Budgeting

Integrated cost model, not just data entry

Plan activities and spending so they are consistent with your goals. Built-in transparency lets you drill into financial plans to see spending detail.

CASE 1 Transforming to Performance-based Budgeting

Challenge:
Our client wanted to shift from traditional baseline budgeting practices to performance-based methods, enabling managers to focus on value produced and not just money spent.

Solution:

  • UIPlanner was configured to allow users to budget by units-of-work, which the system transformed into proper accounting while applying centrally managed rules for unit pricing, labor balancing, loadings and allocations.

  • When planned worked was already maintained in another system, integrations were established with these work-management databases, avoiding duplicate data entries.

  • The monthly import of actual results allowed the system to produce performance measuring analytics, including: price, labor and material efficiencies, and earned value reporting.  

Impact:
Our client’s budgeting process was transformed from a traditional baseline process to a robust cost model that provided bottom-up cost justifications for rate cases, explained cost variances and gauged operational performance.

CASE 2 Improving Transparency and Speed

Challenge:
Our client’s inability to accurately reflect the complex and multi-step service company allocation rules in their 10-year budget made them vulnerable to regulatory scrutiny. Their previous process lacked transparency and, even when systematized, took way too long to run. 

Solution:  

  • UIPlanner’s Allocation Integration Framework read in their exact allocation rules from their general ledger.

  • The In-Memory Rules Engine processed the 120 monthly budget periods in real time, exactly emulating the actual-period allocations processed by the GL.

  • The powerful Pivot Reporting tool provided drillable results, making the allocation process clear and transparent.

Impact:
With full transparency provided to target organizations, management was able to achieve their defendable and efficiently-produced 10-year fully allocated budget.

CASE 3 Achieving a Rolling Forecast

Challenge:
Our client’s leadership demanded a rolling-forecast to provide more accurate guidance to financial markets and enable operations to make more informed decisions. 

Solution:

  • UI’s solutions captured their business rules and offline spreadsheets in an online collaborative workspace, reducing the need for manual analyst interaction during the reforecasting process.

  • UIPlanner’s enterprise integration layer pulled in data from other systems eliminating data entry tasks.

  • The Rules Engine transformed imported work-planning assumptions into the required accounting format and automated the application of labor pricing, loadings and allocation rules.

Impact:
The utility was able to automate most of the monthly reforecast effort and shift low-value clerical time to high-value analytical time. In the process, they reduced the time and cost associated with developing the annual budget, improved the accuracy of the budget/forecast, and achieved the rolling-forecast objective.

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