Financing & Budgeting in the Public Sector PP Instructor: Trebor Negron Unit 6 Seminar 6/24/12 7:00 – 8:00 PM, EST

Monitor and Control Program Financials  In order to prevent program cost overruns, the financials for the program have to be vigilantly monitored and controlled.  Once the initial funding is granted to the program and expenses are being paid, the monitoring and controlling of the financial process begins for the program.  Metrics are used to determine if the financials are tracking according to plan.

 If there are any discrepancies, they are investigated to determine how the program can get back on track:  Program financial plan  Program management plan  Program budget baseline  Contracts Monitor and Control Program Financials

Change Requests  There may be change requests that have a financial impact. The Governance Committee reviews all requests to determine how they will be managed.  At the end of this process you would have completed: Contract payments Component budgets closed Program budget baseline updates Approved change requests Estimate at completion Program management plan updates Corrective actions Program budget closed

Maximize Output  To achieve the required output for this process the following tools and techniques can be used:  Cost change management system  Contract cost management  Status reviews  Cost forecasting techniques  Program operational cost analysis  Earned value management

Financial Reporting Standard  These standards aren’t easy to apply to public sector program management because reports on costs are typically developed by audit agencies and not he programs themselves. Hence, costs are not associated with actual performance.  This process needs to be changed so that program managers report actual costs to compare to planned costs, or budgeted costs of work performed, as in earned value analysis.  Cost variance indicators should be available at gateway reviews to track costs along with schedule and overall progress.

Questions/Concerns?