on OB PTAs when this funding source is reversed or partially reversed to resolve the deficit? • Will all or a portion of the deficit be funded from your other Non-OB funds?

  18. Midyear ForecastingProcess Outline

  19. Midyear Forecasting3. Reviewing Non-OB Multi-Year Fund Balance Trend Create Worksheet • Using Browser • Navigate to H&S Financial Dashboard in OBI • Open Department Reserve Reports • Select Reserves tab • Enter Award Org Name and Fiscal Year Between 2014-2018 • Export to and open with Excel • Using Excel • Add one column: • 2019 (I) • Enter formula for Grand Total = sum(i7:i28) * adjust depending on number of rows and if also adding subtotals by category

  20. Midyear Forecasting3. Reviewing Non-OB Multi-Year Fund Balance Trend Enter Projections • By Award, add Projected Balance from Year-End Non-OB Fund Balance worksheet to the new column 2019 Analyze Results • Compare projected 2019 fund balances by award, by category, and in total, to prior years balances

  21. Midyear Forecasting3. Reviewing Non-OB Multi-Year Fund Balance Trend Analyze Results

  22. Midyear ForecastingAnalyze Fund Balance Trend What Does It All Mean?

More Related