Modern public sector budgeting with Sherpa

PS700SP - Vision

September 25, 2019

Speakers

2

Christian Fuellgraf

Director, State and Local

christian.fuellgraf@us.gt.com

David Farrell

CEO, Sherpa Government

Solutions

david.farrell@sherpagov.com

About Grant Thornton Public Sector

3

Office locations

Reach

59 offices spread across 30

states and Washington D.C.

135 customers at 36 Federal

agencies and 72 state and local

customers in 19 states

PeopleMore than 1000 public

sector professionals

At Grant Thornton Public Sector, we are

passionate about helping executives

and managers at all levels of

government maximize their performance

and efficiency in the face of ever

tightening budgets and increased

demand for services.

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2

3

Budget system evolution and where they fit in

4

Budgeting today

Topics

1

View of the budget office and typical challenges being addressed

Sherpa overview

Historical View of the Budget Office

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• Nice shoes

• I found it!

• Where's the fire?

A change has already taken place, but no one noticed …

Transparency, accountability, and visibility are expected and assumed

Expectations are the same for government as they are for your bank – real time information and accuracy matter

The CFO has emerged more publically as the business leader of government – the "M" now counts

What has

evolved

Functional requirements have remained consistent

Work-flow processes have not significantly changed over time

Expected budget outcomes are about the same

What has

remained

the same

Public Sector Budgeting & Financial Management Changes

6Now, it’s all about the analytics

Existing Resources and Tools Make it Difficult to Deliver to Expectations

7

• Dependence on spreadsheets for formulation and not just as a tool

• Limitations on text capabilities

• Limited Integration of budget types – operating, capital, personnel, grants, long-term planning

• Legacy systems have limited functionality and difficult processes

• Inability to accurately project what-if scenarios

• Limited ability for on-the-fly reporting – the hallway discussions

• Alignment of strategy to outcomes and performance measures

• Limited or no ability to view or budget by program

• Ease of budget adjustments in a single system – a single version of the truth.

• Limited ability for strategic analysis

Fast access to accurate and detailed financial information is required

The Market has Evolved and That is Good News for Government

SpreadsheetsCommerical

Planning Tools

Dedicated Public Sector

Budget Products

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• Many companies are investing in new products and enhancing existing offerings to address the requirements of all sizes, types and levels of government

• Significant out of the box functionality addressing many common requirements –with ability to configure to the “how” of individual clients

• Recognizing the importance of public budgeting experience and expertise in the software development and system deployment

Where Budget Systems fit within ERP and When to do it

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Pre-1997 Classic Best-of-Breed

1998 to 2014Modern ERP

2015 to PresentPostmodern ERP

No Core ERPFunction-Oriented

Core ERPData-Oriented

Core ERPProcess-Oriented

ERP SuiteCollections/AR

(Custom)

Order Mgmt.Manufacturing

(Mainframe)

GL, AP, FA(Package)

Payroll(Outsourced)HR

(Package)

Timekeeping

E-Recruit

Budget

E-Procure

TalentManagement

AR AP GL

FA Inventory Payroll

Order Management

Manufacturing

Payroll

E-Travel

Core

ERP

A Single Version of the Truth

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Impacts

Supplemental Budgets

Demographic

changes

Base Budget

& Estimates

Salary

& Benefits

Loss of Grants

Performance and Service Demands

Analysis & Reporting

Legislative Priorities

Economic Downturn

Collective Bargaining

Incremental Budgeting

Zero-Based Budgeting

Initiative and Activity Budgeting

Program Budgeting

Performance-Based Budgeting

Budget Approaches

Agency/Department Budgeting (Requests)

Central Executive Budgeting (Reviews/Recommendations)

Legislative Budgeting (Adoption)

Budget Execution: Spending Plans Allotment/Allocation, Budget/Position Control

Budget Processes

Operating Expenditure Budgets

Personnel Expenditure Forecasts

Capital Budgets

Revenue Budgets

Grant Budgets

Long-Term Planning (6 years+)

Budget Types

Financial Plan/Spending Plans

Adopted Budgets (Budget Control)

Reports

Budget Documents

Budget Outputs

Budgeting Today

• The Evolving Goal in 2020 and beyond is a Single Version of the Truth

Enabling Strategic Analysis.

• Must be able to link budget and financial resources to service

demands, results and performance

• Seamless integration of all budgeting: Operating, Personnel, Grants,

Transportation, Capital

• Hardening your government for the future – preparing for shocks

• Budget teams build great budgets, not great budget systems

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12

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Personnel Cost Forecasting

• Integration with Infor HR and Payroll Data

• Projections for any number of years with pay period detail

• Scenarios for in-year analysis / bargaining unit negotiations

Employee Detail from Infor What-if Scenarios

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Flexible Budget Forms

• Base, decision package, capital, assets, transfers, other types of data

• Can configure online / in workshops to see changes in action

• Budget for Positions by Classification / benefits automatically assigned

Position Detail

Budget Detail – Base Form Type ExampleCapture Narrative and Scenarios

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Dashboard Views

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Dashboard Views

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Budget to Actuals Monitoring and Forecasting

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Strategic Planning and Peformance Mgmt.

Transforming your organization: Optimizing performance to finance

technology (Executive Forum)

Robert Schwartz, Grant Thornton | 2:15 – 2:35 pm | New Orleans Ballroom

Tuesday, September 24

Hear more from Grant Thornton

Thursday, September 26

The healthcare workforce of the future

Danielle Miller, Grant Thornton | 2:30 – 3:15 pm | Room 263

Meeting today’s healthcare financial challenges through improved asset

management

Bob Hersh, Bill Slama and Ken Deakyne, Grant Thornton | 3:30 – 4:15 pm | Room 266

The evolution of smart governance

Paul Folkers, Grant Thornton and Governor Martin O’Malley, Maryland | 3:30 – 4:15 pm

| Room 274

The best is yet to come: Long-term benefits of cloud adoption

Chris Lilley, Grant Thornton | 1:00 – 1:20 pm | Hub—Theater 3

Modern public sector budgeting with Sherpa

Christian Fuellgraf, Grant Thornton and Dave Farrel, Sherpa | 1:00 – 1:45 pm

| Room 355

Hospital 4.0 – Capitalizing on the next evolution of healthcare

Dave Reitzel and Bill Slama, Grant Thornton | 2:00 – 2:45 pm | Room 263

How to transform assets into a strategic advantage

Bob Hersh and Nick Morteo, Grant Thornton | 10:00 – 10:45 am |

Room 355

Wednesday, September 25