Financial Model
‘An integrated model for STFC’
Draft Blueprint Design v0.1
Project Manager: Mark Affonso
Project Champion: Jane Tirard
Financial Model
Past
What we had
•
•
•
Poor visibility of
-cost drivers
-contribution from
external funding
-commitments vs.
discretionary spend
No functionality to
support scenario
planning and “what-if”
analysis
Planning assumptions
not recorded on the
system and no KPIs or
targets on system
Workshop to
clarify cost
model
Workshops to
identify and
elaborate key
planning
scenarios
Workshops on
high-level
requirement
and project
plan
Tender process
with SSC to
engage
consultants to
deliver model
on Hyperion
sofware
Workshop on
plan/budget/
forecast
processes
TODAY
•
Hybrid solution
consolidating data
from CCLRC and
PPARC legacy
systems
Present
What we have
Future
‘To be’
•
Integrated,
system-based financial
model
to support dynamic
planning and
management
•
Budget holders and
finance teams
empowered to
participate actively and
effectively in the
planning process
•
Visibility of cost and
income drivers for all
STFC activities
•
Consistent
assessment of the
financial impact of
decisions – scenario
planning
•
Budgets aligned to
strategy and delivery
plan; prioritised
spending and
investment plans
Workshop to
define reports
and
deliverables
Engage
consultants,
agree firm
requirement
and project
plan
Design, build,
test, train, rollout Hyperion
model.
What is it for?
What-if analysis: scenario planning, different versions of plans and budgets
Reporting: historical data, trends, current year actuals, plan, budget and forecast, narrative
Who is it for?
The Financial Model will show how different cost and income elements and organisational units
relate to each other and fit into an integrated STFC planning and budgetary framework.
It will be a medium for financial communication across the entire organisation
Operations
and Exec
Boards
Director of
Planning
and
Corporate
Planning
Team
Directorate
and
Department
Managers
Financial
Model
Director of
Finance and
Corporate
Finance
Team
Project
Managers
and Budget
Holders
Directorate
and
Department
Finance
Teams
.
Key benefits
Financial Model Design
Workshops were held in January and February to identify “what-if” scenarios we want
the financial model to answer.
Some examples of the scenarios are :
- Open or close a facility or site.
- Start or stop or increase or reduce a programme or project. Major time line changes.
- Changes in external income (All non-DIUS income. Need to consider volume and profitability).
- Increase / reduction in x% of DIUS funding (need to consider commitment and flexibility).
- Increase / reduction in operation days of different facilities (including Observatories).
- Changes in staff headcount.
- Changes in overheads.
During February and March we did initial analysis of the scenarios, clarified the scope of the project and
finalised the Project Initiation Document and Project Plan.
Further workshops from April to June are defining the cost and income model, planning dimensions, and
describing the planning cycle and key processes.
As the methodology is developed we will apply it to realistic “what if" scenarios to test feasibility,
robustness and identify gaps.
Representatives from all STFC directorates have participated in the design workshops.
Implementation Plan
By the end of June we will complete a Blueprint “To Be” design document describing the Financial Model.
The document will identify the data, processes, functionality and reports required for the Model.
Consultants will be engaged by SSC to work with STFC to build and implement the Model using Hyperion
Planning software. This work will commence early in July and is scheduled to conclude in December 2009
with the delivery of a system for carrying out the 2010 to 2020 planning exercise, preparing annual budgets for
2010/11 onwards and maintaining in-year forecasts.
The implementation will involve a number of phases:
-elaborate the system definition and design within a Hyperion context;
-build/prototype;
-test;
-train users;
-roll out;
-establish on-going support.
Implementation Plan
-A team of 5 to 7 people, drawn from the group currently involved in the design phase, will provide oversight
of the implementation phase for STFC. This group will include Director of Finance, Jane Tirard, and Director
of Planning, Graham Brooks. It will interact closely with the SSC Hyperion governance structure.
Mark Affonso will lead the group as Implementation Manager and STFC Business Analyst.
- We will identify 2-3 staff with aptitude to become STFC Super Users of Hyperion . They will receive formal
training in Hyperion and work very closely alongside the consultants to build, test and rollout the model and
train other users.
-Subject Matter Experts with knowledge of specific business areas across the full range of STFC’s activities
will be consulted on the system definition and design and at other key stages.
- We will identify approximately 70 prospective STFC Hyperion “licenced” users, including staff responsible
for preparation and management of plans, budgets and forecasts. Appropriate training will be provided for all
of these staff and a selection of them will also be involved in user acceptance testing.
- A communication plan will introduce the model to a wider audience who will provide data via the Oracle
Project modules and via the licenced users and receive reports communicating financial performance and
informing decision making.