Slides 9 3 prepare forecasts, variances and reconciliation

DIRECTORATE OF COMMUNITY ACTIVITIESCost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER... DIRECTORATE OF COMMUNITY ACTIVITIESCost Based Management Review Organi

Prepare Forecasts, Variances and a

Reconciliation Briefing

Childcare Case Ft

Riley Intermediate Cost Analysis

and Management

What Makes a Good AAR Brief?

• What does your Senior Leader want to know?

• How should you present the information?

• What are your presentation pet peeves?

• What should you avoid?

Terminal Learning Objective

• Task: Prepare forecasts, variances and a

reconciliation briefing

•  Condition: You are training to become an ACE with

access to ICAM course handouts, readings, and

spreadsheet tools and awareness of Operational

Environment (OE)/Contemporary Operational

Environment (COE) variables and actors.

• Standard: with at least 80% accuracy

• Use scenario information to prepare forecast, variance

and reconciliation briefing

Child Care Centers

Part of The Family and Morale, Welfare and Recreation Command (FMWRC or simply MWR)

MWR’s Mission

FMWRC, The Family and Morale, Welfare and Recreation Command serves the needs, interests and responsibilities of each individual in the Army community for as long

as they are associated with the Army, no matter where they are, and provides the Army Family with the same quality of life afforded the society they protect

MWR & Leadership

• MWR is a comprehensive network of support and leisure services designed to enhance the lives of soldiers (active, Reserve, and Guard), their families, civilian employees, military

retirees and other eligible participants

• Over 37,000 MWR employees worldwide

• A 2-star general leads the FMWRC

C - Business Activities (User

paid - Non Appropriated

Child Development Center

at Ft Riley

• Part of Community Activities Directorate (Morale, Welfare, Recreation) that reports to Garrison

Commander

• Looks at cost in two categories

• Appropriated funds are supplied from Congress

• Non appropriated funds are received from user fees that parents pay based on rank

• The following brief was presented by the center

supervisor to the Garrison Commander

DIRECTORATE OF COMMUNITY ACTIVITIES

Cost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER

DIRECTORATE OF COMMUNITY ACTIVITIES

Cost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER

Note these math errors

10

Group Activity

• Divide into six groups

• Each group will have an assignment to prepare

information from the data on the previous

slides

• After preparing your information you will

brief the CO (class)

Group 2 Activity

• Simplify Data

• Fewer Categories, Fewer Numbers

• Group 2: Prepare one page that shows Jan

Plan, Feb Plan, and the change between them What questions should the CO ask when

looking at this analysis?

Group 3 Activity

• Simplify Data

• Fewer Categories, Fewer Numbers

• Group 3: Prepare one page that shows Dec

Actual, Jan Plan, Feb Plan, and the change

between them What questions should the

CO ask when comparing future plans to Dec’s results?

Group 4 Activity

• Simplify Data

• Fewer Categories, Fewer Numbers

• Group 4: Prepare one page that shows Dec

Plan, Dec Actual, and the change between

them What Questions should the CO ask

when comparing performance to plan?

Groups 5&6 Activity

• Simplify Data

• Fewer Categories, Fewer Numbers

• Groups 5&6: Prepare one page that shows all the relevant information of the original brief plus the variances of the Jan Plan to Dec

Actual and Feb Plan to Jan Plan Highlight

issues raised

Instructor

Materials

JAN PLAN

FEB PLAN

Total Cost

Revenue

Total APF Cost 75.5 78.0 (2.5)

Non Appropriated Funds

Non Appropriated Funds

Revenue 42.8 60.9 18.1 59.2 16.4 Pay and Benefits 53.1 70.2 (17.1) 56.3 (3.2) Supplies 0.8 1.0 (0.2) 1.0 (0.2) Other 1.6 1.6 0.0 1.6 0.0 Total NAF Cost 55.4 72.8 (17.4) 58.9 (3.5) Net Income -12.6 -11.9 0.7 0.4 13.0

Non Appropriated Funds

Revenue 59.0 42.8 (16.2) Pay and Benefits 52.8 53.1 (0.3) Supplies 1.0 0.8 0.2

Total NAF Cost 55.4 55.4 0.0 Net Income 3.7 -12.6 (16.3)

DIRECTORATE OF COMMUNITY ACTIVITIES

Cost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER

What’s the Story?

• Why is APF so favorable in December?

• Can we annualize and reprogram?

• Story:

• $6.7K special payment delayed until Jan

• $5.0K new hire delayed until Jan

• Conclusion: cannot annualize and reprogram

DIRECTORATE OF COMMUNITY ACTIVITIES

Cost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER

What’s the Story?

• Why was revenue/profit down $16K?

• Story:

• ($10K) December slow month for day care

• Why was this a surprise?

• Why didn’t we anticipate and reduce staffing?

• ($6k) Increased proportion of low rates

• Will this annualize and create a major problem for the year?

DIRECTORATE OF COMMUNITY ACTIVITIES

Cost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER

What’s the Story?

• Why are we adding so much payroll?

• Is this an opportunity?

• Can we avoid or defer?

• Can we shift people from other areas where their job is no longer needed?

• Story

• Unknown

• Action item for follow up

DIRECTORATE OF COMMUNITY ACTIVITIES

Cost Based Management Review Organizational Element: CHILD DEVELOPMENT CENTER

What’s the Story?

• What’s the risk of cost happening and revenue not happening?

• Does revenue rate problem go away?

• Why are we adding payroll?