Business Management SystemOutline of ScopeBMSBudget Development & ProductionBudget Formulation AdvicePortfolio Performance ReviewFinancial Reporting & ControlCash ManagementBMSKey ElementsBusiness Management SystemBenefits of the BMS systemOne system to support theIntegrated Management CycleIncorporating:Budget Development & ProductionBudget Formulation AdvicePortfolio Performance ReviewFinancial Reporting & ControlCash Management Analysis & ReportingAnalytical & Reporting Engine –to support informed, quality decisionsOutput data consistent and integrated with financialsActuals integrated with budgetGraphical analysis and trend data readily availableFlexible reporting to support analysisImproved Integrity –one version of the truthAutomated data validationDepartmental ownership of relevant dataImproved reconciliation within and between databasesEnhanced Efficiency –better use of resourcesReduced time spent on non-value adding tasksStatus tracking and semi-automated workflowsStreamlined reporting between departments and DTFBenefits•To co-ordinate the ERC process•To plan the position of government in terms of financial and performance objectives, output delivery, and asset investment•To produce the strategic priorities and projected financial statements for government and departments (the Budget Papers)Budget Development & ProductionSupports the production ofBDP•The Budget Papers•Annual Budget –•Whole-of-Government (WOG) financial statements and strategic policy directions (BP2)•Financial statements and output statements by department (BP3)•Regional Budget Paper(s)•Annual Appropriation Acts•Asset Investment Program (BP1) •Budget Update –•Updated Whole-of-Government (WOG) financial statements and strategic policy directionsBMS will automatically capture in pre-defined formats, the critical financial and performance information that enables the production of the Budget PapersPURPOSEBudget Development & ProductionThe initial building block is last year’s Budget and agreed policyLast year's Budget is rolled over to create a new baselineBaseline financials are reviewedFinancials and strategic policy directions are revised to reflect policy and non-policy variations…Departments prepare ERC (1 & 2) submissions based on revised departmental business plans and government strategic priorities.Submissions are analysed and DTF makes recommendations to ERCDTF recommendations are taken to ERC in the form of briefing papersERC submissions are submitted to DTF via a standard templateERC evaluates recommendationsThe impacts of ERC decisions are reflected in budget financial statements, performance measures, objectives, outputs, investments and POBOSERC makes decisionsThe impact of non policy variations such as parameter changes (including CPI and productivity) is incorporated in projectionsDTF produces the Budget PapersBDPScoresheets are prepared by DTF to assist in analysing the effects of proposed submissions & ERC decisions on the projectionsPROCESS•To provide advice to government pertaining to departmental submissions to ERC and Ministers.•To liaise with departmentsBudget Formulation AdviceBFASupports the production of•DTF Briefing Papers to ERC and MinistersPURPOSEBudget Formulation Advice Financials are revised to reflect policy variations…BFADepartments prepare ERC submissions based on revised departmental business plans or government strategic priorities.DTF recommendations are taken to ERC in the form of briefing papersERC (1 & 2) submissions are submitted to DTF via a standard templateERC evaluates recommendationsThe impacts of ERC decisions are reflected in financial statements, performance measures, objectives, outputs, investments and POBOSERC makes decisionsPROCESSSubmissions are analysed by DTF using analytical tools. DTF makes recommendations to ERC•To review departments’ Quarterly Performance Report relating to:•strategic issues and•performance in terms of asset and output delivery, using the performance indicators of quality, quantity and timeliness•To recommend to:•the Minister for Finance the appropriate level of revenue to be certified •ERC appropriate actions relating to strategic issuesPortfolio Performance ReviewPPRSupports the production of•The Quarterly Performance Report (Evaluation of departmental strategic Output Performance against quarterly targets & certification of revenue)•The Output Pricing Review processPURPOSEPortfolio Performance ReviewDTF & departments agree annual performance targets, which are published in Budget Paper 3Departments submit quarterly phasing of targetsEach department submits quarterly performance reportsDTF assesses strategic issues and analyses departmental performance against targets, in terms of asset and output delivery, to evaluate the degree to which revenue should be certifiedDTF prepares a report on 1. Strategic issues and recommended appropriate actions2. Performance against performance indicators for the Minister for Finance (summary statements of financial performance and financial position by department and at a consolidated level) 3. Revenue approvalThe Treasurer disperses fundsThe Minister for Finance signs off revenue recommendations and notifies DTFDTF reports to the Treasurer via the report noted above incorporating the Minister for Finance’s sign offDTF notifies departments of revenue to be recognisedDTF reports to ERC on strategic issues and recommends appropriate actionsPPRDTF agrees quarterly phasing of targetsEach quarter, departmental revenue is recognised by DTF for the delivery of outputs…PROCESSPortfolio Performance Review (cont.)Output costs information is prepared by departmentsDepartments submit output costs informationDTF prepares a report for ERC on output pricesDTF reports annually and quarterly to Commonwealth /National Accounts /ABS (GFS).PPRData is analysed to support pricing and output reviewsAnnually, each department submits actual output costs to DTF…PROCESS•To review and report the financial performance of:•General Government on a monthly and quarterly basis•Whole-of-Government on mid year and annual basis.•To provide stewardship and monitoring on behalf of Victorians to ensure integrity, performance and compliance•To provide sound financial management and investment of the state’s resources including cash•To report annually and quarterly for Commonwealth /National Accounts /ABS (GFS)Financial Reporting & ControlFRCSupports the production of•Monthly -General Government Sector reports•Quarterly -GFS and AAS Financial Statements for General Government Sector•Annual and half yearly -Whole-of-Government (WOG) reportsPURPOSEFinancial Reporting & ControlBudgets collected and reported…Actualscollected and reported…FRCMonthly, departmental actuals are reviewed and accepted DTF reviews and analyses actuals against budget and reconciles inter-entity balances, using a standard set of business rulesDTF consolidates and produces monthly reports for the Financial Reporting Committee Meeting and the Balance Sheet Management Committee, which report to the TreasurerQuarterly, mid year and annual reports are tabled in parliamentQuarterly, mid year and annual, WOG reports are producedDTF & departments agree annual financial estimates, which are published in Budget Paper 3Twice annually, departments phase their budgets to monthsDTF agrees monthly phasingsBudget phasings are acceptedHalf yearly and annually, departmental and agency actuals are reviewed and acceptedPROCESS•To manage the state’s cash, including to disburse, collect, invest and optimise in pursuit of maximised returns to government and minimise borrowing costs to the state•To provide an intergrated management of the Public Account, including investments, trust accounts and advances plus the public bank accountCash ManagementCMSupports the production of•Daily CMS transaction reports and trust balancing reports•Monthly balance reports comprising inter-entity balances, revenue for outputs, revenue allocated to SAU, and the Public Ledger update report•Forecasting of the cash position•Compliance to warrantsPURPOSECash ManagementAccount balances are downloaded from Desk BankCMDepartments provide initial current day expenditure adviceDTF makes a Short Term Money Market cash decisionDepartments provide further advice regarding expenditure and receiptsDTF compares known receipts against forecastsDTF makes a further cash decisionDTF uses a mismatch report to reconcile prior day balances to prior day estimatesMonthly decisions…DTF uses a mismatch report to reconcile the monthly SAU account balance to the daily aggregation of bank movementsDTF uses a mismatch report to reconcile between departmental inter-entity SAU accounts and the central DTF SAU accountDaily decisions and reconciliations…PROCESSJournals are received by departmentsDTF monitors cash drawdown against warrant amountsDepartments provide monthly cash transactions to the public ledgerBMS will provide one version of the truth to inform StakeholdersBDPBFAPPRFRCCMBMSDTFDepartmentsERCERCERCDepartmentsDTFDepartmentsTreasurerDepartmentsDTFDTFPortfolio MinistersDepartmentsParliamentABSMinister for FinanceAuditorTreasurerMinister for FinanceTreasurerTreasurerMinister for FinanceDTFTreasurerAuditorMinister for FinanceImplementation phase 1Budget Development & ProductionOctober 2002Budget Formulation AdviceOctober 2002Implementation phase 2Portfolio Performance ReviewJanuary 2003Financial Reporting & Control (Existing actuals)January 2003Implementation phase 3(Fully integrated BMS)Portfolio Performance ReviewJune 2003Financial Reporting & ControlJune 2003Communication, Training and SupportOngoingImplementation Plan