The VanFM Framework represents a comprehensive financial modeling system whose copyright protection stems from both the unique selection and arrangement of its components and the creative expression in the system as a whole.
The VanFM Framework employs a unique architecture and unique design elements and proprietary macros (computer programs) including:
a) a core system of worksheets including "Title Page", "Setup", "ACTUAL", "BUDGET", "Yearly FS", "Quarterly FS", "MonthlyFS", "Audit Trail", and "Input" or, in the case of multiple business units, "DUM", with each functional worksheet tab typically having its own unique colour (RGB), (e.g. "ACTUAL" , yellow colour (255,255,204), "BUDGET" , green colour (204,255,204), "DUM" or "INPUT" , blue colour (141,180,226), "Yearly FS", "Quarterly FS", and "Monthly FS" , gold colour (250,191,143), "A", "B", etc. (when used) , bright yellow colour (255,255,0), "Title Page", no colour.
b) a "DUM" worksheet. "DUM" is a blank business unit, suitable for ALL business units, containing all the General Ledger accounts with an integrated Income Statement, Balance Sheet, and Cash Flow Statement. "DUM" contains macros (computer programs) that produce a proprietary sensitivity analysis that is part of a custom dashboard. "DUM" also includes clickable buttons either containing or linked to macros (computer programs) that have standard functions, and in some cases, custom functions depending on the specific requirements of each model. "DUM" is also designed intentionally and specifically such that selecting most blocks, as a full year, can be copied to future years ("Block Copy"). Block Copy is utilized throughout the model, not just in the "DUM" worksheet.
c) proprietary macros (computer programs) that automatically duplicates the "DUM" worksheet by the number of business units in the business.
d) a proprietary consolidation methodology, often using macros (computer programs), utilizing worksheets "A" and "B", or similar, as structural markers, producing a consolidated worksheet, labelled "CONS" (or similar), with a custom formula ("=SUM(A:B!A1)") to generate consolidated financial statements and select information below the Income Statement, for business unties between "A" and "B". The custom formula can be modified easily if additional markers are desired. For example, a custom formula ("=SUM(A:F!A1)") could be used for business units between "A" and "F" and a custom formula ("=SUM(D:F!A1)") could be used, for a subsidiary, for business units between "D" and "F".
e) integration capabilities with external accounting systems through "ACTUAL" and "BUDGET" worksheets, that populate each business unit worksheet through proprietary data mapping.
f) a proprietary "Setup" worksheet that allows for user,configurable date ranges for Actual and Budget data that automates the descriptors for "Actual", "Budget", and "Forecast" for worksheets throughout the model. In addition, these descriptors at the top of each worksheet, for each business unit, determine which worksheet, either "ACTUAL" or "BUDGET", the model should select to get the required data.
g) a custom Income Statement, Balance Sheet, Cash Flow Statement layout and format, including a custom background colour for the statements (204, 255, 255), including a standalone column for the opening Balance Sheet (t=0), including disciplined and precise labelling at both the top of each statement and throughout each statement, and including a custom number format, _(* #,##0,_);_(* (#,##0,);_(* ","??_);_(@_), that displays numbers as (000s) without the need to divide by 1,000 if required.
h) a custom Cash Flow Statement, where descriptors are formula driven from "Input" or, in the case of multiple business units, from "DUM". Most of the Cash Flow Statement values are generated from the Balance Sheet with a simple formula of "left minus right" for the Asset side of the Balance Sheet and "right minus left" for the Liabilities and Shareholders Equity side of the Balance Sheet. The remaining Cash Flow Statement values are generated directly from values from the Income Statement. The Cash Flow Statement also includes a disciplined and precise use of the descriptor, "Cash generated from (used in)" that appears only once.
i) a custom check, primarily for visual purposes, at the bottom of the Cash Flow statement that confirms that the "ending Cash balance" at the bottom of the Cash Flow statement equals the "Cash for the period ended" on the Balance Sheet.
j) a custom method whereby "Yearly FS", "Quarterly FS", and "Monthly FS" roll separately and independently, serving as a key check on Cash at each year end and at model end, where the key check is typically displayed at the top of the "Input" worksheet or the top of the "Title Page" worksheet.
k) a custom method of validating the financial model by using the Opening Balance Sheet, rolling the Income Statements forward with the Balance Sheet through the Cash Flow Statement and then confirming that Cash at each month end, quarter end, and year end as reported by the financial model reconciles with the actuals as reported by the business.
l) a proprietary macro (computer program) that produces a completely hard keyed Excel workbook, suitable for producing a printable PDF document, with new worksheets intentionally created to produce select bookmarks in the PDF, including a clickable "Table of Contents". Although the PDF can be printed, it is best viewed on a computer monitor allowing the user to quickly navigate and see any of the bookmarks or itemized "Table of Contents". The purpose of the PDF is to have a record of the business at a snapshot in time. The macro is designed such that the PDF can be produced at any time a snapshot of the business is desired. Once the PDF has been generated, it can be refined for enhanced visual clarity through the addition of bookmarks, modification of the bookmarks font and color, organization of the bookmarks into groups, and indentation of the bookmarks to demonstrate hierarchical structure where appropriate.
m) proprietary checks, using conditional formatting, throughout the model so that when the check passes, "OK" is seen in the cell in green background colour (204, 255, 204) or when the check fails results in "ERR", or similar, in red background colour (255, 0, 0).
n) a custom blue font colour for input cells (0, 0, 255).
o) a custom red font colour (255, 0, 0), typically for master input cells. Master input cells are cells that drive other input cells or are input cells that have been driven by other master input cells. The intent of the red font is that although one can enter input in this cell, one should be aware that this is a special input cell.
p) a custom number format, _(* #,##0_);_(* (#,##0);_(* ","??_);_(@_), for almost all numbers in the model.
q) a proprietary method to forecast working capital accounts using a Monte Carlo simulation incorporating mean and standard deviation from historical values. The Monte Carlo simulation produces a range of values for each working capital account and the corresponding range of values for Cash. The P50 forecast for each working capital account and the corresponding P50 forecast for Cash is also reported.
r) a custom minimum Cash build, where the user can select the desired minimum Cash, and the model will automatically draw down from the Operating Line if required.
s) a proprietary implementation of linear programming using Excels built in "Solver" and "Goal Seek", utilizing macros (computer programs), including price sensitivities and shadow pricing.
t) a custom implementation of an INTERNAL COMPARE analysis to the BASE Scenario using proprietary macros (computer programs) to Turn ON/OFF COMPARE worksheets and Set current scenario as BASE Scenario, with custom worksheet tab colours for both the BASE Scenario worksheet (black) (13,13,13) and the NEW Scenario minus BASE Scenario (red) (255,0,0).
u) an "Audit Trail" worksheet (typically the last worksheet). The "Audit Trail" documents the timeline of changes made to the model, the nature and source of the changes, and the rationale for the changes. This worksheet also documents model additions and enhancements to the model including bug fixes.
