Holroyd City Council in NSW believes it has developed a new budgeting system which overcomes some of the problems associated with other systems. The system, BUDSYS, developed in conjunction with Econsult Management Consultants, is a fully menu driven multi user system.
It incorporates Activity Based Costing, Budgeting (including monthly budgeting) distribution of overhead costs, production of Operating Statements, Cash Flow Statements and the ability to aggregate Responsibility Centre costs to Programs, Sub Programs and provide summarised reports.
BUDSYS’ advantages lie in its speed, clarity and ability to provide a standardised approach to budgeting. It caters for all cost centres, such as Council buildings or waste management services, and expenses related to specific activities.
It can identify areas of potential cost savings, requires less clerical effort, thus freeing staff for more productive activity and enables budgeting to be delegated to middle level managers. It also matches community expectations for greater operational accountability, transparency and contestability.
Holroyd Council believes the combination of clearer financial reporting contributes to improved Local Government service. Producing clearer, more focused documentation, it is easier for lay people to understand. This is of great value to Councillors who may not have the expertise to fully understand Budget documents that are presented to them.
Peter Lyle, Manager of Financial Services at Holroyd, said that the system enables Council to run its operation in a more business like manner. It delivers faster and more effective information on which to base decision making.
“BUDSYS assists Council to see a more holistic financial picture, both at corporate and program levels, and to work through the financial issues,” he said. “It also assists the conversion from project to operating statement based financial management.”
He said that, to date, items of up to $800,000 have been identified where improvements or changes in work structures or practices could bring about better outcomes for less financial input.
“Interest in the package has come from the State Government which faces similar challenges as Local Government,” Peter Lyle said.
A number of private sector organisations use a similar application including the Commonwealth Bank, Epson Computers and Rabbit Photos.
For further information contact Peter Lyle, telephone (02) 9840 9777.
