Challenges of Public Sector in Planning and Budgeting

Public sector organizations are faced with a range of challenges regarding planning and budgeting. Government CIOs have specific budgets and business plans to monitor their overall performance. The practices that regulate planning and budgeting, in addition to various other functions such as reporting and risk management, are constantly evolving and becoming more complex. Tax-funded institutions are obligated to co-design transparent financial plans in order to ensure public accountability. Public sector professionals, therefore, are responsible for generating consistently improving results and integrating better controls to provide clearer insights into costs and performance and optimally serve citizens.

Some challenges commonly faced by public sector firms include:

  • Market changes
  • Data inaccuracy
  • Outdated budgeting methods
  • Manual process evaluation
  • Visibility as high-level financial targets

What is Enterprise Performance Management Solution (EPM)?

Enterprise performance management refers to one of the central management tasks of a business. While key performance indicators (KPIs) and return on investment (ROI) are often used as goals, EPM evaluates and manages an organization’s ability to achieve these goals, improve efficiency, and maximize business processes. The purpose of EPM is to drive performance by comparing results to forecasts and goals. It is a process supported through planning, reporting, and business intelligence software.

EPM consists of the following management processes:

  • Forecasting
  • Strategic Modeling
  • Consolidation of Results
  • Reporting
  • Performance Analysis

How EPM Can Help in Public Sector Planning and Budgeting

Using EPM technology can help public sector organizations improve planning and budgeting in the following five ways.

1. Forecasting

EPM software provides flexibility and scalability with forecasting. Traditional budgeting tools and methods do not effectively link financial investments to outcomes via ample available data and efficient analysis. Public sector businesses often have consistent budgets across multiple years that are not adjusted to reflect market change. Budgetary limitation and resource accessibility often changes, and organizations need to be able to depend on efficient processes to create budgets that will work into the future. Many EPM programs even allow users to create customer parameters for future budgeting and planning.

2. Strategic Modeling

Modeling and value creation allows users to develop long-ranging strategic forecast models. This is useful when it comes to creating detailed forecasts and trends analysis. It also frees up time that might otherwise be spend collecting data in less efficient ways, accelerates cycle times, makes time for strategic work, and delivers highly precise figures. Cloud services are deployed to improve functionality in a flexible and scalable manner. EPM offers a modeling process that acknowledges differentiators that provide competitive advantages, such as a reduction of IT dependence and improved management reporting capabilities. It encourages social collaboration so that the right people are involved in decision-making and have access to advanced analytics.

3. Consolidation of Results

Government leaders are particularly motivated to save time, meet deadlines, maintain all necessary compliance, and produce reliable, accurate data. EPM technology streamlines financial consolidation, which makes it easier for public sector businesses to confidentially report results. An Oracle survey of 900 finance technology consumers found that 71% gained more visibility across the close process and 79% reported a less complicated close. Automation of reporting eliminates errors and labor-intensive work. This affords peace of mind when it comes to complying with global regulatory requirements and provides data transparency for internal and external stakeholders.

4. Reporting

CFOs are required to produce better results by improving accuracy, integrating better controls and increasing auditability. Financial reporting is consistent and standardized through EPM software. It can be used to consolidate briefs into executive reports, disseminate content to stakeholders, and integrate financial decisions. EPM makes it easier for public sector businesses to report the most accurate information possible.

5. Performance Analysis

Analyzing performance through EPM is convenient and streamlined. It facilitates analysis of trends across multiple years and divisions and against projected performance. This generates invaluable data for public sector leadership. EPM also makes it possible for public sector companies to allocate resources according to proven value and prepare for future change and growth with scalable reporting solutions.

How CherryRoad Can Help

CherryRoad offers strategy consulting, implementation services and application support for Oracle Fusion to help businesses across industries model and plan finance, HR, sales, and supply chain. Oracle Planning, previously called Planning and Budgeting Cloud (PBCS), supports enterprise-wide planning, forecasting, and budgeting all within the cloud. We offer a comprehensive and streamlined process to help clients achieve their goals and generate valuable data. We have successfully implemented and integrated a range of EPM solutions with our clients’ accounting, HR, and operational systems.

We work with EPM clients to do the following:

  • Develop a planning process with cross-module components
  • Automate customizable reports and analysis
  • Provide application support services
  • Develop planning and budget analysis to account for multiple scenarios
  • Implement staff planning capabilities and cross module transactions
  • Analyze data across reporting segments
  • Report visualization via charts and dashboards
  • Publish content, including comprehensive annual financial reports and Budget Book
  • Create digital documents for inclusion in CAFR and Budget Book
  • Structure budgeting modules
  • Develop cash forecasting for receipts and expenditures

CherryRoad also provides Infor Public Sector Community Development and Regulatory (CDR) processes for local governments in need of community development and regulatory processes. This enables improved collaboration and allows clients to maximize fee collection, avoid compliance issues, and increase overall satisfaction. Infor Public Sector CDR helps with managing the following:

  • Land permitting and management
  • Mobile field automation
  • Licensing
  • Web-based services
  • Regulatory and code enforcement
  • Mapping security
  • Billing

Contact Us

To learn more about our EPM and PBCS Cloud services, please email us at info@cherryroad.com