Project Planning


Determine Budget Control Process

To ensure the financial aspects of the project are managed in line with company policy
  • Existing Budget processes
    1. Identify Budget and Expenditure processes that may exist in the organisation and in other projects
    2. Select a process
    3. Modify the process if necessary to suit the project
    4. Gain approval from the Sponsor for the process
  • Approved process for budget control

As for Purchasing, there will probably be company policies around how a budget is established, and expenditure managed. You will probably adopt the same process as used by other projects. In particular look at:

  • The process for gaining budget approval
  • What is included in project budgets e.g. is the time spent by business resources included?
  • How long after approval can expenditure take place
  • What are the authorisation levels and limits
  • What reporting is required
  • Is there any reconciliation between different sets of records required
  • Is a project cash flow projection required
  • Who is responsible for ensuring there are no discrepancies in the records

As with Procurement, a meeting with the person responsible in the finance area for project expenditure may avoid mistakes down the line.

Setting up a budget and managing project expenditure White paper on managing the financial aspects of a project
Cost Management User Guide Whilst this is primarily focused on expenditure, there are some points that are useful in deciding how the budget will be set up and managed

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