2013-04-03 government contractor systems

Thrive. Grow. Achieve.

Seth Zarny – Raffa Partner Kellye Jennings – BDO Partner Glenn Anstead – Raffa Senior Manager

April 3, 2013

Government Contractors Financial & Project

Management Systems Seminar

AGENDA

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• Introductions – BDO, Raffa, & Audience • Accounting Challenges for Govt Contractors • Typical Govt Contracting Accounting

Requirements • Accounting System Overview

– On-demand Financial & Project Reporting – Project Management & Job Summary Reports – Earned Value Management

• DCAA Time and Expense Reporting • Provisional & Indirect Cost Analysis

WHO IS RAFFA?

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Microsoft Gold Competency ERP Partner with offices in Washington, DC and Rockville, MD

Specializing in Project Management & Accounting (PMA) solutions for Professional Services, NGO’s, Government Contractors, and Other Project Driven Organizations 260 management, accounting, and systems professionals

DO YOU NEED THE NEW SOFTWARE?

HINT – SOMETIMES YOU NEED TO CHANGE YOUR SOFTWARE!

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OUR SOLUTION

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• Project Management and Accounting from Microsoft Dynamics – An integrated suite of 9 modules that provide

financial accounting, project management and resource management capabilities

– Key features include: time and expense management, billing, revenue recognition, cost allocations, contract management, payroll reporting, employee and resource utilization, and real-time project profitability analysis

– Integration with Microsoft Project combines real-time financial data with best-of-breed project planning, task scheduling, knowledge management, and skills management capabilities

OUR CUSTOMERS

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• Business Services, Consulting, IT and Computer Services, Engineering, Government Contractors, Public Relations / Lobbying, and Construction

• All size companies in the mid-market spectrum – typically $5-500M revenue & 25-1000 employees

• Project-centric divisions and departments in large enterprise

CRITICAL REQUIREMENTS FOR SUCCESS…

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CRITICAL REQUIREMENTS FOR SUCCESS

WHAT TO LOOK FOR WHEN REVIEWING INTEGRATED SOLUTIONS?

Out of the Box, Proven Financial and Operational Software

•Proven management of Indirect and Direct Costs •Integrated across Finance and Project Management / Operations

•Business Process Automation •Setup Flexibility to meet business needs

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BUSINESS PROCESS IMPROVEMENTS

INDIRECT RATES • Monitor Trends via Management Reporter • More Accurate Cost Information for Bidding • More Accurate Historical Procurement Costs

TRACEABILITY OF SOURCE DOCUMENTS

• Management Reporting Drill Down • On line Inquiry Screens • Transaction Level Detail • Imaging/Document Management

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BENEFITS FOR GOV’T CONTRACTORS

CONTRACTORS LOOK FOR SOLUTIONS THAT CAN MANAGE MULTIPLE CONTRACTS AND COST POOLS. NEED TO SEPARATE INDIRECT COSTS FOR REPORTING PURPOSES

• Time and Materials

• Fixed Firm Price

• Cost Plus

INTEGRATED TIME AND EXPENSE TO FINANCIALS

WEB BASED ACCESS FOR REMOTE EMPLOYEES

EARNED VALUE MANAGEMENT CAPABILITIES

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MIXED COMMERCIAL & GOV’T REQUIREMENTS

WHAT IS KEY FOR COMPANIES DOING BOTH COMMERCIAL AND GOVERNMENT CONTRACTING?

•Consistent Accounting Practices for Both Businesses

•Allocations must be the same •Overhead, G&A, and Unallowable pools

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OPERATIONAL BENEFITS

WHAT BENEFITS SHOULD OPERATIONS & PROJECT MANAGERS RECEIVE FROM MICROSOFT DYNAMICS?

•Superior Cost Control •Real time visibility into committed costs •Immediate access to supporting documentation via document imaging

•Earned Value Management visibility

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THE DCAA AUDIT

HOW DOES MICROSOFT DYNAMICS STACK UP DURING THE AUDIT?

• Successfully completed years of DCAA audits

• Provides timely access to information

• Reduces the time required by internal staff during the audit process

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MICROSOFT INTEGRATED SOLUTIONS

• Dynamics ERP

• SharePoint

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WHAT IS MICROSOFT DYNAMICS?

• INTEGRATED FINANCIAL AND OPERATIONAL/PROJECT MANAGEMENT SOFTWARE

• FAMILIAR TO YOUR EMPLOYEES

• GOVERNMENT CONTRACTING INDUSTRIES: • Professional Services

• Contracting

• Manufacturing

• Distribution

• ACCEPTED BY DCAA

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FUNCTIONALITY PROVIDED BY DYNAMICS

•FINANCIALS

•ACCOUNTING

•FRINGE, OVERHEAD AND G&A RATE CALCULATIONS

• Cost Segregation – Allowable vs. Unallowable

•JOB COSTING

•PURCHASING & REQUISITION MGMT

•MANUFACTURING

•INVENTORY MANAGEMENT

•SALES ORDERS

•SERVICE MANAGEMENT

•CUSTOMER RELATIONSHIP MANAGEMENT

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MICROSOFT SHAREPOINT

WHAT IS MICROSOFT SHAREPOINT? A FOUNDATION FOR CONNECTED INFORMATION

• Team Collaboration

• Dashboard

• Key Performance Indicators

• Dynamics Business Portal

• Integrated with Project Server

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WHAT WILL YOU GET FROM THE INTEGRATED SOLUTION?

ORGANIZED FLOW OF INFORMATION

• Project Management

• Resource Allocation

• Financial Reporting

SEAMLESS INTEGRATION OF INFORMATION

ONE VIEW OF THE DATA

TOOLS YOUR TEAM IS FAMILIAR WITH…

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PROJECT MANAGER SUPPORT

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• WEB ACCESS TO YOUR DATA – Immediate access to Projects profitability – Maintain projects – Assign resources to projects, tasks or subtasks – Create initial and subsequent budgets – Set maximums for Projects and Tasks – Store and share Project invoices in a document

repository – Enter time remotely supporting your companies

needs: bi-weekly, semi monthly…

REPORTING VS. DASHBOARDS

Many people use the terms interchangeably

What is the purpose of a report in Government Contracting company?

• Compliance • Company Directed

What is the purpose of a dashboard? • Drive user towards decision

How do you know what the Dashboards should be? • Key Performance Issues of Company

What are KPI’s? • Key Performance Indicator

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DYNAMICS SL OVERVIEW PROJECT DASHBOARD

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• Real-time visibility into your data

• Project P&L

• Labor hours statistics

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DYNAMICS SL OVERVIEW - ASSIGN RESOURCES

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Benefits Beyond The Norm

Traditional Project Management

• On time versus original schedule estimate

• Within budget versus original cost estimate

• Within scope versus original deliverables

• Meet or exceed customer expectations

• “Best available” resource utilization

Project Management & Accounting

Reduced time to market and/or cycle time

Project revenue, cost, and profitability

Business value of services delivered

Alignment with business and client objectives

“Best fit” skills-based resource optimization

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Other Measurable Benefits

• Better Prioritization of Projects and Services It is shocking how many “projects” operate below the radar screen with no plans, controls or accountability

• Shorten Billing Cycles Better allocation of resource T&E to project schedules and invoicing, and faster resolution of billing disputes

• Minimize Revenue Leakage Eliminate errors from manual entry or redundant systems used to invoice client services

• Improved Service Agility Quicker response to sudden or unexpected changes in business priorities, competitive pressures, new technology, and economic downturns

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Bringing it All Together

A SINGLE VIEW OF OPERATIONAL DATA

• Discover the one truth for your business • Provide people access and empower them

with simple but sophisticated tools • Focus on what is important and act! • Institute the command and control you need

to meet goals

DYNAMICS SL OVERVIEW Exec Mgmt Dashboards

Real-time visibility into your data

Top 10 Customers

Year over year Sales and Margin

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DYNAMICS OVERVIEW Increased Visibility

Real-time visibility into your data

Labor statistics by Customer

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DYNAMICS OVERVIEW Web based Timecards

Online Timesheets

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DYNAMICS OVERVIEW Project Visibility

Online Project visibility – multiple levels…

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DYNAMICS OVERVIEW Project Visibility

Online Project visibility – multiple levels…

Commitments & Budgets

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DYNAMICS OVERVIEW Self Service Access

Online Project visibility – multiple levels…

Self-service – Project profitability

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DYNAMICS OVERVIEW Ability to drill into the details

Online Project visibility – multiple levels…

Self-service – Drill into the supporting details

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DEMO

MICROSOFT DYNAMICS…

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Questions & Answers…

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Thank you for attending & please complete the

evaluation forms! KELLYE JENNINGS kjennings@bdo.com GLENN ANSTEAD ganstead@raffa.com SETH ZARNY szarny@raffa.com JEREMY TARO jtaro@raffa.com