COST MANAGEMENT INFORMATION SYSTEM

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COST MANAGEMENT INFORMATION SYSTEM

• Presented byLisa Johnson, Chief, Financial Mgmt
  Branch, ITS

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Purposes of ITS CMIS

• 1. Government Costs in Commercial Software
• 2. Activity-Based Cost Accounting Management
• 3. Cost-Based Budget Formulation Execution
• 4. Cost Information, Reimbursement and
  Collaboration with SCA and other Customers
• 5. Performance Optimization Efficiency

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CMIS Capabilities

• Developed chart of accounts for the new ITS
  Service Catalog
• Improved Methodology for direct and allocated
  costs
• Reports ITS costs to all management levels and
  customers.
• Extracts Monthly accounting DTRs and balances
  with Financial Reports
• Provides web-based reporting and analysis of
  costs
• Implements ITS cost metrics as approved by the
  IMOC
• Applies COTS Cost Management software to
  Government Enterprise
• Meets OMB criteria for cost management in
  Presidents Mgmt Initiative

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CMIS Cost Metrics
Provisioning an Employee of Workstations of
Peripheral Equipment of SCA employees Provisio
ning an Office of offices of wired
offices Hosting of servers Terabytes
Enterprise Data Storage Add-on employees with
blackberries employees with cell phones
employees with broadband cards Etc.
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DTR Listing Total

• JUNE 06 period 9
• 37 columns A AK
• 44761 rows
• Key columns are
• Fiscal year/month
• BOC
• Expenses
• Accounting Code
• Total expenses 38,791,012.24

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CMIS Output Matches DTR Total
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CMIS Cost Allocation Tables
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Metrics of Customer Demand (Workstations)
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CMIS FUNCTIONS

• Assigns and allocates FFIS DTR expenses of ITS
  Branches to Service Catalog, Customers and States
• Expenses are categorized by cost categories
  (Type)
• Direct/Integrated/Overhead
• Service Category (Communications, Hosting,
  End-User)
• BOC and Labor/Non-Labor categories
• Dimensional hierarchies and attributes enable
  many reporting options Allocation percentages can
  be changed with approval
• Assignment methodologies can be easily reviewed
  and adjusted
• Calculated results are reconciled with source
  data (DTRs and G/L)

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CMIS POTENTIAL FOR ITS

• Enables ITS to operate and compete like a
  business
• Improves the management of costs and operations
• Able to access/drill into low level of data
• Can analyze/research data to identify errors
• Enhances control over data for reporting/billing
• Supports decisions on investment and efficiencies
• Supports budget formulation, submission, and
  justification
• Validates ITSs costs compared to peer
  competitors
• Enables ITS managers to allocate resources
  effectively

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CMIS Report Menu
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Service Offerings Expenses by State
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CMIS Report Menu
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CMIS Expenses for States by ITS Office
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CMIS Graphical Output Direct Costs
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CMIS Graphic Indirect Costs
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CMIS IMPLEMENTATION PROCESS

• Initial CMIS Version was installed in July 2007.
• CMIS 14 for FY09 is updated for revised Service
  Catalog and emphasis on direct allocations of
  cost.
• Obtained ITFC/IMOC approval of metrics for FY2008
  and 2009.
• Provides cost and variance reports of FY2008 to
  ITS managers.
• Developing policy and practices for operations
  and security.
• Training users for web access.
• Establishing cost management policies and
  practices.
• Expanding uses and user base.
• Obtaining continuous feedback from the ITS
  managers.

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CMIS MODEL STRUCTURE
CMIS MODEL STRUCTURE
Model Statistics

• An Excel spreadsheet can have a maximum of 16.7
  million values (ignoring the impracticality of
  this.)
• CMIS14 is roughly equivalent to 2060 Excel
  spreadsheets, taking up FAR less hardware
  resources, and with the ability to EXPAND greatly.

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CMIS REPORTS

• The following screens show the FY2009 CMIS
  data structure and the linkages that the model
  builder uses to produce CMIS output reports.

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The ORGANIZATION dimension is made up of Branches
and Divisions. Also known as Responsibility
Centers (RCs), there is a placeholder for data
(e.g. Budget) which does apply to Branches, named
RC Unassigned.
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• The LINEITEM dimension is made up of consolidated
  DTRs from the source data which is imported into
  this model.
• The consolidated detail is identified by Type
  (Direct/Integrated/Overhead) and Service category
  (CS/BAH/EUS.)
• A separate Attribute hierarchy enables alternate
  reporting by
• Type
• Category
• BOCs

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The Service Catalog dimension (also known as Cost
Object 1 CO1) is made up of Categories,
Services, and Activities. The category
abbreviation is appended to the name to ensure
uniqueness. The Attribute hierarchy arranges
services differently for alternate reporting
purposes.
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This is the Customer dimension (also known as
Cost Object 2 CO2.) An Attribute hierarchy is
setup to hold only those customers currently
desired for reporting, e.g. omitting Indirect,
Forest Service, Other.
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This States dimension (also known as Cost Object
3 CO3) contains states and offices, Large and
Small.
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This is developer view will become a web book
for Budget analysis. This view shows Budget for
Integrated/Labor/Non-Labor by Service and
Customer. The book could serve as an input for
budget analysis and recommendation for allocation
of resources.
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Another view, this one shows Services by
Customer. The user can select the Period and/or
Branch-Division to filter the data as
desired. Once these Views become web-books for
the end users, the data will be nicely formatted,
with charts/graphs, and dropdown boxes, etc.
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This view shows Services by State. The User can
select Period and Branch-Division to filter the
data as desired.
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This view shows BOCs (Budget Object Class) by
Service Category and Service Offering. Here,
the user had selected BOC 2563. The data will
show only Services with that BOC Type of cost
Direct BOC Service Category (with a total at
the bottom) for the selected BOC. The next slide
will show what happens when a user selects a
different BOC.
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Here, the user has clicked the Line Item BOC 1101
in the dropdown box to display cost by type and
service category related to that BOC.
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(Same view as before but without the dropdown box
taking up a lot of space on the screen.)
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This view will be come a book for
Branches/Divisions by Customer. The user may
select Period and/or BOC to filter the data as
desired.
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This Variance report shows Budget, Annualized,
Variance and Variance Pct. Notice how Network
Services has been expanded.
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View showing Unit Cost for the Budget and
expenses to date. Each row is a particular
Service along with its corresponding metric
values.
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Services by Branch/Division User may select
Period, Customer to filter data as desired.
Notice how End-User Services is expanded to
drill-down to the Service Offering costs.
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States by Customer - User may select Period
and/or Service to filter data as desired. States
is expanded down to Large/Small Offices. User
can expand down as far as desired anytime, then
collapse back up. Notice how most of the cost is
in Not assigned to State (also known as CO3
Unassigned.) This is due to most Services not
having a metric which breaks down by State. Only
those Service whose metric is Workstations will
have a breakdown by State (Employee by state is
in development).
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BOCs (Labor/Non-Labor categories) by Service and
Branch/Division. The user may expand to any
level by simply clicking the sign.
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Showing BOCs by State User selects desired
State/Office from the dropdown. In the next
slide, user selected St. Louis.
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View after user selected St. Louis.
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Reporting Service Budget by Customer The rows
are the Reporting Services that use the same
metrics. The Workstation line is expanded to
show the service offerings costs.
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Budget Variance report by Customer. User can
expand Reporting Customers to see each
individual customer. User can also expand
Services. Notice how Data Center and Hosting
has been expanded at left.
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Each month, the FFIS DTR extract is posted to
this worksheet to be processed and prepared for
import to the CMIS model.
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As part of this monthly processing, a pivot table
is refreshed which enables a number of other
reports showing pre-allocated DTR cost, by
Accounting Code, Branch, Service, Customer,
State, Type, BOC, Vendor, Metric,
Labor/Non-Labor. Also, several other worksheets
which had been a laborious process to build, can
now be automatically generated, e.g. FY09-Metrics
worksheet.
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Here is the FY09 Metric worksheet which is
automatically generated each month.
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COST MANAGEMENT IS ESTABLISHED
CMIS enables ITS to better support USDA services
to the Agriculture Community.
Questions.?