Stanford University -- Using Hyperion for Budget Formulation & Analysis Presented by Dr. Andrew Harker Director of Budget Management Stanford University University Budget Office

Copyright © 2005, Hyperion. All rights reserved. P. 2 What was Stanford’s need?  Budget processes and framework was established via 6 years of using Hyperion Pillar, which we had outgrown  Conversion from legacy mainframe financial information systems to web-based systems gave impetus for moving to a web-based budgeting system  Strong desire to move towards a central repository of budget data for metadata integrity and “real-time” budget process monitoring  Long-term viability of budget formulation product  Greater reporting and analytical capabilities than in Pillar —Ability to match funding and expenses in each cost center easily —Ability to configure product to work both in Fund Accounting and GAAP formats  Be able to handle a large number of cost centers, natural accounts, and positions

Copyright © 2005, Hyperion. All rights reserved. P. 3 Stanford University Financial Management Overview  Funds controlled by budget units & by the central administration  >40k cost/revenue centers; >10k positions  ~250 people responsible for budget entry  Stanford Financial Information Systems —PeopleSoft (HR & Student Information) —Oracle Financials —Hyperion —Reportmart (reporting portal) —Pre-written reports via Portal & DW ad-hoc querying —Custom transactional web apps: iJournals, iBudgets

Copyright © 2005, Hyperion. All rights reserved. P. 4  Security (user access to data)  Metadata “overhead”: Size of the cubes  Performance (apparent speed to users, control over calculations)  Tech Infrastructure unique to Universities These design issues were of paramount concern: System Design Priorities

Copyright © 2005, Hyperion. All rights reserved. P. 5 System Architecture

Copyright © 2005, Hyperion. All rights reserved. P. 6 How are funds budgeted? “Pooled” budgets at department and fund type level, at detailed codes OB Auxiliary Service Center Designated Endowed Gifts Grants & Contracts Detailed Budgets, usually to specific cost center and natural account level, and position level Budgeted at combination of specific CC and “Pools” at department and fund type level, at detailed codes University UR

Copyright © 2005, Hyperion. All rights reserved. P. 7 Budget Entry Portal Screen: Table of Contents We have organized forms into “like” types of data for all of the cost centers for which someone is responsible

Copyright © 2005, Hyperion. All rights reserved. P. 8 Budget Entry: Non-Salary Using Supporting Detail, users can annotate a particular entry or build up a calculation such as cost per person times number of people Data can be exported to Excel

Copyright © 2005, Hyperion. All rights reserved. P. 9 Budget Entry: Salary Annual Rate Users can switch between data entry forms either by returning to the Table of Contents Or by selecting the form using these tabs

Copyright © 2005, Hyperion. All rights reserved. P. 10 Budget Entry: Salary Percent Distribution

Copyright © 2005, Hyperion. All rights reserved. P. 11 Budget Analysis & Reporting using Hyperion: “cross-tab” views

Copyright © 2005, Hyperion. All rights reserved. P. 12 Budget Analysis & Reporting using Hyperion: “time series” views

Copyright © 2005, Hyperion. All rights reserved. P. 13 Budget Analysis & Reporting using Hyperion: “slicing & dicing” Using the Point of View, users can change the data the report is looking at

Copyright © 2005, Hyperion. All rights reserved. P. 14 Moving Forward  Use Hyperion for more than just budgeting —Load aggregated “actuals” from Enterprise Data Warehouse —Replace our use of excel for Variance Analysis & Reporting —Enable units to develop Rolling Forecasts for on-going budget performance monitoring —Use the “out of the box” web-based tool that accesses the data stored in Hyperion for “dashboard” presentation and ad hoc analysis  Use it to focus on managerial reporting (as opposed to transactional)

Copyright © 2005, Hyperion. All rights reserved. P. 15 Business Intelligence Users can drill down through their organization’s hierarchy The graph will change interactively

Copyright © 2005, Hyperion. All rights reserved. P. 16 Business Intelligence

Copyright © 2005, Hyperion. All rights reserved. P. 17 What we have gained: the benefits  A web-based budget formulation and reporting system —Accessible from home/wherever  Better control over integrity of metadata  “Real-time” access to budget entry progress —Much greater ability to monitor the budget along the way  Better budget process management  Greater flexibility in report design  Better ability to report on Consolidated Budget —Including ability to incorporate “crosswalk” to GAAP Statement of Activities  No software overhead on user machines