Budget/Forecast/Actual & “Proforma”

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1st Qtr 2nd Qtr 3rd Qtr 4th Qtr

Budget

Forecast/Actual

Prior Forecast

Each month we review deployments (Dashboards & Financial Forecasts) and:1) Update Proforma (Forecast)2) Consider need for Budget adjustment (extraordinary events, changes to contracts, etc.)3) If Budget(s) changed, reflect in individual’s performance objectives

Budgets established form Business Planning process used as basis for Annual Operating Plan (AOP) AND Incentive Compensation

Proforma updated each month to reflect latest information form each deployment

Need To Communicate Use Of Budget, Proforma & Relationship To ICNeed To Communicate Use Of Budget, Proforma & Relationship To ICNeed To Communicate Use Of Budget, Proforma & Relationship To ICNeed To Communicate Use Of Budget, Proforma & Relationship To IC

For 2005 this is the Proforma as presented in Philadelphia in December - with the exception of ALO which was adjusted for “rightsizing”

Prior Month’s Forecast – ECs should discuss changes to Forecast

Dashboard Addition …

Budget – Set at beginning of year.

Forecasts updated monthly.

Calculate variances form Budget and prior forecasts to show how deployment / forecast has evolved over time ..

Highlighting Deployment / Forecast ChangesHighlighting Deployment / Forecast ChangesHighlighting Deployment / Forecast ChangesHighlighting Deployment / Forecast Changes

SSA Financial Reporting Process

Update Deployment

Forecast Assumptions/

Drivers

Update Wind2 Forecast

P&LsWind2

Dashboard

Produce & Distribute

P&Ls, updated Proforma

Monthly Financial Review

Conference Calls

FM, EC, DMFM, EC, DM FM, ClaudiaFM, Claudia ClaudiaClaudia AllAll

FinancialForecast

Notes:• Need to keep time between Forecast update and monthly meeting short so things don’t shift too much and P&L

is outdated.• Add simple Revenue summary Tab to Dashboard to show budget, forecast and change to forecast by Qtr

through 2006• Schedule may need to be backwards from Monthly Meeting Date.

Update Proforma as

needed

KimKim

Workday 10-12 Workday 12-13

Change Budget(

s)?

Written communication from DN to

EC(s), Kim&Jim

Yes

No

End

Monthly Deployment Review Calendar

Step Who Activity Workday

1. NWA Copy “Act/Fore” to “Prior Fore” 1-6 (After Monthly Deployment Review Meeting)

2. NWA Update Labor – Run Effective Cost program 7-10 (after all time-sheets collected)

3. NWA Update cash (run Kim’s cash by project/month – update Wind2 “Actual Revenue”).

1-10 (anytime after Step 1 above)

4. NWA Send P&Ls to Alex & Katha 7-11 (anytime after step 1, 2 & 3 above are completed).

5. FMs Review accounts with ECs – updates to NWA 11-14

6. NWA Update Forecast in WInd2 - Final P&Ls to FMs 14-15

7. ECs ECs e-Mail Dashboard files to JA 15

8. JA Run & Review TPS Report – send to ECs –package to Mgt.

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9. ECs,et al Monthly Deployment Review Meetings 18-20

10. KS Update Pro Forma if appropriate 20-21