Projects, programmes and portfolios are dependent on the input of people, material and money. These input constraints include money, Finance (Practice 7) and (human and other) Resources (Practice 8). Often, acquiring resources requires Procurement (Practice 9).
The Finance (Practice 7) competence element enable the individual to ensure that enough financial resources are provided to the project/programme/portfolio at any time, that the financial targets of the project/programme/portfolio can be met and that the financial status is monitored, reported and properly used for adequate management of financial resources.
- Determine the project/programme/portfolio funding and financing strategy
- Determine and establish the project/programme/portfolio budget
- Develop, establish and govern a funding and financial management framework
- Distribute project/programme/portfolio funds based on the needs of components and funding conditions
- Provide reports to funding and financing bodies
- Select the estimating methods to be used.
- Set up a cost structure and identify cost categories.
- Produce a realistic cost summary.
- Obtain approval for the budget.
- Develop different budget scenarios.
- Ensure the necessary reserves are made available.
- Produce a cash flow overview.
- Develop a financing strategy for the project/programme/portfolio.
- Identify the possible sources to acquire funds from.
- Act according to the financial decision making processes.
- Work together with potential sponsors in order to acquire funds.
Chapter 4 : Develop, establish and maintain a financial management and reporting system for the project
- Link the project/programme/portfolio costs to the organizations cost structure.
- Determine the management processes for the finances.
- Decide which financial indicators you are going to use.
- Develop workable reports.
Chapter 5 : Monitor project financials in order to identify and correct deviations from the project plan
- Produce cost reports.
- Analyze and explain financial situations.
- Make use of performance indicators.
Chinwi Mgbere is the President of Project Managers Development Association of Nigeria (PMDAN), Member Association of the International Project Management Association (IPMA), Certified Projects Director (IPMA Level A), National First Assessor of the IPMA 4 Level Certification System for the PMDAN Certification Body. He has taught various disciplines at Nazarbayev University School of Engineering
Chinwi Mgbere has more than 24 years of experience including extensive international experience in managing projects, portfolios of projects and programs.
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