What is a Program Control analyst and do I need one? These questions are often asked by small business who might not understand the role of a Program Controller. Program (or Project) Controllers are most frequently financial managers who oversee project revenues and expenditures to ensure programs are on schedule and within budget. Program Control Analysts bridge the gap between the program manager and the accounting department and support the needs of both organizations. Program Managers typically manage the technical aspects of a program, while the accounting department manages payroll, accounts payable, accounts receivable, and compliance with generally accepted accounting principles. Program Control Analysts provide a link between the technical elements of program management and the compliance elements of cost accounting. Program control personnel generally have a business background in accounting, finance, business administration or economics which allows them to assist the program manager with decisions which are compliant with business policy and are in accordance with contract terms.
Program Controller’s Responsibilities
Program Controllers begin their analytics by developing the WBS and setting up the project in the accounting system so it is compliant with the contract reporting and invoicing requirements. They monitor, evaluate, analyze and report on the financial health of a single program or a portfolio of programs. They interpret data from the accounting system and utilize that information to meet the project management requirements for reporting and forecasting expenditures. Program controllers often prepare pricing in support of a program, a task order, or a Request for Proposal (RFP). They assist with billing, monitor cash flow, and manage days sales outstanding (DSO). Program controllers prepare the Estimate at Completion (EAC) for both internal and external planning. They monitor funding levels to ensure smooth program execution.
Why a Program Controller is Important
Program controllers work with real time data. They work with the purchasing and subcontracting departments to track accrued expenditures. Their understanding of indirect rate application allows them to utilize accrued costs, apply indirect rates, and create a true picture of current cost. The real-time data collection and analytical processes used by the Program Controller allow for effective management and decision making which influence the outcomes of a program relative to time and expenditures. Their contribution to the program is reflected in the Contractor Performance Assessment Reporting System (CPARS), under the heading of Cost Control. The CPARS evaluate areas of financial performance such as:
- Effectiveness in forecasting, managing and controlling cost
- Accuracy and timeliness of billings
- Cost savings from contractor innovation
- Adequacy of internal controls
- Review of negotiated costs compared to actual costs
Small programs may require only a part time program control analyst while a larger program may involve a whole program control department. Ultimately, experienced program control analysts play a key role in contract execution and serve to decrease risk to the contractor.
How Redstone GCI can Help
At Redstone GCI, our consultants can assist with new or existing program/project control needs. We are frequently called upon to assist in a surge capacity, during the design and setup of complex projects, or in contract closeout reconciliations. In this role, we are able to assist in a variety of ways, whether it’s filling in, adding bandwidth to your existing staff or by assisting with the development of process documentation or key controls. Our consultants are experienced with a variety of financial systems and methodologies. We can assist, regardless of the maturity level of your program control function. Whether it’s your first contract or your 50th let us help by providing a program control solution that’s right sized for your organization.
