Corrective Action Plan as of 12/10/07

Processing of Vendor Invoices

Issue: Projects may not post all vendor invoices into the Project Management System, thereby distorting cost performance information and making the monthly review process somewhat non-value added.
Objective: Need to implement specific control procedures that will improve the current process ensuring that vendor invoices get posted in PMS.
Terminology Run Test Policy Guide Book / Std Operating Impl Est C Measure Final
Ref No Describe Action Item Scope of Action Item Champion Core Team / POC Pilot? Paper? Training? Procedure? Date Date of Success Resolution

Immediate Action Items

VS.1 Develop and Distribute monthly General Ledger Reports on a System Request required PMO Director - Six Sigma Team Yes - run No - this is Yes - develop Yes - reference TBD - TBD - 30 All projects are TBD - 3 months
project by project basis to all Project Managers so that they covering all IT projects setup in Marshall Burley and FRS several test of below the training slides this new activity Depends days after using the new after
can review / reconcile vendor invoices the General Ledger Programmer program before policy level and conduct in EVM upon System report to validate implementation
putting into live meeting Procedure 9 System Request is vendor invoices in date
production Request 100% PMS.
complete
VS.2 Payable processing is revised to include formal distribution of Financial Accounting Control PMO Director - Six Sigma Team Not applicable No No No 2/1/2008 4/1/2008 All projects are
invoice copies to all IT Project Planners and IT Project Managers Marshall Burley and PMO receiving copies of
vendor invoices

VS.3 All projects have a Project Planner assigned and trained in the All IT Projects that should be PMO Director - Six Sigma Team Not applicable No Yes - update Yes - update 3/1/2008 5/1/2008 All projects have a
posting of vendor invoices to the Project Management System using PMS Marshall Burley and PMO PMS Training PMS SOP 11 trained planner
Modules assigned

Long Term Solutions

VL.1 Develop an automated interface comparison on an invoice by All IT Projects setup in the PMO Director - Six Sigma Team Yes - run No Yes - will need Yes - will need TBD TBD All projects are
invoice number basis between the General Ledger and the General Ledger System Marshall Burley and PMO several test to revise to update EVM using the web
Project Management System. training SOP based tool

Glossary of Terms
EVM Earned Value Management
FRS Financial Reporting System
IT Information Technology
PMO Program Management Office
PMS Project Management System
POC Point of Contact
TBD To Be Determined

Cost Data Integrity Project 1

 Corrective Action Plan as of 12/10/07
Processing of Timesheets
Issue: Employees may not submit timesheets into the Project Management System, thereby distorting cost performance information and making the monthly review process somewhat non-value added.
Objective: Need to implement specific control procedures that will improve the current process ensuring that employees enter timesheets in PMS with each pay cycle.
Run Test Policy Guide Book / Std Operating Impl Est C Measure Final
Ref No Describe Action Item Scope of Action Item Champion Core Team / POC Pilot? Paper? Training? Procedure? Date Date of Success Resolution

Immediate Action Items

TS.1 All Project Managers approve timesheets for all personnel All IT Projects that use PMS PMO Director - Marshall Six Sigma Team and No No No Yes - update 5/1/2008 6/1/2008 All Project Managers
assigned to the project Burley & Chief Project Managers SOP's are approving
Information Officer timesheets

TS.2 All employees assigned to a project must complete All non-contract labor personnel PMO Director - Marshall Six Sigma Team and No No Yes - need to No 4/1/2008 5/1/2008 All assigned
mandatory timesheet training with two weeks of being assigned to an IT project Burley & Chief Project Managers revise training employees are
assigned to a project Information Officer and Guide entering timesheets

Long Term Solutions

TL.1 All non-contract personnel PMO Director - Marshall Six Sigma Team and Yes No No Yes - update TBD TBD All assigned
Develop an automated email notification message each time assigned to IT projects Burley PMS System SOP's once employees are
an employee fails to enter their timesheet within a 24 hour Administrators implemented entering timesheets
period from the last date within each two week pay cycle.

Cost Data Integrity Project 2