Financial management

EspaƱol - Italiano

Financial management should:

  • estimate the cost of achieving the objectives;
  • assess the viability of achieving the objectives;
  • secure funds and manage their release throughout the life cycle;
  • set up and run financial systems;
  • monitor and control expenditure.
Indicators Level 2 attributes

 

This financial management capability summarises the capabilities for the functions that make up financial management.

This summary capability will typically be more relevant for projects that are entirely funded from a single source and use existing financial control systems.

The more detailed subsidiary capabilities should be used where:

Estimate costs

Top down estimates are performed early in the life cycle and refined bottom up as specifications become available.

Investment appraisal

Simple appraisal techniques are documented in the business case.

Secure funding

Routine sources of funding are confirmed.

Develop budget

An overall budget for the work is documented and progress reports track against this budget.

Financial control

Actual costs are accurate and used to track against budget.

 
Indicators Level 3 attributes
Estimate costs

Cost estimates are reviewed throughout the life cycle and plans updated.

Investment appraisal

Detailed quantitative techniques are used to assess the viability of the work.

Secure funding

A variety of funding mechanisms is considered and the optimum approach is chosen.

Develop budget

Separate budgets are identified for different aspects of the work. Contingencies and management reserves are used.

Financial control

Financial systems are able to track actual costs against categories of cost as defined in a cost breakdown structure.

 

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Financial management

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