Farm Service Agency Managerial Cost Accounting Status Report

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Farm Service AgencyManagerial Cost
AccountingStatus Report

• Presented byBob McGrath Deputy BPMS Program
  Manager

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Purpose

• To update the status of the Managerial Cost
  Accounting and cost management component of the
  Budget and Performance Management System (BPMS).

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Cost Management

• A decision making process based on truly relevant
  cost and performance information.
• A tool for planning and determining how to
  improve the Agency's operations.

What is Cost Management?
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Cost ManagementProject Scope

• Implement a more organized grouping of method and
  structures designed to consistently produce
  reliable cost information
• Identify the appropriate managerial cost
  accounting methodology
• Formalize managerial cost accounting as a
  management practice
• Implement managerial cost accounting business and
  technology infrastructure

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Cost ManagementBenefits

• Accurately predict costs and resources
  requirements associated with changes in
  production volumes, organizational structure and
  costs of resources.
• Track costs of activities and work processes.
• Equip managers with cost intelligence to
  stimulate improvements.
• More organized data can lead to more organized
  information better decisions.

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Cost Management Activity Reporting System

• The Activity Reporting System (ARS) is used in
  conjunction with the time and attendance system.
• ARS gives the Agency the ability to see the labor
  time and cost associated with programs,
  activities, and direct and indirect program
  support.

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Cost Management Activity Reporting
SystemBenefits

• With the right data going through the system, ARS
  will help
• Identify where resources are being spent
• Determine and justify the number of people
  required to get the job done
• Determine the amount of reimbursable time spent
  for other agencies.

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Implementation Components
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Pilot Results

• Comprehensive training approach and package
• Working in close collaboration with HR staff and
  NFC
• 1000 employees are entering time by program and
  activity across 5 states, 25 counties, multiple
  HQ locations.
• Process and data feeds between NFC and the Agency
  are tested and are becoming more systematic.
• Cost model is built and processing information
  and running reports every month initial
  insights into cost structure.
• Workload and unit costing is still being tested.
• Awaiting WebTA availability to complete the full
  rollout.

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Cost Management Technology Solution
Reports and Analysis
Data Collection
Cost Accounting Model
Agency Management Reporting and Warehouse
Environment (e.g. Hyperion, Crystal Reports)
SAP Profitability And Cost Management 7.0(part
of OCFO Suite)
F D W
FFIS/STAR
Fee Studies
PLAS
Reporting Data Mart
Data Staging Area
CORE/CCC2
NFC Time and Attendance System
Program Efficiency Measures
Workload Data/Systems
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Cost ManagementEnd State Vision
End State
Current State
Automated
Manual Processes
Decentralized
Centralized
Performance Benchmarking
Limited Cost Per Unit Data
Integrated Data
Unlinked Data Sources
Full Trace-Back Capability
No audit trail
Performance Based Budgeting
Traditional Budgeting
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Cost Management
EPM Main Menu Screen
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Cost ManagementCost Flow Example
Activities
Outputs/Cost Objects
SE Per Unit Cost
Units
Activity Cost
Unit Drivers
Hours
Direct Farm Loan
Direct Activities
Applications
104
2,374.87
246,905
Loans
83,550
125
668.40
Mission Support and Mission Enabling Activities
CRP
7035
179
39.31
Applications
Direct Activities
101998
304
335.52
Contracts
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Cost ManagementAdministrative Cost Model
User selects a Report Book to view reports.
Cost Management Main Menu
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Cost ManagementCost ModelAdministrative Cost
Model
Use next to the descriptions to collapse the
list or to expand the list.
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Cost ManagementCost ModelAdministrative Cost
Model
You can view a specific program by using the drop
down menu. In this example, Conservation
Programs are displayed.
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Cost ManagementCost ModelAdministrative Cost
Model
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Cost ManagementAdministrative Cost Model
The Data Analysis Books are additional
enhancements to the model in the future.
Cost Management Main Menu
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Cost ManagementHyperion ReportsARS
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Cost ManagementHyperion ReportsARS
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Cost Management

• Loaded ARS Labor Hours by Pay Period,
  Conservation Workload and Completed Allocations
  for NE Pilot County Offices
• Loaded ARS Labor Hours by Pay Period for Pilot
  Organizations in Headquarters and State Office
  Locations
• Created Analytical Books (including CLR
  Functionality)

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Cost Management Screen Shot Cost Model Reports
The State Dashboard provides 4 charts depicting
the costs for the selected state
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Cost Management Screen Shot Cost Model Reports
Selecting "Chart View" displays the below chart
Select Version and Fund
Views program data by location and pay period for
the selected version and Fund
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Questions?