Course Introduction/
Determine the Difference Between
Internal and External Reporting

© Dale R. Geiger 2011

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© Dale R. Geiger 2011

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Terminal Learning Objective
• Task: Determine the difference between internal
and external reporting
• Condition: You are training to become an ACE
with access to ICAM course handouts, readings,
and spreadsheet tools and awareness of
Operational Environment (OE)/Contemporary
Operational Environment (COE) variables and
actors
• Standard: with at least 80% accuracy:

• Define the 4 characteristics of accounting information
• Identify key components of GFEBS output
• Classify GFEBS reports as internal or external
© Dale R. Geiger 2011

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Cost Maturation Process
Single Use

Persistent Use

Universal Use

Estimated
Future Cost

Expected and
Actual Cost

Planned &
Actual Cost

Cost Benefit
Analysis

Continuous
Improvement

Role Based, Org
Based, Output
Based Control

Cost Informed
Decisions


Cost-Managed
Organizations

Cost-Managed
Enterprise

Cost War High
Intensity Conflict

Cost War Full
Spectrum Operations

Cost War
Insurgency
Starting here
(Some work is being done now)

© Dale R. Geiger 2011

TARGET

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Transforming the Army:
Four Requirements for Success
Need

Leadership


Status

Action

Team with ACE to create “informed” leaders
Exploit existing strong leadership capabilities

ACE

Build strong staff, strong organization
Select, develop ACEs (Asst to Comdr – Enterprise)
Design and deliver advanced training

Process
Cost Info

Modify “winning the cost war” template
as needed
Use new tools as they come online
© Dale R. Geiger 2011

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ACE Development: PCAM & ICAM
• Principles of Cost Analysis and Management
•
•
•


Targeted at entry level CP11 Personnel, Sergeants,
Lieutenants, Junior Captains
Course Length: Three Weeks
Pre-requisites: On Line Math Refresher

• Intermediate Cost Analysis and Management
•
•
•

Targeted at mid career CP11 Personnel, Staff Sergeants
and above, Senior Captains, Majors and above
Course Length: Three Weeks
Pre-requisites: On Line Math Refresher
© Dale R. Geiger 2011

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Stackable
Credentials
Based on the Financial Management Career Field

* NOTE: Stackable credentials are based on Financial Management (BC36/CP11) career field
demands for cost management, which is the Army maximum; other career fields will use a
subset of these requirements.
© Dale R. Geiger 2011

All CEs will require basic,

advanced, and master skills with
a concentration in:
Readiness – Capacity
management and force cost
analysis
Materiel – Logistics and
working capital funds cost
analysis
Human Capital – Manpower
cost analysis
Services & Infrastructure –
Services and capital asset
costing
FAs and CPs that are common to
all CEs should train to become a
master in any CE
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ICAM

• Develop advanced cost management skills
• Next step for those already fulfilling the role of
ACE or who wish to become and ACE

© Dale R. Geiger 2011

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Purpose of Course
• Develop skills in Cost Management
• Includes conference, demonstration and practical
exercises, and case study
• Emphasizes critical thinking
• Introduces Excel templates to facilitate calculations

• Introduce and apply skills in Leadership Driven
Management
• Heavy emphasis on case studies requires students to
analyze real-world scenarios.
© Dale R. Geiger 2011

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Remember Valley Forge
• Refer to the article by Ms. Matiella
• Why does the Army need to become more cost
effective?
• What is the difference between Cost Benefit
Analysis and a Cost-Managed Organization?
• How do fiscal constraints pose an “asymmetric
threat”?
• How should we respond?
© Dale R. Geiger 2011

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Program of Instruction
Overview

Week One

Week Two

Week Three

Understanding Cost

Learning the Process

Applying the Process

Cost Benefit Analysis
Cost Control Theory
CBA Examples
Org Based Control
Cost Management
Role Based Control
After Action Review
Output Based Control
Cost Management Cases Change Management

© Dale R. Geiger 2011

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What Do Accountants Do?

© Dale R. Geiger 2011

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What Do Accountants Do?
• Provide INFORMATION that is USEFUL to Decision
Makers
• Information must be RELIABLE
• Free from Bias
• Verifiable

• Information must be RELEVANT
• Will make a difference in the decision
• Timely – frequency and lag time
• Relevance is in the eye of the User
© Dale R. Geiger 2011

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What Do Accountants Do?
• Provide INFORMATION that is USEFUL to Decision
Makers
• Information must be RELIABLE
• Free from Bias
• Verifiable


• Information must be RELEVANT
• Will make a difference in the decision
• Timely – frequency and lag time
• Relevance is in the eye of the User
© Dale R. Geiger 2011

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What Do Accountants Do?
• Provide INFORMATION that is USEFUL to Decision
Makers
• Information must be RELIABLE
• Free from Bias
• Verifiable

• Information must be RELEVANT
• Will make a difference in the decision
• Timely – frequency and lag time
• Relevance is in the eye of the User
© Dale R. Geiger 2011

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What Do Accountants Do?
• Provide INFORMATION that is USEFUL to Decision
Makers
• Information must be RELIABLE
• Free from Bias

• Verifiable

• Information must be RELEVANT
• Will make a difference in the decision
• Timely – frequency and lag time
• Relevance is in the eye of the User
© Dale R. Geiger 2011

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What Do Accountants Do?
• Provide INFORMATION that is USEFUL to Decision
Makers
• Information must be RELIABLE
• Free from Bias
• Verifiable

• Information must be RELEVANT
• Will make a difference in the decision
• Timely – frequency and lag time
• Relevance is in the eye of the User
© Dale R. Geiger 2011

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What Do Accountants Do?
• Provide INFORMATION that is USEFUL to Decision
Makers

• Information must be RELIABLE
• Free from Bias
• Verifiable

• Information must be RELEVANT
• Will make a difference in the decision
• Timely – frequency and lag time
• Relevance is in the eye of the User
© Dale R. Geiger 2011

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Who are the Users?
• Users may be INTERNAL or EXTERNAL
• Internal users are:
• Managers and Leaders
• What types of Decisions might they make?
• What information might they need?

• External users are:
• Investors, Creditors, Regulators and Legislators
• What types of Decisions might they make?
• What information might they need?
© Dale R. Geiger 2011

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Who are the Users?

• Users may be INTERNAL or EXTERNAL
• Internal users are:
• Managers and Leaders
• What types of Decisions might they make?
• What information might they need?

• External users are:
• Investors, Creditors, Regulators and Legislators
• What types of Decisions might they make?
• What information might they need?
© Dale R. Geiger 2011

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Who are the Users?
• Users may be INTERNAL or EXTERNAL
• Internal users are:
• Managers and Leaders
• What types of Decisions might they make?
• What information might they need?

• External users are:
• Investors, Creditors, Regulators and Legislators
• What types of Decisions might they make?
• What information might they need?
© Dale R. Geiger 2011

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Who are the Users?
• Users may be INTERNAL or EXTERNAL
• Internal users are:
• Managers and Leaders
• What types of Decisions might they make?
• What information might they need?

• External users are:
• Investors, Creditors, Regulators, Legislators and
Citizens
• What types of Decisions might they make?
• What information might they need?
© Dale R. Geiger 2011

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External User Needs
• Examining an organization’s performance over
time demands CONSISTENCY
• Assures users that the information is prepared in
the same manner over multiple time periods

• Deciding whether to fund competing
organizations or programs demands
COMPARABILITY
• Assures that the information from all
organizations is prepared according to the same
set of principles

© Dale R. Geiger 2011

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External User Needs
• Examining an organization’s performance over
time demands CONSISTENCY
• Assures users that the information is prepared in
the same manner over multiple time periods

• Deciding whether to fund competing
organizations or programs demands
COMPARABILITY
• Assures that the information from all
organizations is prepared according to the same
set of principles
© Dale R. Geiger 2011

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External User Needs
• Examining an organization’s performance over
time demands CONSISTENCY
• Assures users that the information is prepared in
the same manner over multiple time periods

• Deciding whether to fund competing
organizations or programs demands

COMPARABILITY
• Assures that the information from all
organizations is prepared according to the same
set of principles
© Dale R. Geiger 2011

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