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

2. 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

3. 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

4. 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

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6. Note these math errors 6

7. 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

8. 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

9. 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

10. 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 201110

11. 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 201111

12. 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 201112

13. Instructor Materials © Dale R. Geiger 201113

14. Group 1 Graph 0.0 20.0 40.0 60.0 80.0 100.0 120.0 140.0 160.0 DEC ACT JAN PLAN FEB PLAN Total Cost Revenue © Dale R. Geiger 2011 14

15. Group 2 Analysis Jan PlanFeb PlanVar Jan Appropriated Funds Pay and Benefits64.468.1(3.7) Special Payment6.70.06.7 Supplies4.59.9(5.4) Total APF Cost75.578.0(2.5) Non Appropriated Funds Revenue60.959.2(1.7) Pay and Benefits70.256.313.9 Supplies1.0 0.0 Other1.6 0.0 Total NAF Cost72.858.913.9 Net Income-11.90.412.3 © Dale R. Geiger 201115

16. Group 3 Analysis Dec ActualJan PlanVar DecFeb PlanVar Dec Appropriated Funds Pay and Benefits54.164.4(10.3)68.1(14.0) Special Payment06.7(6.7)0.0 Supplies3.54.5(1.0)9.9(6.4) Total APF Cost57.675.5(17.9)78.0(20.4) Non Appropriated Funds Revenue42.860.918.159.216.4 Pay and Benefits53.170.2(17.1)56.3(3.2) Supplies0.81.0(0.2)1.0(0.2) Other1.6 0.01.60.0 Total NAF Cost55.472.8(17.4)58.9(3.5) Net Income-12.6-11.90.70.413.0 © Dale R. Geiger 2011 16

17. Group 4 Analysis Dec PlanDec ActualDelta Plan Appropriated Funds Pay and Benefits58.854.14.7 Special Payment6.70 Supplies4.23.50.8 Total APF Cost69.657.612.1 Non Appropriated Funds Revenue59.042.8(16.2) Pay and Benefits52.853.1(0.3) Supplies1.00.80.2 Other1.6 0.0 Total NAF Cost55.4 0.0 Net Income3.7-12.6(16.3) © Dale R. Geiger 2011 17

18. © Dale R. Geiger 2011 18

19. 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 2011 19

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21. 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 2011 21

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23. 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 2011 23

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25. 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 2011 25

26. Reconciliation DecemberRevenueCost Actual 42.8112.9 Plan 59.0124.9 Variance (16.2) 12.0 Explanation Low Attendance (10.0) -- Low Rates (6.2) -- Delayed Hire -- 5.0 Delayed Special Payment -- 6.9 All Other --.1 © Dale R. Geiger 201126