Unanet & Earned Value Management White Paper

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Unanet Technologies 45240 Business Court, Suite 300, Sterling, VA 20166 P (703) 689-9440 F (703) 689-9450 www.unanet.com EVM Intent Guideline 21: For EVMS, the material accounting system will provide for: 21.1: Accurate cost accumulation and assignment of costs to control accounts in a manner consistent with the budgets using recognized, acceptable, costing techniques. 21.2: Cost performance measurement at the point in time most suitable for the category of material involved, but no earlier than the time of progress payments or actual receipt of material. 21.3: Full accountability of all material purchased for the program including the residual inventory This functionality would typically be provided by the accounting system. Material costs recorded in Unanet can be exported to the accounting system through automated interfaces. Similarly, actual material costs can be imported into Unanet and applied at the appropriate level for comparison with budget data. Analysis and Management Reports EVM Intent Guideline 22: At least on a monthly basis, generate the following information at the control account and other levels as necessary for management control using actual cost data from, or reconcilable with, the accounting system: a) Comparison of the amount of planned budget and the amount of budget earned for work accomplished – SCHEDULE VARIANCE b) Comparison of the amount of the budget earned and the actual (applied where appropriate) directs costs for the same work. – COST VARIANCE Unanet calculates and reports Budgeted Cost of Work Scheduled, Budgeted Cost of Work Performed, Actual Cost of Work Performed, Schedule and Cost Variance, Schedule and Cost Variance Percentage, Schedule and Cost Performance Indices, Budget At Complete, Estimate at Complete and Variance at Complete. This data can be calculated for a user-specified ‘current period’ and also cumulatively for the life of the project. EVM Intent Guideline 23: Identify, at least monthly, the significant differences between both planned and actual schedule performance and planned and actual cost performance, and provide the reasons for the variances in the detail needed by program management. Unanet provides reports detailing schedule and cost performance variance and indices, and allows project managers to document reasons for variances as required, based on needs and thresholds established by program management. Specific thresholds for cost and schedule variances, and variance at complete, can be specified in reporting so that those items requiring management attention are easily identified. EVM Intent Guideline 24: Identify budgeted and applied (or actual) indirect costs at the level and frequency needed by management for effective control, along with the reasons for any significant variances. Unanet provides a suite of summary and detailed reports showing budgeted and actual indirect costs. Indirect costs can be calculated using target, provisional or actual burden rates. Unanet provides facilities for recording Notes where reasons for variances can be documented. EVM Intent Guideline 25: Summarize the data elements and associated variances through the program organization and/or work breakdown structure to support management needs and any customer reporting specified in the contract. In Unanet, budget, actual and earned value data are held at the detail level. This information can be summarized to any level of the WBS, and variances used for analysis and problem resolution. 6
Unanet Technologies 45240 Business Court, Suite 300, Sterling, VA 20166 P (703) 689-9440 F (703) 689-9450 www.unanet.com EVM Intent Guideline 26: Implement managerial actions taken as the result of earned value information. In Unanet, action items with associated responsibilities can be recorded in the Project Notes facility, and tracked to completion and adequate resolution. Unanet provides relevant managers with real-time access to project performance data that allows them to identify variances. EVM Intent Guideline 27: Develop revised estimates of cost at completion based on performance to date, commitment values for material, and estimates of future conditions. Compare this information with the performance measurement baseline to identify variances at completion important to company management and any applicable customer reporting requirements including statements of funding requirements. Unanet provides this data in real-time. Projects Managers can see estimates to completion on a constant basis, and are better able to manage the project to on time / on budget completion because they have access in realtime to the direct costs related to their projects. Indirect costs can be calculated and displayed as required based on target, provisional or actual burden rates to provide a complete picture of project status. Revisions and Data Maintenance EVM Intent Guideline 28: Incorporate authorized changes in a timely manner, recording the effects in budget and schedules. In the directed effort prior to negotiation of a change, base such revisions on the amount estimated and budgeted to the program organizations. Unanet captures budget and schedule changes in the audit trail and also via a user-generated snapshot with a specified effective date. Further, the real-time view for project managers provides the earliest possible recognition of potential problems and thus the best opportunity to mitigate those problems before they threaten the project schedule. EVM Intent Guideline 29: Reconcile current budgets to prior budgets in terms of changes to the authorized work and internal replanning in the detail needed by management for effective control. Unanet allows ‘snapshots’ to be recorded of both project and task budgets, and percent complete, as required by the project manager. Unanet’s audit trail capabilities enable management to achieve this level of control. Furthermore, original plans and budgets can be compared. EVM Intent Guideline 30: Control retroactive changes to records pertaining to work performed that would change previously reported amounts for actual costs, earned value, or budgets. Adjustments should be made only for correction of errors, routine accounting adjustments, effects of customer or management directed changes, or to improve the baseline integrity and accuracy of performance measurement data. Unanet provides control over historical adjustments and can enforce recording of reasons for changes made. A detailed audit trail is recorded of any authorized changes made, in full compliance with DCAA timekeeping requirements. EVM Intent Guideline 31: Prevent revisions to the program budget except for authorized changes. Unanet provides comprehensive security access control including project and organization-level access, roles that control access, and an audit functionality. EVM Intent Guideline 32: Document changes to the performance measurement baseline. Unanet provides facilities for recording Notes against a project to support those changes recorded by the Audit functionality that require annotation and explanation. 7
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