Municipality

public sector financial management

Responsible public finance

Implementation Man-days

0

Days

Interconnected Models

0

Models

Business Acc. Units

0

Units

General Ledger Accounts

0

Accounts

Operating Accounts

0

Accounts

Data records available online

0

Thousands

Project Highlights

Introducing a commercial investment management solution to a public non-for-profit environment.

Data comes from a portfolio of 16 different companies with data source systems in various formats.

The implementation period was limited to 6 weeks during summer vacation time.

Pain Points & Operational Challenges

Different data sources

Different data sources, no ability to see a bigger picture

The municipality owns or co-owns several profit organizations, operating in the public sector, including public transportation company, garbage collection company, water works company, exhibition centre, technical services company etc. It also operates non-profit organisations such as museums, schools, city hospital, theatres, senior housing, etc.

During the implementation of MYGIDE the municipality was finishing implementation of an Oracle based BI/MIS solution for collecting and presenting historical statutory financial and other operational information of the organisations, for use by relevant departments at the city hall.

Different data sources

Different data sources, no ability to see a bigger picture

The existing process consisted a team of 8 people responsible for liaising with city organisations, analysing their data, playing a supervisory role to the organisations representing interest of the Municipality, and also advising city authorities on various business related decisions such as a change in pricing for public services, capex programs, etc. Many such analyses were made on an ad hoc and one off basis. They covered analysis of a partial problem based on data presented by the organisations, often without a possibility to asses a bigger picture, in time.

The municipality challenge was to have a good quality forward looking information so that they could play not only a ‘messenger role’ vis a vis management of the organisations, but play a stronger role as an “investment manager”.

Key Benefits

Consolidated overview

One consolidated overview of all profit organisations

GIDE provided the municipality a consolidated and individual organisation overview of all profit organisations at statutory financial statement levels, including selected performance and operational drivers (e.g. number of people using public transport, mileage covered, etc.).

The consolidated overview included profit and loss accounts, balance sheets, cash flow statements, capex, cash balances, and more. This all available in a data modelling environment enabling the municipality not only to analyse historical performance of the last three years, but also anticipate likely future financial performance of the organisations and have the possibility to directly affect key decisions.

Consolidated overview

One consolidated overview of all profit organisations

The requirements of the organisations, e.g. changes in pricing, can now be assessed in a holistic fashion – understanding the impact on future cash flow and its impact on the city financials where subsidies are needed.

The municipality considers connecting selected organisations online to MYGIDE server so that more comprehensive models can be developed and more interactivity between the organisations and municipality financial managers is enabled.

Project Milestones

  • 7th Day

    Data available for analysis of the 16 different organisations.

  • 14th Day

    A set of complete statutory accounts based cash flow models created for each organisation and consolidated.

  • 21st Day

    Data imports of 3 year history for each organisation and initiation of data importing routine.

  • 24th Day

    Series of interactive workshops aimed at enhancing the team’s financial modelling capabilities.

  • 27th Day

    Presentation of consolidated historical financial statements and likely 5 year future development.

  • 28th Day

    Municipality’s employees began adjusting the models and modelling functions with assistance of the implementation team.

  • 30th Day

    MYGIDE project implemented.