Financial reports on table

Financial Reporting and Analysis

AgFirst offers a full range of software and support services to promote accuracy, consistency and efficiency in financial reporting while helping Associations meet increasingly complex reporting requirements and analysis needs. The goal is to empower users with the ability to produce information and not just data.

Peoplesoft open on computer

Peoplesoft

AgFirst provides access to a commercial enterprise resource planning system, PeopleSoft. The PeopleSoft system is a fully integrated financial system that has been tailored to meet the reporting needs of our users and includes modules for general ledger, accounts payable, asset management (fixed assets), and time and expenses. AgFirst provides a library of standard reports, training and system support, and manages all enhancements and upgrades. Key services and features of the PeopleSoft modules include:

General Ledger

  • Nightly batch processing of online, spreadsheet uploaded, and system integrated journals.
  • Capability of real-time posting by system administrators.
  • Historical data from 2001 to current available online.
  • Common chart of accounts to promote consistency. New accounts are opened quickly to meet Association needs.
  • System rules are designed to allow, restrict and require certain account combinations.
  • AgFirst builds and maintains financial allocations specified to meet Association needs.
  • A separate ledger for tax reporting that is created from a copy of the financial ledger and allows adjustments to be made one month in arrears.
  • Access to general ledger data for analysis is available via Microsoft Office products.

Accounts Payable

  • Master vendor list with the capability to handle multiple addresses and payment options.
  • Electronic workflow approval.
  • Invoice and check images through an integrated document management system, iSynergy.
  • EFT payment processing, with files transmitted by AgFirst daily.
  • 1099-Misc reporting with back-up withholding capability. AgFirst handles the mailing to vendors and electronic file submission to IRS after review and approval by the Association.

Asset Management (Fixed Assets)

  • Interface with Accounts Payable allows assets to be created when invoices are paid.
  • Accommodates large volume changes using a Mass Change feature, which AgFirst manages.
  • Data extract for the tax reporting software, CS Professional, which AgFirst administers and provides tax reports to Associations.
  • Projected depreciation for budgeting.

Time and Expenses

  • Integration with AgFirst’s Human Resources Lawson system, including security, work and leave hours, workflow routing, and employee bank accounts for expense reimbursement.
  • Ability to add prepay auditors in addition to managers for expense report workflow.
  • Customizable expense categories.
  • Ability to electronically upload receipts and documentation to expense reports.
Working using Hyperion

Financial Analysis and Management Reporting

AgFirst provides access to a commercial enterprise performance management system, Hyperion, to facilitate accuracy, consistency and efficiency in the reporting and analysis process. This centralized planning and reporting solution receives integrated data from two primary data warehouses: the Financial Data Warehouse (FDW) for non-loan-related data and the Enterprise Data Warehouse (EDW) for loan-related data. Hyperion makes available a range of information, including financial, budget, loan and investment data via reports or Smart View, a Microsoft Excel add-in.

A standard library of currently more than 200 management, shareholder and regulatory reports in Hyperion is provided and maintained by AgFirst. Hyperion Reports are dynamic so the same report can be run for multiple selection criteria, thereby reducing the number of report versions that need to be maintained. Associations have the ability to copy and customize any of the standard reports or create their own reports to meet their Association’s specific requirements. Reports can be run on demand or can be scheduled in a batch process for distribution. In addition to reports, Associations have the ability to run ad-hoc queries and build charts and graphs using Smart View.

An in-house application has been developed by AgFirst to allow adjustments to system-generated data so the adjustments can be entered once and flow seamlessly into Hyperion and all Hyperion-generated reports and queries. AgFirst’s staff provides training and system support, manages enhancements and upgrades, and maintains the hierarchy structures within the Hyperion databases to ensure accuracy and consistency.

Women looking at shareholder information

Shareholders and Regulatory Reporting

AgFirst assists Associations with the completion of quarterly and annual reporting requirements, including shareholders’ reports, Call Reports, internal controls certification and reporting, and detailed loan data reporting required by regulators. Technical guidance on the implementation of accounting and regulatory requirements is also provided.

The shareholders’ reporting process is managed through an extensive, collaborative SharePoint site for each Association. This allows for files to be shared by the Association and the AgFirst financial reporting staff, which facilitates efficient input, review and approval at each step along the way. In addition, files are archived on the SharePoint site to allow for future reference. An accounting guidance library maintained by AgFirst is also provided to Associations via SharePoint. Meetings are conducted with Associations on a quarterly basis (and more frequently as warranted) either via video or live conference to discuss accounting and reporting updates.

A shareholders’ report draft containing rolled forward prior period data and updates for new disclosure requirements is provided to each Association to begin the quarterly and annual report process. AgFirst completes Association core financial statements, including the balance sheet, income statement, statement of comprehensive income, statement of changes in shareholders’ equity, and cash flow statement, and provides them to Associations for review and approval. In addition, supporting footnote documentation files, including loan, employee benefits and fair value information, are provided on SharePoint for Association review and approval. Once approved, AgFirst utilizes this documentation to populate footnote information in the shareholders’ report and performs a complete review, including reconciliation, cross-referencing and footing. This allows Associations more time to focus on the management discussion and analysis section of the report. AgFirst provides final formatted reports, ensures that Association shareholders’ reports are posted to websites in accordance with FCA regulations, and on an annual basis provides the reports to the outside printer. AgFirst provides graphic design and creative writing services to assist Associations in producing a visually impressive annual report that highlights current topics of interest unique to each Association.

AgFirst assists with annual external audits of Associations by centrally providing standard Association general ledger and loan system reports to PricewaterhouseCoopers (PwC), as well as coordinating timetables, report changes and final report approval. AgFirst also coordinates required internal controls reporting and certification and provides common guidance to Associations regarding the management of internal controls systems, including implementation, standardization, documentation and testing.

Automated reports, which populate approximately 80% of Association quarterly Call Reports, are available to Associations on demand. These reports are maintained and updated by AgFirst as Call Report requirements change. Automated reports, which provide the basis for calculating regulatory capital ratios, are also available on demand and are updated and maintained by AgFirst.

AgFirst provides centralized back office processing of required detailed loan data reporting to FCA on a quarterly basis. The supplied data highly leverages our Enterprise Data Warehouse, using District standardized definitions. Each quarter, Associations are provided:

  • A pre-quarter-end report two weeks prior to quarter end for data validation.
  • A pre-certification report by the fifth business day following quarter end.
  • The ability to request corrections and adjustments.
  • A final certification report by the 18th business day following quarter end.
  • Electronic signature workflow for report certification.
  • Archived reports and data upon request.

AgFirst provides the data extract in Microsoft Excel format, allowing Associations the ability to query and validate data in a standard, user-friendly tool. In addition, AgFirst provides a summary report that balances to Call Report equivalent schedules and data quality reports to identify missing data in key fields.

The AgFirst District has established a Data Stewards Workgroup, which consists of a representative from each Association. This workgroup meets quarterly to discuss process changes and enhancements, discuss data quality improvements, share best practices, and build relationships across the District in order to find opportunities to gain efficiencies in the reporting of required detailed loan data to FCA.

Budget report on computer screen

Budgeting

AgFirst utilizes Hyperion Planning to meet the budgeting needs of the District. Two planning applications within Hyperion are currently available: Workforce Planning for budgeting salaries and benefits, and Budget Planning for all non-salary-related financial accounts.

Workforce Planning is a dynamic tool that allows for budgeting at the employee or general ledger account level and is integrated with AgFirst’s Human Resources Lawson system for employee information. Salary and benefit values from Workforce Planning are passed to the Budget Planning application at a summary level.

Budget Planning allows for detailed income statement and balance sheet input at the general ledger account level. Associations can choose to have AgFirst prepopulate the current budget with prior year financial information and anticipated depreciation. AgFirst maintains a variety of input forms that allow for flexible methods of entry by Associations, including direct input, driver-based input and allocations. The input forms can be accessed through a web interface called Workspace or through Smart View. Currently, the creation of plan Balance Sheet values (i.e. loan volume, allowance, etc.) and related expenses occurs outside of Hyperion, either through an Association’s internally built Excel models or third-party software, and these values are uploaded into Hyperion.

In addition to budgeting, the Budget Planning application provides the ability to create forecasts at each month-end. Forecasts can be compared to actuals, initial budget or a prior forecast.

Business woman gripping a stress ball

Stress Testing

AgFirst collaborated with District Associations to create and refine a stress test model to satisfy the FCA regulatory requirement to perform an annual stress test. The model consists of an Access-based portion that handles the portfolio characteristics and an Excel-based portion that converts that information into a balance sheet, income statement, CIPA score, FIRS rating, and asset quality reports. Model training, support and documentation are provided by AgFirst.

The model employs a top down approach to portfolio manipulation, which allows the user the flexibility of accommodating a diverse array of scenarios. The portfolio can be changed via historic migrations, regression analysis or expert hypothesis. There are six total commodity groups that the portfolio can be segmented into and each of those groups can be adjusted differently.

The resulting portfolio information is then placed into the financial section of the model that incorporates actual financial statements and data, along with forecasted assumptions, to produce stressed financial reports.