EV Variance Reporting Checklist to get you through an Audit
After going through multiple audits at one of my last clients, I started a checklist for Problem Analysis to support Corrective Action options. I wanted to make sure I covered most, if not all, of the potential Earned Value (EV) issues that may be questioned during a financial audit. Here’s the results of that checklist:
- Are the variance drivers identified?
- What scheduled tasks are creating the unfavorable variances?
- Of those tasks, what constitutes the majority of the variance? [tweetmeme source=”@Aidan_Foley” only_single=false]
- Are there specific technical, or other risks / opportunities that are driving the variance?
- Is each Root Cause defined separately, such as external influences, contract issues, staffing issues, etc?
- What tasks were performed ahead / behind schedule, and why?
- Are any of those tasks on the Critical Path of the Schedule?
- Did the Control Account Manager (CAM) identify, and quantify all errors in the data?
- Did you account for the majority (at least 80%) of the variance?
- Did you spell out your acronyms the first time they were used?
- Is there a clear, concise explanation for the reasons of the variance?
- If a favorable Cost Variance (CV) long-term?
- What is the new Estimate At Completion (EAC)?
- Does the Total Cost Performance Index (TCPI) support the new EAC?
Covering these issues in detail up front will guarantee a more successful audit downstream.
Have you experienced any other issues that I didn’t cover? I’d be VERY interested. Thanks!