Variance Analysis Tool (VAT) Overview Session

1. Variance Analysis Tool (VAT)Overview Session Bill Bay

2. Agenda: • 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 • Introduction • Training objectives • Overview of the VAT process • Accessing the tool • VAT links & support • Appendix

3. 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

4. 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 emails are sent once per month • Managersenter explanations for variances; Division leaders review & approve those explanations • Work together to document action plans to correct variances

5. 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

6. 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 Numbers Day review meetings to discuss operations with senior leadership Managers receive email notifications that the VAT is available Finance and managers complete agreed upon tasks by provided deadlines Managers review and provide comments and explanations of variances Month-end Close Post Numbers Day 7th – 10th Business Day 11th Business Day 11th Business Day to the Day before Numbers Day Starts on the 4th Thursday of the month 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 (https://healthfinance.ucsf.edu/getting-system-access)

9. Accessing the VAT Accessing the VAT Option 1: UCSF MyAccess https://myaccess.ucsf.edu/ Click Here

10. Accessing the VAT Accessing the VAT Option 2: UCSF Health Finance Website https://healthfinance.ucsf.edu/ Or here….

12. Pick SFCHO

13. Naughty List (top) Nice List (bottom)

14. Threshold amounts

15. 1 2 3 4

22. Back to the FTE’s….

28. Good Explanation and Action Plan Examples of Variance Explanations: Not So Good Explanation and Action Plan Presentation Title

29. Specific Examples of Good Variance Explanations: Presentation Title

30. 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 onceallcomments/explanations within a cost center are entered

31. 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

32. 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.

33. 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 email Bill Bay (wbay@mail.cho.org)

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

35. Questions?