HIAPER Budget Oversight Practices and Procedures: Strategies for Success

1. HIAPER Budget Oversight Practices and Procedures: Strategies for Success • Geoff Cheeseman, Budget Analyst • HIAPER Project Office • HIAPER Debrief • 8 November 2005

2. Topics • Formulation of a Work Breakdown Structure (WBS) • Situation • Action • Result • Tools for Monitoring Expenses and Progress / Cost containment • Monthly • Quarterly • Special Reports • Detailed Budget Oversight Example • Integrated Project Team (IPT): Data Acquisition System Design • Final Analysis / Lessons Learned • Questions / Discussion

3. 1) HIAPER WBS • Situation – A WBS was needed that: • Followed the proposal’s outlined tasks • Was compliant with evolving guidelines (Facilities Management & Oversight; Major Research Equipment and Facility Construction) • Satisfied NSF Scientific Program Order (SPO) 15 reporting requirements • Was clearly separate from Atmospheric Technology Division (ATD), and Research and Related Activities (R&RA) funds • Would be a strong foundation for informative tools to management (more on that later) • Action • Consultations with UCAR Finance and Administration; NCAR Budget and Planning • Unique funding source and specific series of accounts dedicated to HIAPER and outside ATD’s accounting structure • Result – HIAPER WBS

4. 1) HIAPER WBS Initially identified contingency and Program Reserve funds: Acquisition and modification $2.7M Infrastructure $2.1M Subtotal $4.8M Less claims to date -$1.7M Balance (including wing pods) $3.1M

5. 2) Tools for Monitoring Expenses and Progress / Cost containment • Monthly • Funds Used Report (published on HIAPER website) • Budget Status Report • Non-labor & Labor Detailed Transactions • Open Purchase Order Status • Salary Encumbrances (who will be charging) • Quarterly • Management Information Report • EVMS - Earned Value Management System (published on a secured HIAPER website) • Special • Government Performance and Results Act (GPRA) • Detailed Labor Charging by Payday • Oversight of Contingency and Program Reserve (CPR)

6. 2) Tools for Monitoring Expenses and Progress / Cost containment Funds Used Report

7. 2) Tools for Monitoring Expenses and Progress / Cost containment Management Information Report • $2.5M transfer from HIAPER task Specifications/Acquisition to Infrastructure • Earmarked for GAP Instrumentation and additional engineering items

8. 2) Tools for Monitoring Expenses and Progress / Cost containment Provided in debrief folder with a full explanation of the baseline formulation

9. 3) Detailed Budget Oversight ExampleData Acquisition System Design Building an Earned Value Management System Are we there yet?! • How far have we gone? • How much time is left? • How efficient are we with our time? - also - • How much have we spent? • How much more will we have to spend? • How efficient are we being with our funds? Copies of the following are provided in the debrief folder.

10. 3) Detailed Budget Oversight ExampleData Acquisition System Design – EVMS Build • Group’s Charge (Scope or Statement of Work) • Identify Work Packages (Tasks or Milestones) • Create Gantt Chart Master Schedule excerpt

11. 3) Detailed Budget Oversight ExampleData Acquisition System Design – EVMS Build • Budgeted Cost of Work Scheduled (BCWS)

12. 3) Detailed Budget Oversight ExampleData Acquisition System Design – EVMS Build • Develop EVMS Baseline – Establish parameters and boundaries Document: HIAPER Infrastructure Budget and Explanatory Notes Baseline - BCWS

13. 3) Detailed Budget Oversight ExampleData Acquisition System Design – EVMS Build • Monitor Progress - Identify EARLY potential claims on Contingency and Program Reserve

14. 3) Detailed Budget Oversight ExampleData Acquisition System Design – EVMS Build • Establish parameters and boundaries for allowable expenses - Charge HIAPER when effort is “... specifically and solely targeted to HIAPER” “…a significant portion of the initial planning for the data acquisition system will involve discussion of plans and designs for hardware and software that will eventually be used not only by HIAPER but by other facilities within ATD and perhaps elsewhere within NCAR and UCAR. Consequently, the time of those individuals working on the data acquisition system task will not be charged to HIAPER during the initial phase of this task. Only when work is started to develop and integrate hardware and data acquisition software specifically for HIAPER will such charges be permitted.”

15. 3) Detailed Budget Oversight ExampleData Acquisition System Design - EVMS Build Data Table

16. 3) Detailed Budget Oversight ExampleData Acquisition System Design - EVMS Status 12/31/04 Data Acquisition System Design

17. 3) Detailed Budget Oversight ExampleData Acquisition System Design - EVMS Status 12/31/04 Data TableData Acquisition System Design

18. 3) Detailed Budget Oversight ExampleData Acquisition System Design - EVMS Status 12/31/04 Cost Variance Schedule Variance

19. 3) Detailed Budget Oversight ExampleData Acquisition System DesignLabor Expenses by Pay Day

20. Infrastructure Contingency Claims Status * CI = Contingency Impact

21. Contingency Funds Usage and Availability Summary Current estimate of funds to be turned over by HPO at completion of project in November

22. 4) Final Analysis / Lessons Learned • A challenge when MREFC guidelines were evolving (e.g.: “Operations” deemed inappropriate) • Pre-sequential accounting concept vital for MREFC compliance and to prevent the mixing of efforts but difficult to implement • Basis of Estimate (BOE) - more detail on assumptions • Hardware vs. Labor estimates – accuracy of such • When to rebaseline the EVMS? • Although HIAPER funding kept separate and not mixed, added complexity to ATD/EOL’s budgeting process • Wonderful opportunity for ATD/EOL but often a misconception of a HIAPER funding offset • Personally a significant time commitment that was not linear yet was immensely rewarding!

23. 5) Questions / Discussion