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.