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THE DEPARTMENT OF THE INTERIOR
ACTIVITY BASED COST/MANAGEMENT (ABC/M) INITIATIVE INFORMATION PAPER PURPOSE: ABC/M is a tool that helps illustrate the value the Department provides to the American public. ABC/M will also help the Department improve customer service and enhance accountability to Congress and the public. Using ABC/M, the Department has broken its mission down into specific work activities to measure costs and performance. This tool will enable us to monitor and evaluate program performance/results and improve the way we do work. ABC/M DESCRIPTION: Activity Based Cost Management is a methodology that allows an organization to focus on the activities or work done that generate cost, and to analyze what influences the amount of cost, what causes cost to occur, the cost of work performed, and the outputs produced from the work done. ABC/M IMPLEMENTATION: Formal Department-wide ABC/M implementation will begin on October 5, 2003. On October 5, 2003, DOI employees will begin documenting their time, purchases, travel, training, etc. to the work activities they perform, and record the output they produce as the result of doing work. They will use the time and attendance methods/systems and financial data recording processes existing within their bureaus/Departmental offices to capture time and expenses against work activities. They will use methodologies specified by their bureaus to record outputs. Some bureaus such as the Bureau of Land Management, the Minerals Management Service, the Office of Surface Mining, the Bureau of Indian Affairs, and the Bureau of Reclamation have initiated or implemented ABC/M and have defined their own set of work activities. There are approximately 326 DOI (Department/bureau) crosscutting work activities that the bureaus and departmental offices will either use directly, or have the costs associated with bureau/ departmental office work activities captured under them. All employees will document their time, purchases, travel, training, etc. and outputs to either bureau/Departmental office work activities, or to the 326 DOI crosscutting work activities. ABC/M TRAINING: Each bureau and Departmental office will provide bureau and/or departmental office-specific training on ABC/M and on how to code time, operating expenses, and outputs to work activities. For those bureaus that have already initiated or implemented ABC/M, such training will describe any changes to bureau ABC/M operations and procedures for coding to work activities, and what remained unchanged. Bureaus and Departmental offices are providing training through a combination of classroom sessions, one-on-one focus groups, web-based presentations, cyber-seminars, and CD’s containing modules on coding time, operating expenses, and outputs to work activities, the purpose of ABC/M, and how the Bureau/Departmental office will be using ABC/M. Training will be conducted from mid-August through October 4, 2003. Contact information for Bureau/Departmental Office ABC/M Program Managers,
activity definitions, and DOI Strategic Plan measures can be found on
the DOI ABC/M Website at http://www.doi.gov/training/abc. |
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