Budget 3.0 - Highlights
System Enhancements• Speed• Large Data Sets• Customizable to Meet Client Needs• Base Budget Generation• Increase Historical & Forecast Years• Multiple Scenarios• NIM Generation & Interface via ALM• Additional Reporting Hierarchies• File Export/Import Flexibility• Reporting – Native & Excel
Budgeting Components (2020)
Budgeting Database
NIM(ALM)
Non-InterestIncome/Expense
Payroll(by Employee)
CapExFixed Asset
System Design
• Online Only (No Desktop Version)• Simple Uniform User Interface• Simple Data Architecture• Flexible & Customizable to Meet Client Needs• NIM Planning via ALM or Budgeting• Linked ALM Portfolios to G/L Chart of
Accounts
Data Architecture
Use Mnemonics to Reference Fields Instead of Dates• CYA – Current Year Actual• LYA – Last Year Actual• CYB – Current Year Budget• NYB – Next Year Budget• CYF – Current Year Forecast • Optional Additional Historical Periods (Maximum of
5 Years)• Optional Additional Budgeting Periods (Maximum
of 5 Years)
Base Budget Generation
Base Budget“BB”
Adjustments“ADJ”
CalcEngine
RateDrivers
Formulas Planning AccountGrouping
HistoricalData
Formulas - Sample• Annualize CYA
• Annualize CYA to Date, Increase by Rate Driver and Spread Evenly Over Remaining CYF
• Compound• Calculate Next CYF by Increase of Latest CYA Period with Rate
Driver• Subsequent CYF Increase by Previous Period with Rate Driver
• Historical• Increase CYA+LYA by Rate Driver and Spread Evenly over CYF
• Seasonal• Calculate Remaining CYF with Corresponding LYA and Rate
Driver• Target Chg%
• Decompounded Growth to Reach a Target Percentage
Rate Drivers
Columns Across – Corp + 25 RegionsRows Down – Unlimited, User DefinedBase Rate Scenario + 3 Others
Rate Drivers• G/L Accounts & Planning Centers Grouped
for Rate Driver Assignments• Region Assignment by Combination of G/L &
Cost Center• Set of Rates for Current Year Forecast• Set of Rates for Next Year Budget
Net Interest MarginOption #1 - NIM Computed Entirely Within ALM
• ZM Desk or Online ALM Clients• Current Position & Assumptions Established in ALM• New Growth Layered In (via Import) by GL/Cost Center
Option #2 – Budgeting Software Forecast• ZM Desk or Online ALM Clients• Current Position & Assumptions Pulled From ALM • New Growth Modeled Within Budgeting Software
Recommendation – Combination Approach• Option #1 – Current Position & New Growth• Option #2 – Last Minute Growth Adjustments
Payroll Module• Obtain Information From Personnel File - Payroll
Processor• Import Template to Upload Personnel Information• Forecast of:
• Salaries & Benefits• Taxes• Insurance
• Personnel Categories:• Full Time• Part Time• Temporary
CapEx Module
• Project Planning for Capital Expenditures• Forecast Funding Requirements• Forecast Additional Expense Related to
CapEx Expenditures
Fixed Asset File
• Provided by Client via Fixed Asset System• Forecast Consists of Straight Line Depreciation• Import Directly Into Budgeting
Budgeting Components
Budgeting Database
NIM(ALM)
Non-InterestIncome/Expense
Payroll(by Employee)
CapExFixed Asset
Reporting
Questions?
Michael LauProduct Manager, OnlineBudgetingZM Financial Systems919.241.5304 Direct919.493.0029 [email protected]
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