Westminster budget holder training October 2015 v2
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Transcript of Westminster budget holder training October 2015 v2
Budget manager training
City Treasurer’s Department
October 2015
Budget Holder Training October 2015
Firstly…
Budget Holder Training October 2015
This session will cover…
Part 1 – 45 minutes – Theory Based•Budget holder roles and responsibilities•Forecasting techniques
Part 2 – 1 hour 15 minutes - Practical•Downloading Agresso budget manager pack•Amending Agresso budget manager pack•Uploading Agresso budget manager pack•Entering accruals and journals
Part 3 – 30 minutes – Combining theory and practice•Making accurate forecasts•Hands on practice supported by Finance Managers
Budget Holder Training October 2015
By the end of this session I will…
• Understand my roles and responsibilities in the budget monitoring process
• Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
• Be able to download my budget holder pack from Agresso
• Be able to enter and upload a forecast in my budget manager pack
• Be able to enter accruals and journals using Agresso
• Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres
Budget Holder Training October 2015From this…
To this…
Budget Holder Training October 2015
Budget monitoring – why?
Budget Holder Training October 2015
Budget monitoring
Budget Holder Training October 2015
Maintain financial control over budgets
Timely and accurate forecasts using Agresso budget monitoring pack
Costs and income are recorded accurately
Base data is amended where necessary – using journals
Report reasons for significant variances - using the comments function
Ensure managers are aware of variances – enables mitigating action
Service Units – Budget ManagersBudget monitoring and forecasting
Budget Holder Training October 2015
By the end of this session I will…
Understand my roles and responsibilities in the budget monitoring process
• Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
• Be able to download my budget holder pack from Agresso
• Be able to enter and upload a forecast in my budget manager pack
• Be able to enter accruals and journals using Agresso
• Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres
Budget Holder Training October 2015
How do I forecast accurately?
Budget Holder Training October 2015
Anticipated future events - examples
Budget Holder Training October 2015
Forecasting Techniques
Straight Line method: The forecast is equal to the actual value observed during the last period
Can you think of
an example?
Tip – don’t just assume that all costs have come through for all the last period.
Budget Holder Training October 2015
Forecasting Techniques
Mean Average: The average over a period of available data Can you
think of an example?
Budget Holder Training October 2015
Forecasting TechniquesDemand led costs:A relationship between 2 separate sources of data exists Can you
think of an example?Demand Led Forecast
Budget Holder Training October 2015
What are accruals?• Accruals are adjustments which are made to account for
the fact that there are timing differences between:
- Expenses that have already been incurred but are not yet recorded in the ledger – e.g. emergency placement costs where not possible to raise PO
- Income which has been earned but not yet recorded in the ledger – e.g. government grant paid in arrears
• The principle behind accruals is that income and costs should be recognised in the period in which they are earned or incurred
• Using accruals – gives an up to date position of Westminster’s finances
Budget Holder Training October 2015
Types of accrual
(+) Debit
(-) Credit
Expenditure Accrual
(un-receipted invoice)
Income Accrual
(un-billed income)
Automated / System Driven
POs which have
been GRN’d
Sales invoices raised on Agresso
Receipt In Advance(pre-paid income)
Payment In Advance(pre-paid
expenditure)
Budget Holder Training October 2015 When should I accrue?
MATERIALITY
Definition: Would a user of the accounts gain the wrong impression if it is not included?
Amount = greater than £10,000 - CHECK
Nature: Judgements about materiality are made in light of surrounding circumstances (Regulatory framework, statutory targets, political sensitivity).
Receipted or raised on Agresso?
Budget Holder Training October 2015
Should I accrue?Situation
You have had to implement 5 emergency care packages for individuals in adult social care, costing £20,000 for the month, but have not yet raised a purchase orderA staff member has attended a training course this month, costing £250
You have received £100,000 in advance payments for leisure subscriptions
I have raised a £30,000 invoice for parks maintenance, but they have not yet delivered the service
Should I accrue?
Yes – the individuals have received the service, the cost is material, but this is not reflected in the accounts
No – although the service has been provided it is not material so would not need to be accruedYes – these payments are for services in future months which we haven’t yet deliveredNo – you should only accrue for goods and services which we have already received or provided
Budget Holder Training October 2015
By the end of this session I will…
Understand my roles and responsibilities in the budget monitoring process
Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
• Be able to download my budget holder pack from Agresso
• Be able to enter and upload a forecast in my budget manager pack
• Be able to enter accruals and journals using Agresso
• Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres
Budget Holder Training October 2015
Part 2 •Downloading Agresso budget manager pack•Amending Agresso budget manager pack•Uploading Agresso budget manager pack•Entering accruals and journals
Budget Holder Training October 2015The monthly timetableWorking Day
Task Responsible Output
WD -5 to 0 Budget Managers update Forecasts on ABW
Budget Managers Forecasts updated and uploaded to Agresso
WD 1 Budget Managers Pack released and Email sent to all Budget Managers
BT SSC Budget monitoring packs fully populated with actual to date, budgets, previous month forecasts and variances.
WD 1 to WD 3
Update Forecasts (if not already done so in WD -5 to 0) and initiate accruals (Accruals must be posted to the system by end of day 2)
Budget Managers Accrual Journals, forecast updated and uploaded to Agresso
WD 3 Approve Accruals Finance Managers
WD 4 Summary Packs uploaded (AM) Corporate Finance Updated actual year end and forecast position from Agresso
WD 4 Commentary on packs (PM) Finance Managers Commentary updated for the current period, risk and opportunities and other information on summary packs
WD 5 Challenge Meetings Finance Managers
WD 6 Finance Review / Changes to forecasts on ABW
Finance Managers Change to Budget Manager forecasts uploaded to Agresso.
WD 7 (AM) Summary Packs updated with final financial position on ABW
Corporate Finance
WD 7 (PM) Finalise Commentary Finance Manager Packs populated with updated commentary (after close engagement with the business)
WD 8 to WD 9
Finalise Report for City Treasurer and EMT
Corporate Finance Report overall financial position for the Councils
Budget Holder Training October 2015
Once logged in to Agresso1. Select Information pages2. Open Report ordering3. Click on Revenue Budget Monitoring
Pack4. In the report screen change the
period to the one you require5. Click on Save6. Go to Your ordered reports7. Check the status of your report. It
should say Running8. Click on Refresh9. Check your report status again.
Keep checking periodically until it changes to Finished
10. Click the row of your report and save it to your desktop
• http://lms.rbkc.gov.uk/course/view.php?id=2894
Downloading the budget holder pack…
Budget Holder Training October 2015
Downloading the budget holder pack
• Live demonstration - space for notes on page 5
• Top tips and full instructions – can be found on the handout – page 4 and 5
Budget Holder Training October 2015
By the end of this session I will…
Understand my roles and responsibilities in the budget monitoring process
Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
Be able to download my budget holder pack from Agresso
• Be able to enter and upload a forecast in my budget manager pack
• Be able to enter accruals and journals using Agresso
• Be able to enter and upload an accurate forecast from my budget manager for my specific cost centres
Budget Holder Training October 2015
Using the budget monitoring pack
• Using the packs can be broken down into 3 areas:
1. Drilling down into the data
2. Amending the forecast
3. Posting the forecast
1) Drilling down into the data
• Breaks down spend or income at a transaction level
• Can see what has / hasn’t gone through the ledger to inform forecast
• Don’t have to go into Agresso to get additional detail
Budget Holder Training October 2015
How to: Drill down into the data
1. Select the cell to drill down on2. Click on the PO Drilldown button3. Log in using your normal Agresso
User name and password4. Select the line of the order you want
to drill down further on5. Click Order Line Detail Drilldown6. You will be presented with your drill
down detail to view7. Click Back to PO Drilldown Sheet8. Click Back to Main Sheet
1
3
2
5
4
7
8
Note:If you are want to drill down into the actuals or budget then click on the appropriate button in Step 2
Budget Holder Training October 2015
Using the budget monitoring pack
• Using the packs can be broken down into 3 areas:
1. Drilling down into the data
2. Amending the forecast
3. Posting the data
2) Amending the forecast• As well as drilling down into data in more detail can also
amend forecasts for your cost centres
• You can amend forecasts for non-payroll and payroll
Tip:Any changes you make to the payroll monitoring spreadsheet will automatically link through to the main forecast sheet
Budget Holder Training October 2015
Non-payroll
1. Check you are on the correct cost centre
2. Locate the account to be amended
3. Check the Forecast to Last Month
4. Check the total of the Actuals column in the YTD section
5. Check the Purchase Orders total in the Full Year section
6. Select the cell in the Amended Forecast this Month (Budget Manager Section) column for the appropriate account code and enter the new forecast
7. Add a reason for the amendment in Comments
8. Click on Save as appropriate
BUDGET MONITORING REPORT
Financial Year: 2015/2016Period: 06
R1000 SalariesR1002 Reward SchemeR1003 OvertimeR1004 Capitalisation of salary (cr)R1060 HonorariaR1099 Employee Costs Budget OffsetR1100 Agency StaffR1200 Employer's National Insurance ContributionR1300 Employers Pension ContributionR1400 Employee AllowancesR1403 Employee BenefitsR1601 DBS Police ChecksR1650 TrainingR1700 Recruitment costsR1800 Redundancy and Severance PayEmployeesR2800 Insurance - PremisesPremises-Related Expenditure
Cost Centre- WC26741 - Trading Standards
Account Account Desc
1
2
Revised Budget Full Year
Purchase Orders
External Commitments
Forecast to Last Month
Projected Variance
475,750 0 0 362,152 -113,598- 0 0 0 0
1,600 0 0 1,600 0(5,000) 0 0 -5,000 0
- 0 0 0 056,652 0 0 0 -56,65242,200 0 0 42,200 -041,309 0 0 66,000 24,691
THIS YEAR (FULL YEAR) 3
Revised Budget To Date
Actual to Date (Incl GRNs)
Adjusted Actual Position
Variance To Date
237,875 173,073 173,073 -64,8020 2,586 2,586 2,586
800 425 425 -375-2,500 0 0 2,500
0 0 0 028,326 0 0 -28,32621,100 -5,873 -5,873 -26,97319,526 15,628 15,628 -3,898
THIS YEAR (TO DATE)4
5
Amended Forecast this Month
Revised Projected Variance
Comments - held at transaction level
346,145 -129,6053,624 3,624
425 -1,1750 5,0000 00 -56,6520 -42,200 Recuitment freeze
31,070 -10,239
6 7
8
Budget Holder Training October 2015
Amending payroll
1. Find the account to be amended2. Locate the account to be
amended3. Select the relevant payroll tab4. You can display employee
names using the drop down arrow
5. Find the position to be changed on the sheet and amend the figures in the cells for the affected month in the Manager’s Forecast Section. Any subsequent months’ figures will be changed too.
4
5
BUDGET MONITORING REPORT
Financial Year: 2015/2016Period: 06
331,111 189,920 -141,191
Account Account DescRevised Budget To Date
Actual to Date (Incl GRNs)
Adjusted Actual Position
Variance To Date
R1000 Salaries 237,875 173,073 173,073 -64,802 R1002 Reward Scheme 0 2,586 2,586 2,586
Cost Centre- WC26741 - Trading Standards
THIS YEAR (TO DATE)
Actual Drilldown
Budget To Period
1
Revised Budget Full Year
Purchase Orders
External Commitments
Forecast to Last Month
Projected Variance
475,750 0 0 362,152 -113,598
THIS YEAR (FULL YEAR) 2
3
Budget Holder Training October 2015
Amending payroll continued6. If you are adding data, do this in
the New Starters and Manual Adjustments section
7. Go back to the cost centre tab and in the Budget Manager Section check the total on the account code row has been updated
8. Enter an appropriate comment to describe the need for the adjustment
9. Click on Save as appropriate
6
6
7 8
9
Budget Holder Training October 2015
Using the budget monitoring pack
• Using the packs can be broken down into 3 areas:
1. Drilling down into the data
2. Amending the forecast
3. Posting the forecast
3) Posting the forecast
• Once your data is ready you can post your forecasts into Agresso
• They can only be posted twice so make sure you check all values in the forecast cells before saving!
• Make sure you save after posting
Budget Holder Training October 2015
Posting your forecast
1. Click Post Current Month BM Forecast
2. You may need to enter your log in details again if it has been a while since you last logged in to the spread sheet. Simply enter your details again and click Login
3. Click OK once the forecast has been posted
4. Save the file
Once your data is ready you can post your forecasts in to Agresso
1
2
3
Budget Holder Training October 2015
By the end of this session I will…
Understand my roles and responsibilities in the budget monitoring process
Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
Be able to download my budget holder pack from Agresso
Be able to enter and upload a forecast in my budget manager pack
• Be able to enter accruals and journals using Agresso
• Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres
Budget Holder Training October 2015
Entering my accruals• PROCESS TBC – JOGINDER TO ADD
Budget Holder Training October 2015
Journals• What are they?
• Journals are transactions which move recorded expenditure or income from one cost centre or account code to another
• It only moves the recording of income/expenditure from one part of the accounts to another, it doesn’t result in the actual movement of cash
Budget Holder Training October 2015
When should I use journals?
e.g.
•When there is a transaction which has been coded to the wrong cost centre – e.g. A order for a software licence has been coded to WC29653 but needs to be moved to WC29635
•When there is a transaction coded to the wrong account code – e.g. an advertising cost (R4300) has been coded to stationery (R308)
•When there are costs jointly incurred by multiple teams on one purchase order
When shouldn’t I use journals?
e.g.
•For payroll corrections – tell HR and these will automatically be corrected
•For items which have not yet been recorded in the ledger
•For small amounts – assess cost .v. benefit of journal – e.g. is it worth moving an incorrect £5 telephone charge?
Budget Holder Training October 2015
Entering a journal
Budget Holder Training October 2015
Budget Holder Training October 2015
Journals - tipsBoth sides of the journal must balance – for expenditure you wish to deduct from a cost centre/account code use a negative (minus) figure
All journals must have a cost centre and account code. There are also further information codes (categories 2-6) which you may be required to add – for example if you were doing a journal for capital expenditure you would need to include a project code (cat 2)Take time to think about the information you need to include in the description – make it useful, but think about confidentialityIf you are unsure of one of the codes to use, you can use the search function on Agresso
For complex journals with many lines, it might be easier to use the journal template form, although this does not contain as helpful data validation prompts so you need to be confident with which codes to use
Budget Holder Training October 2015
By the end of this session I will…
Understand my roles and responsibilities in the budget monitoring process
Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
Be able to download my budget holder pack from Agresso
Be able to enter and upload a forecast in my budget manager pack
Be able to enter accruals and journals using Agresso
• Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres
Budget Holder Training October 2015
Part 3•Entering the forecast into your budget monitoring pack•Practicing forecasting techniques and skills you will be likely to use
Budget Holder Training October 2015
Give it a go…Could you make these types of adjustments to your budget pack?
Payroll adjustments
1) New starter
2) A leaver
3) Staff member going part-time
4) Staff member receiving pay increase
Non-Payroll adjustments
1) A cost which is in your cost centre which shouldn’t be
2) A forecast for the year based on profiled spend over the first 6 months
3) The actual spend exceeds budget to date – calculate a revised projection
Budget Holder Training October 2015
By the end of this session I will…
Understand my roles and responsibilities in the budget monitoring process
Have a knowledge of the tools and skills that will help me to enter an accurate forecast – e.g. forecasting techniques
Be able to download my budget holder pack from Agresso
Be able to enter and upload a forecast in my budget manager pack
Be able to enter accruals and journals using Agresso
Be able to enter and upload an accurate forecast from my budget manager pack for my specific cost centres
Budget Holder Training October 2015
Where can I go to get more help?
Budget Manager e-learning: http://lms.rbkc.gov.uk/course/view.php?id=2112
ServiceNow: How do I? Guides for agresso:
https://btlg.service-now.com/LFSharedServices/hdi_pft_agresso.do
Your finance manager
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