Hyperion Higher Ed User Group—A
Comprehensive Planning and Reporting Model
for Higher Education: Hyperion Strategic Finance
Andrew Harker, Ed. D
Director of Budget Management, Stanford University
Higher Ed Financial Management

What are the challenges we are facing?
— An increasing desire to have continuous, comprehensive planning
and reporting
— The challenges/struggles of making (external) GAAP-based
financial reporting mesh with (internal) fund accounting-based
reporting
— The systems we have/are putting in are not all that conducive to
this type of reporting (for fund accounting, for higher education)

Board/Senior management expectations sometimes don’t align
with our “reality”
— Yahoo! and Cisco close their books and report in days, every
month
— Dashboarding/KPI is “easy” and “helpful” in Corporate America
— Reports they are used to are “simple”: all money is green
— Reports should be straightforward and easy to comprehend
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
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3 Broad Components

Actual Revenues, Transfers, Expenditures, Assets, & Liabilities
— Coming from the General Ledger (legacy, Oracle, SAP, Banner,
etc.)

Detailed Budget
— Coming from Hyperion Planning, Hyperion Pillar, Excel, etc.
— Most often only for Income Statement items (Revenue & Expense)

Long-Range Forecasting
—
—
—
—
Multiple year, “what-if scenarios”, aggregated data
Done most often in Excel
Usually not integrated into other systems
If multiple units are doing modeling, other units tend to be in the
dark
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What have we been working with at Stanford?




Hodge-podge of financial information systems
Controller’s Office responsible for preparing the external GAAPbasis financial statements using a third-party consolidation tool
University Budget Office coordinates preparation of detailed fund
accounting basis budgets in Hyperion
Long-Range modeling done in Excel
— By multiple units (Central, Med School, Business School)
— Totally disaggregated and disconnected

Variance Analysis and Reporting done as a separate process, in
separate systems
— If tied together at all, nominally tied to detailed budgets only
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University Financial Structure
Stanford Consolidated Financials
University
“Non-formula Units”
(Provost GF Allocations)
Auxiliary Enterprises
School of
Medicine
Graduate
School of
Business
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
Continuing
Studies/
Summer
Session
P. 5
Consolidated Budget by Fund Type
$ in millions
Auxiliary
General
Grants & & Svc Ctr
Funds Designated Restricted Contracts Activities
Projected
2004/05
Total
2,716.6
Total Revenues
746.1
456.2
579.9
905.9
234.3
2,922.4
2,646.7
Total Expenses
Revenues less
Expenses
626.4
426.0
490.5
890.2
390.0
2,823.1
119.7
30.2
89.4
15.7
(155.7)
99.3
(109.1)
(23.8)
(54.5)
(15.7)
153.0
(50.1)
10.6
6.4
34.9
(0.0)
(2.7)
9.9
20.5
387.6
394.0
572.0
606.9
(0.2)
(0.2)
0.6
969.9
(2.1) 1,019.1
69.9
(27.6)
42.3
Transfers
Surplus/(Deficit)
Beginning Expendable Funds
Ending Expendable Funds
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
49.2
P. 6
Statement of Activities to
Consolidated Budget Crosswalk
(in millions of dollars)
Statement
of Activities
Student Income
Sponsored Research Support
Health Care Services
Expendable Gifts in Support of Operations
Investment Income
Special Program Fees and Other Income
Net Assets Released from Restrictions
Total Revenues
Salaries and Benefits
Capital Equipment Expense
Depreciation
Financial Aid
Other Expenses
Total Expenses
Revenues less Expenses
$
$
332
924
230
105
477
259
46
2,373
Adjustments
Accrual to Cash Transfers & Other
Reclass
$
128
$
18
$
146
$
197
$
$
7
$
128
18
146
$
$
-
$
-
$
12
(3)
4
(2)
56
(197)
10
7
(136) $
73
83
$
1,437
56
0
128
838
2,459
(79)
$
64
136
$
Additions to Plant/Endowment Principal
Transfer of Equity from Hospital to Med School
Revenues less Expenses after Transfers
$
460
924
244
104
477
271
43
2,523
(4)
(1)
1,429
740
2,366
Consolidated
Budget
(43)
14
$
7
$
-
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
$
136
$
(108)
(43)
14
$
35
P. 7
Bridging the GAAP
Financial data has to be manipulated (“moved”),
aggregated, or disaggregated for different purposes





Student Financial Aid—moves “geographically” from expenditure to
reduction from revenue (but only for tuition grants, not other types of
Aid)
Capital Asset Acquisition is a use of funds, but the Depreciation Charge
is what hits the external Income Statement
Fringe Benefit Burden expenditure vs. external Benefits pool payments
Internal Revenue/Expense and interfund transfers vs. the transfer that
show in GAAP reporting
Debt Service
— Internal allocation of principal amortization as expenditure
— Retirement of debt principal as Balance Sheet transaction

GAAP Fund Types vs. Fund Accounting Fund Types
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
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What’s so funny about Peace, Love, &
Fund Accounting? *
FASB Reporting (GAAP)
UR
PR
TR
UR
End
Princ
Gifts &
End Inc
G&C
Fund Accounting
* With apologies to Elvis Costello and the Attractions
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The Frustration
We have a disaggregated, discontinuous,
disorganized overall process.

Different units maintain their own models separately

No common thread; no continuous feedback or updating

Manual reconciliations between different views

How many times do we reinvent the wheel?
— What were we thinking? (What were we thinking!)


With our hands full with Income Statement modeling, who has
time for Balance Sheet modeling?
The ERP systems we have do not facilitate this (no matter what
the sales team says)
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
P. 10
The Disconnect
Unrestricted
Funds
Modeling
Tuition/Fees &
Enrollment
Forecasting
Endowment
Principal
Growth
Modeling
Detailed Budgets
entered by Units
Sponsored Activity
Forecasting
Financial “Actuals”
Consolidations
Capital Planning/Budgeting
Debt Service Planning
School submodels
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What’s so funny about Peace, Love, &
Fund Accounting? *
FASB Reporting (GAAP)
PR
TR
UR
How do you plan, model, and report on both views
consistently, coherently, and meaningfully? And do it
without building your own system?
UR
End
Princ
Gifts &
End Inc
G&C
Fund Accounting
* With apologies to Elvis Costello and the Attractions
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What is the vision?
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
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3 Broad Components

Actual Revenues, Transfers, Expenditures, Assets, & Liabilities
— Coming from the General Ledger (legacy, Oracle, SAP, Banner,
etc.)
Consolidation: Hyperion Financial Management

Detailed Budget
— Coming from Hyperion Planning, Hyperion Pillar, Excel, etc.
— Most often only for Income Statement items (Revenue & Expense)
Budgeting: Hyperion Planning

Long-Range Forecasting
—
—
—
—
Multiple year, “what-if scenarios”, aggregated data
Done most often in Excel
Usually not integrated into other systems
If multiple units are doing modeling, other units tend to be in the
dark
Modeling: Hyperion Strategic Finance
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
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Using Hyperion Tools to Integrate
Hyperion
Planning
Detailed
Budgeting
Financial
Reporting
Different Levels
of Data Detail as
Relevant to the
Different Needs
Strategic
Modeling
Distributed and
Customizable
Modeling; Realtime Access
Hyperion
Strategic
Finance
Hyperion
Financial
Management
Automated
Data
Integration
Between the Systems
A Comprehensive Planning and Reporting Model for Higher Education: Hyperion Strategic Finance
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A Continuous, Integrated Process
As You Move Through
the Fiscal Year, Your
Comprehensive Model
Gets Updated
FALL
External
Financial
Statements
WINTER
Consolidated
Budget
SUMMER
SPRING
Each Office’s
Model Gets
Data From and
Pushes Data To
the Other
Models
The
“Crosswalk”
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HSF in Higher Education

Scenario Comparison
— Early Forecast, Late Forecast, Budget, Projection, Actuals

“What-If” Modeling
— Side-by-side comparisons
— Sensitivity analysis

Models within models
— Endowment Principal growth modelFeeds Endowment Income
Projection
— Capital Asset growth modelFeeds Debt Service/Depreciation
— Net Changes in AssetsFeed back to Balance Sheet
— Using the same “framework”, each school/unit can set up their own
models, drivers, elements
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Hyperion Strategic Finance
Create financial models for each school or division in Hyperion
Strategic Finance and consolidate them to a total for the university.
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Hyperion Strategic Finance
Modules can be created within each
financial model to forecast financial
statement items in detail.
The user can choose from a menu of
standard forecasting methods or create
customized drivers.
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Hyperion Strategic Finance
Reports can be created at varying levels of detail in each model.
Reports can pull Actuals, Budgets, and Different Forecast data
together for side-by-side comparison.
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Hyperion Strategic Finance
Each double-click
unveils an
additional layer of
detail.
Report across multiple schools or divisions and analyze individual drivers for each.
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Hyperion Strategic Finance
Balance Sheet items, such as Endowments, can be forecast as well.
HSF will automatically generate a Cash Flow Statement based on the
Income Statement and Balance Sheet forecasts.
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Hyperion Strategic Finance
Model components flow back and forth between the Balance Sheet and Income Statement.
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Hyperion Strategic Finance
The Scenario Manager provides the flexibility to store multiple sets of assumptions for analysis.
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Hyperion Strategic Finance
Report the results or the financial impact of each scenario, or any combination of scenarios.
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What’s In It For Us?

Higher Education strategic planning needs and demands are
becoming more complex
— But the tools we relied on previously don’t always adapt well


FASB and GASB reporting requirements are very different from
the way institutions really are managed
“Buy vs. Build” has often times turned into “Buy and Build”
— ERP system implementations like Oracle and SAP have to be
customized up the wazoo, making day-to-day maintenance and
upgrades a royal pain
— This model involves “configuration” only for higher education,
rather than code rewriting or front-end plug-ins

Hyperion’s focus is on Business Intelligence analysis, modeling,
and reporting
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Questions, Discussion, Jokes
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