Assumptions
What are Assumptions?
There are some common values that districts want to apply to multiple rules. We have introduced a mechanism for managing assumptions that can be applied across multiple budget-based rules. This will allow for the consistent application of common values, such as inflation rates, across various rules, which was previously accomplished by manually updating multiple rules. Now, users can assign all the impacted rules to be added to, subtracted from, multiplied by, or divided by the assumption. When the assumption changes, it happens in a single place, which impacts all of the associated rules at once.
Why would I use Assumptions?
A district may want to use assumptions to account for things like Material Goods Inflation, Projected Fuel Cost Changes, or Projected Heating Oil Cost Changes.
Assumption Types
The following assumption types are in Allocate. Districts can modify an assumption type by selecting the pencil icon. Districts can also add their own assumption type by selecting Create Definition.
Assumption | Description | Type |
|---|---|---|
Annual Inflation Rate | Expected inflation rate for salary and benefit adjustments | Percentage |
Cost of Living Adjustment | Annual cost of living adjustment percentage | Percentage |
Small School Adjustment | Fixed amount adjustment for small schools | Currency |
Special Education Adjustment | Special education program cost adjustment | Percentage |
Special Needs Supplement | Additional funding per special needs student | Currency |
Technology Enhancement Factor | Multiplier for technology-related expenditures | Numeric |
Transportation Adjustment | Transportation cost adjustment multiplier | Percentage |
Custom Assumption | Use the Create Definition option to create your own assumption. | Custom |
You may delete an assumption type by selecting the trash icon.
If you decide to use assumptions, follow the steps below to configure them in your account.
Step 1:
Create Assumption Definitions
In Allovue, select Allocate.
From Allocate, select Configuration.
From Configuration, select Assumption Definitions.
To create a new assumption type, select Create Definition.
Enter the assumption Name, select the assumption Type (Percentage, Currency, or Numeric). You may also optionally decide the sort order and enter a description for the assumption.
Once you are finished, select Save.
Edit Assumption Type
In Allovue, select Allocate.
From Allocate, select Configuration.
From Configuration, select Assumption Definitions.
Navigate to the assumption that you would like to edit and select the pencil icon.
Delete Assumption Type
In Allovue, select Allocate.
From Allocate, select Configuration.
From Configuration, select Assumption Definitions.
Navigate to the assumption that you would like to edit and select the trash icon.
Step 2
Create Assumption Set
Once you have determined your assumption types, you can associate an assumption set with a fiscal year. This allows you to group different assumption rules together and apply the set of assumptions to a Scenario projection. To associate your assumption types to an assumption set, follow the steps below:
In Allovue, select Allocate.
From Allocate, select Assumption Sets.
From Configuration, select Create Assumption Set.
Enter the name of the assumption set and the fiscal year. You can optionally define a description and sort order for the assumption set.
Select Save.
Step 3
Set Base Assumptions
Once you have setup your assumption sets, you will need to determine what assumption types apply to your assumption set. This allows you to set a standard set of assumptions for Scenario models. To do so, use the steps below:
In Allovue, select Allocate.
From Allocate, select Assumption Sets.
Choose the assumption set that you would like to modify and select the eye icon. All available assumption types will display.
Navigate to the assumption type that you would like to modify and select the pencil icon.
Enter the amount and select Save.
Step 4:
Associate Assumptions with a Scenario
In Allocate, Scenarios are model projections based on a combination of an Organization’s Enrollment Projections and Formulas created in Allocate. Multiple Scenarios can be created, and Allocate allows users to compare versions. Scenarios are “what-if” budgeting models. They let you explore the impact of changes, such as enrollment shifts, staffing adjustments, funding formula updates, gains/loss policies, or inflation without affecting the live budget.
On the Scenarios modal, you can select an Assumption set to associate with your Scenario.
In Allovue, select Allocate.
From Allocate, select Scenarios.
Navigate to the Scenario that you would like to modify and select the pencil icon.
A form will display and you will be able to select an assumption set from the drop down list.
Select Save to apply your changes.
Only one assumption set may be applied to a given Scenario.
Step 5:
Associate Assumptions with a Formula based Rule
In Allovue, select Allocate.
From Allocate, select Formulas.
Navigate to the Formula that you would like to modify and select the eye icon.
In the form, select the assumption type from the drop down menu.
Select the operation that you would like to use in the assumption
Add
Subtract
Multiply
Divide ➗
Select the rule input
Example: Revised Budget or Percentage
If you require more than one assumption, select Add assumption.
Select Save to apply your changes.
Only one assumption can be applied to each rule input.
Step 6:
Review Assumption calculations
Once all the setup is complete, you can review the assumptions in your Scenario Summary tab or in the Organizations funding breakdown. Use the steps below to review your assumption set up.
In Allovue, select Allocate.
From Allocate, select Scenarios.
Navigate to the Scenario that you would like to review and select the eye icon.
From the Scenario Summary Tab, you can review the assumptions applied to your Scenario.
From the Organizations tab, navigate to the eye icon of the organization that you would like to review. The assumption will display in the Funding Breakdown page for the selected Organization.