Organization Based Control – Childcare Case Ft. Riley © Dale R. Geiger 20111

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? © Dale R. Geiger 20112

Terminal Learning Objective Task: Prepare a forecasts, variances and reconciliation briefing Condition: You are a cost advisor technician with access to all regulations/course handouts, 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 © Dale R. Geiger 20113

Child Development Center Background 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 © Dale R. Geiger 20114

5

Note these math errors 6

Group Activity Divide into six groups information data 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) © Dale R. Geiger 20117

Group 1 Activity Group 1: Prepare a graph with two lines: total cost (both APF and NAF) and revenue. Interpret the graph for the CO. © Dale R. Geiger 20118

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? © Dale R. Geiger 20119

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? © Dale R. Geiger

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? © Dale R. Geiger

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. © Dale R. Geiger

Instructor Materials © Dale R. Geiger

Group 1 Graph DEC ACT JAN PLAN FEB PLAN Total Cost Revenue © Dale R. Geiger

Group 2 Analysis Jan PlanFeb PlanVar Jan Appropriated Funds Pay and Benefits (3.7) Special Payment Supplies4.59.9(5.4) Total APF Cost (2.5) Non Appropriated Funds Revenue (1.7) Pay and Benefits Supplies Other Total NAF Cost Net Income © Dale R. Geiger

Group 3 Analysis Dec ActualJan PlanVar DecFeb PlanVar Dec Appropriated Funds Pay and Benefits (10.3)68.1(14.0) Special Payment06.7(6.7)0.0 Supplies3.54.5(1.0)9.9(6.4) Total APF Cost (17.9)78.0(20.4) Non Appropriated Funds Revenue Pay and Benefits (17.1)56.3(3.2) Supplies0.81.0(0.2)1.0(0.2) Other Total NAF Cost (17.4)58.9(3.5) Net Income © Dale R. Geiger

Group 4 Analysis Dec PlanDec ActualDelta Plan Appropriated Funds Pay and Benefits Special Payment6.70 Supplies Total APF Cost Non Appropriated Funds Revenue (16.2) Pay and Benefits (0.3) Supplies Other Total NAF Cost Net Income (16.3) © Dale R. Geiger

© Dale R. Geiger

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 © Dale R. Geiger

© Dale R. Geiger

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? © Dale R. Geiger

© Dale R. Geiger

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 © Dale R. Geiger

© Dale R. Geiger

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? Story Unknown Action items taken to review rates and consider increase © Dale R. Geiger

Reconciliation DecemberRevenueCost Actual Plan Variance (16.2) 12.0 Explanation Low Attendance (10.0) -- Low Rates (6.2) -- Delayed Hire Delayed Special Payment All Other --.1 © Dale R. Geiger