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EV Variance Reporting Checklist to get you through an Audit

May 8, 2010

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!

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