About Structuring a Cost Management System:
What It Will Cover and Tangible Benefits

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This course component examines how a cost management system can be developed to support any business model or activity. This course will:

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1. Demonstrate how an optimum system would work: how actual transaction records are entered into a system; how support costs are allocated; and how overhead costs are distributed to activities. 
2. Show how reporting dimensions can be set up to slice and dice costs any way desired for either a management dashboard of for reports, including recurring reports that can be published to the web, exported into excel worksheets, and manipulated by pivot tables into even greater detail if necessary. 
3. Show, as examples and as a case study of what works and what doesn't, the power of an actual recently completed system that handles many thousands of transactions every month.
4. Demonstrate how a system should and can be flexible enough to support any business model, including annual appropriation accounts, working capital or franchise funds, or any other enterprise. 
5. Demonstrate how prior year transactions are also input and allocated to present full costs. 
6. Demonstrate how you also can drill back into the detail to research a problem all of the way back to an individual transaction, which can then be tracked back in the financial system all of the way to an actual obligating document.
7. Show how one system, recently completed for one of the largest federal cabinet departments, meets the requirements of the President’s Management Initiative for Cost Management.  It has been designated by the department's Deputy CFO to be the model that any other cost management system developed in the department will have to be modeled after.

Who Should Attend?

Program, Budget/Financial, IT/IS, Strategic Planning, Management, Project Managers, and Key Staff, etc, who:

• are intending to implement a cost management system in their organizations;
• need to know more about how a cost management system should and actually can operate, and how it would support their activities;
• need to understand how to operate and how to implement a cost management system in their organization;
• need to understand how a cost management system will help them plan for where they want to be in 1-3, 5, or 10 years; and
• need to know more about the IT/IS requirements of a cost management system and what solutions and tools are available.

PROGRAM

8:00 am - 9:00 am  Continental Breakfast, About the Program, and Introductions/Objective

9:00 am - 10:30 am  Mapping Input from Detailed Transaction Records Into a System

• Showing the Detailed Transaction Records and how they are fed into a system
• Showing how allocations and distributions are made in a system.
• Showing how dimensions are set up in a system that can match any information requirements that can be imagined.

10:30 am - 11:00 am  Refreshments, Additional Q & A, and Hug & Mug Opportunity

11::00 am - 12:30 pm  Developing Allocation Percentages to Distribute Support Costs and Overhead

• Separating costs by type of transaction -- each may have a separate allocation method. 

• Separate cost pools may be setup at organizational levels: division or branch levels.

• Separate methods for assigning costs for each pool

• Allocation techniques that handle any organizational and business model.

12:30 pm - 1:30 pm  Luncheon

1:30 pm - 3:00 pm  Assignment of Costs to Reporting Dimensions

• Showing how costs are assigned to any dimensions possible -- e.g., by state or any other possible breakouts desired.

3:00 pm - 3:30 pm  Refreshments, Additional Q & A, and Hug & Mug Opportunity

3:30 pm - 4:30 pm  Developing Management Dashboards, Recurring Reports and Queries

• This is shown last but determining what outputs and reports are desired and in what level of detail is one of the first things you should decide. 
• A system should be designed that can ensure that the desired reports and outputs can be delivered each month.
• Includes a discussion of how this system will meet the President’s Management Initiative for Cost Management

4:30 pm - 5:00 pm  Q & A; Summary of the Course; Intro to 3rd Day:

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