Farm Service Agency Managerial Cost Accounting Status Report

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Farm Service AgencyManagerial Cost
AccountingStatus Report

• Presented byDon Stonecypher, FSA BPMS Project
  Manager

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Purpose

• To share the status of the Managerial Cost
  Accounting component of the Budget and
  Performance Management System (BPMS).
• To raise cross-cutting policy and implementation
  considerations relevant to this group.

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FSA/CCC Business Need

• There is an insufficient understanding of the
  cost to
• deliver products, services ( particularly
  salaries and
• expenses) and outcomes.
• Manual cost finding techniques and a
  sampling-based
• Work Measurement/Workload System were used to
• derive gt 75 of cost information, resulting
  in
• management distrust in information.
• Managerial cost information is increasingly
  needed to
• justify budget requests and to be more
  responsive to
• oversight organizations.

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SFFAS No. 4 - Gaps

• Procedures to accumulate and report costs
  continuously, routinely and consistently for
  management information purposes
• Standard responsibility segment, program, and
  output definitions for external reporting
• Documented and reasonable cost accumulation and
  assignment methodologies (administrative cost
  only)
• Output-level full cost reporting which considers
  direct and indirect cost structure
• Periodic measurement of cost productivity (per
  unit costs)

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Cost Detail Gaps
- denotes information gap
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Project 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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Implementation Components
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Technology Solution
Cost Accounting Models (BPMS System)
Reports and Analysis
Data Collection
Cost Accounting Model
Agency Management Reporting and Warehouse
Environment (e.g. Hyperion, Crystal Reports)
SAP Enterprise Performance Management 11.3
(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
Forrester rated the product 100/100 for activity
based costing, now the SAP cost accounting
product.
Workload Data/Systems
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Pilot Results

• Comprehensive training approach and package
• Worked in close collaboration with HR staff and
  NFC
• 600 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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Screen Shot Cost Model Structures
Mission Direct Activities
Mission Enabling Activities
Mission Support Activities

• Activity Notes
• Employees enter time against an activity/program
  combination

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Screen Shot Cost Model Structures
Goal-Related Outputs (Workload Driven) Activity
data is driven to a combination of FSA Goal /
USDA Goal by a Goal Contribution ratio
Goal-Related Outputs (Workload Driven) Activity
data is driven to a combination of FSA Goal /
USDA Goal by a Goal Contribution ratio
FSA Strategic Goals
USDA Strategic Goals
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Screen Shot Cost Model Reports
Users click on a pilot state to see cost reports
for that state
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Screen Shot Cost Model Reports
The State Dashboard provides 4 charts depicting
the costs for the selected state
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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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Potential Cross-Cutting Topics

• Standardization of Indirect Activities/Activity
  Dictionary across Agencies
• Consistent Cost Accounting Methodology for
  Indirect Activities and Green Book Charges
• Information sharing from other Agencies to arrive
  at full cost
• Managerial Cost Accounting Data Mart/Warehousing
• IT Support Strategy