Financial management processes and procedures help to guide a project and

Financial management processes and procedures help to

This preview shows page 10 - 13 out of 19 pages.

Financial management processes and procedures help to guide a project and outline how money is used and managed.Financial management processes and procedures may include:Approval processesCommunication and reporting processesFinancial authorisations and delegationsInvoice proceduresOrganisational chart of accounts links.These financial management processes and procedures should be agreed upon by everyone working within a project.In order to monitor the actual expenditure against your project budget you may need to create a checklist to assist you. You can use an existing template and/or a program to highlight the likely overruns.Before the monitoring process, what needs to be determined?Before starting the monitoring process, determine:What item(s) need to be monitored?Who is responsible for this?How will the monitoring be done?What should you look for?What date will the monitoring start?What is the proposed end date?BSBPMG514-V2018.1-20180901 © Canterbury Technical Institute - 2018 |Page 10 of 19
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Canterbury Technical InstituteCRICOS Code – 02938M RTO No: 31645What is a critical path schedule and how can it be used to monitor expenditure?For the on-going monitoring of your finances, you could use a critical path schedule; a ‘living’document that can be used to check your actual expenditure against your budget. There aremany templates that are available for you to create your critical path schedule; choose one that fits your project and organisation. Use you critical path schedule as the deadlines approach to assess how your project is doing – in terms of finances. It can be altered when necessary; the previous issue should be destroyed if changes are ever made. What is a KPI?You may wish to use KPIs in the assessment of your project expenditures. These KPIs will tell you whether your project is being successful and, if so, to what degree. They will enable you to assess the performance of your project in terms of the achievement of the desired objectives. There are no right or wrong KPIs; they will depend on your project.Give examples of KPIs that may be used in the assessment of project expenditures.Examples of KPIs that may be used in the assessment of project expenditures may include:Deviations from the planned budgetDeviations from the planned project schedule Variations to the planned hours of workActual cost of work performedCost of any approved requirements that are not yet implementedDeviations from the cost of managing your nominated processCost of the scope items without prioritised requirementsPercentage of re-working costs that are attributable to theproject scope.BSBPMG514-V2018.1-20180901 © Canterbury Technical Institute - 2018 |Page 11 of 19
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Canterbury Technical InstituteCRICOS Code – 02938M RTO No: 31645Explain how you would monitor the actual expenditure within your example project.
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