A recent McKinsey report estimates that 98 percent of large-scale projects face cost overruns or delays, and the average cost increase is 80 percent. With the complexity involved for such projects, it’s far too easy for stakeholders to discover that their budgets are underwater only when it’s far too late to make a difference. But suppose there was a way to reliably predict when a project was going to finish, and how much it was going to cost, at less than 20% of the way in? This is the extraordinary, under-hyped ability of Earned Value Management (EVM).
Learn how EcoSys EPC is used by government agencies and contractors for Program Financial Management, including Budgeting, Funds Management, Project Cost Management and Earned Value Management (EVM). An EVM Engine, EVM Reporting tool, and Cost and Schedule Integration platform, EcoSys provides EVM capabilities fully compliant with the 32 ANSI 748 Criteria.
The American Reinvestment and Recovery Act (ARRA) of 2009 was a $787 billion economic stimulus package intended to jumpstart the economy. Learn the role Financial Management played in this endeavor where macro and micro-level analysis and visualization in data collection was necessary to provide an unprecedented level of transparency and accountability for all aspects of the project.
AICPA’s SOP 98-1, “Accounting for the Costs of Computer Software Developed or Obtained for Internal Use,” set a standard in how finance departments account for the adventures of their IT department. However, since labor capitalization is still open to subjective interpretation, the result has been non-effective capitalization processes at an unnecessary cost. This paper discusses the current methods being used and determines how they can be improved upon to make the capitalization process as effective as it can be.