1. Variance Analysis Tool (VAT) Overview Session
Bill Bay
7/16/2018

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4/6/2019
Agenda:
Introduction
Training objectives
Overview of the VAT process
Accessing the tool
VAT links & support
Appendix
General navigation tips & key functions of the VAT
View variances for a department
Review variances & drill down
View entered comments
Enter explanations
Approve comments & explanations

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Introduction
The Variance Analysis Tool (VAT) is used to enable managers and directors to collaborate with finance to review actual to budget variances and determine actions to ensure the organization can meet its financial targets.
This allows us to:
Monitor our progress towards reaching our financial goals
Provide a standard approach to review and analyze actual vs. budget results
Develop a process to address variances
Multi-user/entity

4. Introduction: What is the VAT?
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Introduction: What is the VAT?
Online tool used to support Numbers Day
Already in use on the West Bay and works with MyReports Monthly Variance Report
Tool features:
Automatic s are sent once per month
Managers enter explanations for variances; Division leaders review & approve those explanations
Work together to document action plans to correct variances
Multi-user/entity

5. Introduction: What is Numbers Day?
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Introduction: What is Numbers Day?
Meetings once a month with managers, executive directors, and VP’s to review budget variances
Departments with large, unfavorable variances are required to attend
Focus of the meetings will be on reviewing explanations of variances, developing action plans, and monitoring progress on plans and goals
Multi-user/entity

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Training objectives
By the end of this session, you will be familiar with how to access the tool, navigate and perform key functions for reviewing variances, adding comments and approving explanations.

7. Overview of the VAT Process
7th – 10th
Business Day
11th
11th Business Day
to the Day before
Numbers Day
Starts on the 4th
Thursday of the
month
Post
Month-end Close
Managers receive notifications that the VAT is available
Managers review and provide comments and explanations of variances
Finance and managers complete agreed upon tasks by provided deadlines
Numbers Day review meetings to discuss operations
with senior leadership
Monthly Variance reports become available shortly after the 10th business Day
Division Leaders approve comments after all are entered
Follow-up items are recorded in Action Logs
For August, here are the key dates:
Thursday, 8/16: VAT is open for comments for July variances
Thursday, 8/23: Numbers Day
Today

8. Accessing the VAT Accessing the VAT
If you have been granted access to MyReports, you have been already granted access to the VAT
Requires the UCSF Health Management Reporting Role (same access for viewing Labor Productivity and Monthly Variance Reports)
If you do not have access, see Getting System Access (

9. Accessing the VAT Accessing the VAT Option 1: UCSF MyAccess Click Here
Click Here

10. Accessing the VAT Accessing the VAT Option 2:
UCSF Health Finance Website
Or here….

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28. Examples of Variance Explanations:
Good Explanation and Action Plan
August Action Plan -
1. Manager should Follow Up with Finance on CORE Staffing Model. (Report Back December 2018)
2. Our COO would like us to follow up with Children Hospital LA in order to Confirm The Equivalent Build Staffing Model - On Going
3. Work Closely with Material in effort to reduce supplies
4. Redeployed Management Coord to work with Night shift To serve in Mentoring Monitoring Capacity
5. Bring Per Diem with Experienced ED RN to Plus Additional in Future Month (Dec - Jan) which will help to reduce OT.
6. Hire Manager at Night shift, position off-set by reducing an open position in trauma by 0.5 FTE. Fill open positions cut down OT expense
7. As the acuity level has gone up, check possibility of raising facility fee charge.
Not So Good Explanation and Action Plan
1. Our budget is wrong
2. Not sure why the expenses are so high, will need to check
Presentation Title

29. Specific Examples of Good Variance Explanations:
Presentation Title

30. Division Leaders click the box to approve the comments
Approval process:
Division Leaders click the box to approve the comments
Once the division leaders approves the comments, the black check mark will turn green
Only the division leader can approve once all comments/explanations within a cost center are entered
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31. What to expect on Numbers Day
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What to expect on Numbers Day
Division Leaders and Managers will be invited to a specific meeting time on the 4th Thursday
Together with Financial Planning & Budget, variance explanations will be reviewed
If needed, an action plan will be discussed and agreed to during the meeting
Open actions will be reviewed at the Numbers Day meeting the following month
When you save your note the red X will turn into black check marks. Once approved, with all comments and explanations, the checkmarks turn green.

32. What to do you need to do to prepare for Numbers Day?
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What to do you need to do to prepare for Numbers Day?
Enter in the VAT: a reason code for the variance, ie “Prior period posting”, “Unplanned Expense”.
Enter in the VAT: your comment regarding the variance.
For the VAT: approval by the divisional director (green check!).
Be prepared to discuss: your corrective plan. What is going to be done, who is going to do it, and when. What roadblocks could impede the correction and what support is needed.
Be prepared to discuss: current status of plans from prior months. What has been done, what has worked and what has not worked. What will be done next and when will it be done.
Note: most of the department reviews during Numbers Day will be brief, just a few minutes per department. Be concise.
When you save your note the red X will turn into black check marks. Once approved, with all comments and explanations, the checkmarks turn green.

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VAT links & support
To set up a MyAccess account, see Get MyAccess
To get security access to the VAT or the MyReports Monthly Variance Report, see Getting System Access under the Support page of the UCSF Health Finance website
To access the VAT, follow the link on the UCSF MyAccess page or UCSF Health Finance home page
To view this training webinar or access job aids from the Training page of the UCSF Health Finance website
For questions, issues or support, please Bill Bay

34. VAT Frequently Asked Questions
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VAT Frequently Asked Questions
To view FAQs, see the FAQ page on the UCSF Health Finance website

35. Questions?