BelVEB Budgeting System
BelVEB Bank, Belarus
The system is designed to automate the reporting and budgeting processes of our customer. The project is aimed at creation of an automated system of budgeting and financial planning to improve the process of budgeting and reporting in the bank. The system will enable our customer to increase efficiency of the bank's accounting and budgeting departments by reducing time expenditures, minimizing manual labor, and avoiding duplication of similar operations.
To create the BelVEB system of budgeting and financial planning, IBA Group used IBM Cognos TM1 and IBM Cognos BI as a platform. The system automates a complete planning cycle covering all budgeting operations from the input of the operating budget and plan approval to the creation of consolidated statements in line with the requirements of the management accounting and the parent bank.
The budgeting model includes more than 115 operating budgets to plan business activities and more than 35 operating budgets to plan other activities, such as administrative costs, fixed assets, and taxes.
The system provides the following features:
- Portfolio and contract approaches to planning
- Planning with due regard to terms of liquidity
- Use of transfer rates
- Automatic tax calculation
- Consolidation of budgets
- Cost allocation
- Calculation of performance indicators.
Using Cognos BI, IBA implemented the basic output forms, including:
- Budgeted balance sheet
- Revenue and expenditure budget
- Gap report
- Cost estimate for administrative support and other activities.
In addition, the system created by IBA allows for plan / actual analysis, situation modeling, and budget audit support. IBA standardized and formalized master data for the centers of financial responsibility, banking products, items of balance sheet statement, and income and expenses.
BelVEB automated system made the budgeting process of the bank more transparent and manageable. Our customer is now able to carry out continuous automated control of budget execution, thus improving coordination of departments' work.
The project was successfully completed in 2013.
From 2014 to 2016, the system was modified to accommodate further annual optimization of budget processes and other changes. This includes changes in the organizational structure, product line, targeted indicators, and methodologies, as well as in the requirements of the parent company and regulatory authorities. In addition, the Cash Flow approach was implemented in the financial plan for the generation of cash flow statements.
Currently, IBA Group carries out maintenance and further development of the solution.
Sergei Zelenko, Deputy Chairman of the Board of Bank BelVEB, sent IBA a reference to thank for the implemented project. In his letter, he said: “We express our gratitude to IBA for professional excellence demonstrated when automating the system of budgeting and financial planning of the BelVEB bank. The automated system of budgeting and financial planning based on IBM Cognos TM1 and IBM Cognos BI made the process of current planning more transparent and manageable. We received a possibility to continuously control the implementation of the budget and better coordinate the work of our departments. Within the project, IBA implemented support of the complete planning cycle from input of operating budgets to approval of plans and creation of the system in line with the requirements of both managerial accounting and parent bank. The system is also used for notifying business departments about the bank’s key performance indicators and provides a possibility to introduce corrections on a quarterly basis. In addition, the system allows for a plan-fact analysis in managerial accounting in terms of the bank’s activity areas, banking products, centers for financial responsibility, and forms of currency, as well as for situation modelling, and for supporting the budget audit. IBA Group provided consultancy support, which enabled the bank to unify and formalize master data for centers of financial responsibility and banking products. We would like to underscore a high professional level of IBA experts. Their comprehensive, prompt, and creative approach to solving tasks, as well as their commitment to the final result allows us to consider possibilities for cooperation with IBA in the future.”