United Energy & Multinet Gas
CASE STUDY
United Energy & Multinet Gas
CASE STUDY United Energy
Benefits of SaaS when Implementing a Treasury and Risk Management Solution at United Energy & Multinet Gas by David Volf, Finance Transition Manager
[
]
“Given the strict timeframes and challenges, a web-based solution became a key driver in selecting a TRM.”
About United Energy and Multinet Gas United Energy (UE) is an electricity distributor responsible for delivering electricity to over 640,000 customers in Melbourne, Australia’s south eastern suburbs and the Mornington Peninsula. Multinet Gas (MG) is the largest distributor of natural gas in Victoria, Australia and serves connections in Melbourne’s inner and outer eastern and south eastern suburbs to more than 660,000 residential, commercial and industrial gas users.
I
n mid-2003, UE and MG restructured
for treasury back office processing was in
their business model and entered into
2003, so the insourcing project represented
a single outsource arrangement with
a significant shift in the way the businesses
Jemena Asset Management for the
operate,
a
greater
level
of
provision of Network, IT and Corporate
accountability for managing the day to day
Services, which included back office treasury
settlement processes through to treasury
operations.
reporting.
However,
“Taking into consideration the fact that UE and MG were recruiting a new treasury back office team at the same time, minimal customization and implementation time was of paramount importance.”
including
recently,
regulatory
changes,
The
treasury
team
faced
significant
technology and shareholders have driven UE
challenges in light of the new business
and MG to embrace a new business model,
model. Not only did they have numerous
going from one that is centered on a single
contractual issues to handle, but they also
outsourced contract to that of a mixture of
had to recruit and train new treasury staff
in-house and outsourced services. As part
and select and implement a new treasury
of the insourcing of Corporate Services
and risk management solution (TRM) within
across both UE & MG, treasury settlements
four months of the mandate.
processing was handed back from Jemena Asset Management in June 2011. The last time UE & MG had operational responsibility
CASE STUDY United Energy
“Using Reval, the company now operates with a solution that is reliable, transparent, easy to use, and easy to extract reports from.”
Selecting a Treasury and Risk Management Solution
•
Market reputation
•
The ability to perform complex hedge accounting
An existing treasury management system used by Jemena Asset
The solutions UE and MG initially considered, including the incumbent
Management was highly customised and could not be supported going forward, so UE and MG began looking for a solution that could accommodate their goals, as outlined by the mandate. These goals included:
system used by Jemena Asset Management required much customization and long implementation times. Taking into consideration the fact that UE and MG were recruiting a new treasury back office team at the same time, minimal customization and implementation time was of paramount
•
To complete the transition by July 2011, including:
importance.
•
Recruitment and on-boarding of new resources;
•
Defined business processes in place;
Software-as-a-Service (SaaS) a Key Driver for Selecting Reval
•
Updated treasury policies and procedures, reflecting the change in business practice; and
•
Selection and implementation of a new Treasury and Risk Management solution within four months
Given the strict timeframes and challenges, a web-based solution became a key driver in selecting a TRM. Reval, which was designed since inception as a multitenant, software-as-a-service solution, offered a more flexible solution, and one that was easier to implement with demonstrable service continuity and performance. Delivery via SaaS
UE and MG required a solution that had a strong control environment that
also eliminated double entry by different users. With simply a username
would ensure that transition risk and financial risk were being appropriately
and password, the outsourced front office could have easy access to the
managed. The solution also needed to perform both treasury settlements
system access for keying in deals.
and hedge accounting for a business where complex derivatives were in place, and equally important, the solution needed to be implemented with minimal IT support within very tight time constraints. The requirements included: •
An established Australian market presence
•
Transition experience
Other considerations that made Reval an ideal choice, is Reval’s secure environment, its ability to be implemented without requiring much IT support, and the strength of its hedge accounting module, which provides greater transparency into the underlying hedge transactions.
CASE STUDY United Energy
“Reval was able to meet UE’s goals of implementing a solution on time and on budget for a fully functioning insourced treasury department within a four-month window.”
Benefits of Using Reval Reval has given UE and MG the ability to monitor the settlements for all treasury instruments, including Forward Contracts, Interest Rate Swaps, Cross Currency Swaps, Revolving Credit, Working Capital, US Private Placement and AUD Bond notes. The companies are able to generate monthly valuations, interest accruals and position reports, and to perform quarterly hedge accounting and generate relevant reports. Reval has allowed UE and MG to move away from performing hedge accounting in Excel spreadsheets, which were too complex to construct, too time consuming to manage, and too risky to keep in any one person’s control. Using Reval, the company now operates with a solution that is reliable, transparent, easy to use, and easy to extract reports from. With these benefits, Reval was able to meet UE’s goals of implementing a solution on time and on budget for a fully functioning insourced treasury department within a four- month window.
David Volf Finance Transition Manager [email protected] David is a Certified Practicing Accountant who has 15 years finance and accounting experience with 8 years experience in the Utilities industry. Currently employed as the Finance Transition Manager at UE & MG and has been with company since July 2009. As part of this role, David was responsible for Project Managing the transition of Treasury Middle and Back Office activities back in-house.
About Reval Reval is the leading, global Software-as-a-Service (SaaS) provider of comprehensive and integrated Treasury and Risk Management (TRM) solutions. Our cloud-based software and related offerings enable enterprises to better manage cash, liquidity and financial risk, and includes specialized capabilities to account for and report on complex financial instruments and hedging activities. The scope and timeliness of the data and analytics we provide allow chief financial officers, treasurers and finance managers to operate more confidently in an increasingly complex and volatile global business environment. Using Reval, companies can optimize treasury and risk management activities across the enterprise for greater operational efficiency, security, control and compliance. Founded in 1999, Reval is headquartered in New York with regional centers across North America, EMEA and Asia Pacific. For more information, visit www.reval.com or email [email protected].
United Energy & Multinet Gas
CASE STUDY United Energy
Benefits of SaaS when Implementing a Treasury and Risk Management Solution at United Energy & Multinet Gas by David Volf, Finance Transition Manager
[
]
“Given the strict timeframes and challenges, a web-based solution became a key driver in selecting a TRM.”
About United Energy and Multinet Gas United Energy (UE) is an electricity distributor responsible for delivering electricity to over 640,000 customers in Melbourne, Australia’s south eastern suburbs and the Mornington Peninsula. Multinet Gas (MG) is the largest distributor of natural gas in Victoria, Australia and serves connections in Melbourne’s inner and outer eastern and south eastern suburbs to more than 660,000 residential, commercial and industrial gas users.
I
n mid-2003, UE and MG restructured
for treasury back office processing was in
their business model and entered into
2003, so the insourcing project represented
a single outsource arrangement with
a significant shift in the way the businesses
Jemena Asset Management for the
operate,
a
greater
level
of
provision of Network, IT and Corporate
accountability for managing the day to day
Services, which included back office treasury
settlement processes through to treasury
operations.
reporting.
However,
“Taking into consideration the fact that UE and MG were recruiting a new treasury back office team at the same time, minimal customization and implementation time was of paramount importance.”
including
recently,
regulatory
changes,
The
treasury
team
faced
significant
technology and shareholders have driven UE
challenges in light of the new business
and MG to embrace a new business model,
model. Not only did they have numerous
going from one that is centered on a single
contractual issues to handle, but they also
outsourced contract to that of a mixture of
had to recruit and train new treasury staff
in-house and outsourced services. As part
and select and implement a new treasury
of the insourcing of Corporate Services
and risk management solution (TRM) within
across both UE & MG, treasury settlements
four months of the mandate.
processing was handed back from Jemena Asset Management in June 2011. The last time UE & MG had operational responsibility
CASE STUDY United Energy
“Using Reval, the company now operates with a solution that is reliable, transparent, easy to use, and easy to extract reports from.”
Selecting a Treasury and Risk Management Solution
•
Market reputation
•
The ability to perform complex hedge accounting
An existing treasury management system used by Jemena Asset
The solutions UE and MG initially considered, including the incumbent
Management was highly customised and could not be supported going forward, so UE and MG began looking for a solution that could accommodate their goals, as outlined by the mandate. These goals included:
system used by Jemena Asset Management required much customization and long implementation times. Taking into consideration the fact that UE and MG were recruiting a new treasury back office team at the same time, minimal customization and implementation time was of paramount
•
To complete the transition by July 2011, including:
importance.
•
Recruitment and on-boarding of new resources;
•
Defined business processes in place;
Software-as-a-Service (SaaS) a Key Driver for Selecting Reval
•
Updated treasury policies and procedures, reflecting the change in business practice; and
•
Selection and implementation of a new Treasury and Risk Management solution within four months
Given the strict timeframes and challenges, a web-based solution became a key driver in selecting a TRM. Reval, which was designed since inception as a multitenant, software-as-a-service solution, offered a more flexible solution, and one that was easier to implement with demonstrable service continuity and performance. Delivery via SaaS
UE and MG required a solution that had a strong control environment that
also eliminated double entry by different users. With simply a username
would ensure that transition risk and financial risk were being appropriately
and password, the outsourced front office could have easy access to the
managed. The solution also needed to perform both treasury settlements
system access for keying in deals.
and hedge accounting for a business where complex derivatives were in place, and equally important, the solution needed to be implemented with minimal IT support within very tight time constraints. The requirements included: •
An established Australian market presence
•
Transition experience
Other considerations that made Reval an ideal choice, is Reval’s secure environment, its ability to be implemented without requiring much IT support, and the strength of its hedge accounting module, which provides greater transparency into the underlying hedge transactions.
CASE STUDY United Energy
“Reval was able to meet UE’s goals of implementing a solution on time and on budget for a fully functioning insourced treasury department within a four-month window.”
Benefits of Using Reval Reval has given UE and MG the ability to monitor the settlements for all treasury instruments, including Forward Contracts, Interest Rate Swaps, Cross Currency Swaps, Revolving Credit, Working Capital, US Private Placement and AUD Bond notes. The companies are able to generate monthly valuations, interest accruals and position reports, and to perform quarterly hedge accounting and generate relevant reports. Reval has allowed UE and MG to move away from performing hedge accounting in Excel spreadsheets, which were too complex to construct, too time consuming to manage, and too risky to keep in any one person’s control. Using Reval, the company now operates with a solution that is reliable, transparent, easy to use, and easy to extract reports from. With these benefits, Reval was able to meet UE’s goals of implementing a solution on time and on budget for a fully functioning insourced treasury department within a four- month window.
David Volf Finance Transition Manager [email protected] David is a Certified Practicing Accountant who has 15 years finance and accounting experience with 8 years experience in the Utilities industry. Currently employed as the Finance Transition Manager at UE & MG and has been with company since July 2009. As part of this role, David was responsible for Project Managing the transition of Treasury Middle and Back Office activities back in-house.
About Reval Reval is the leading, global Software-as-a-Service (SaaS) provider of comprehensive and integrated Treasury and Risk Management (TRM) solutions. Our cloud-based software and related offerings enable enterprises to better manage cash, liquidity and financial risk, and includes specialized capabilities to account for and report on complex financial instruments and hedging activities. The scope and timeliness of the data and analytics we provide allow chief financial officers, treasurers and finance managers to operate more confidently in an increasingly complex and volatile global business environment. Using Reval, companies can optimize treasury and risk management activities across the enterprise for greater operational efficiency, security, control and compliance. Founded in 1999, Reval is headquartered in New York with regional centers across North America, EMEA and Asia Pacific. For more information, visit www.reval.com or email [email protected].
