Task: Create Annual Program Budget
Create Annual Program Budget
The process of creating the annual program budget for review by the respective IT Governance Board.
Disciplines: Business Segment Portfolio ManagementPortfolio Management

Purpose

To create a document for gaining approval for the budget of a program from their respective IT Governance Board.

Relationships

Main Description

On an annual basis, a budget will be created for each program and agency within ISD. The Business Segment Director or Program Manager will be responsible for creating this budget, which will be presented to their respective IT Governance Board for approval of the next fiscal year budget. This same budget, once approved, will be used for review of any modifications needed throughout the year.

Steps

Add current in-process projects

The spreadsheet is separated into 3 sections.

 

The first third of the spreadsheet, you will list all projects that you are going to complete or start in the upcoming fiscal year.

 

The second third will have the same list of projects as the top third; however, in this section, you will indicate the amount of the project expenses that will need to come from the operating budget instead of from sources outside of the operating budget (i.e. other agency investments, grants, etc.). This second third of the budget gives the governance board the amount they will need to find within their operating budget to fund the portfolio of projects being proposed.

 

The last third of the spreadsheet contains the projects, and their estimates, that are not going to be funded. These are included in case additional funding is found or the Governance Board decide to swap out a funded project for one of these.

 

Utilizing the PPM Tool, determine which projects currently in-flight will not be completed by the end of the current fiscal year and add them to the worksheet. Itemize the needed budget for the following fiscal year.
Add new projects from the Opportunity Map that the customer has indicated they want completed or started next fiscal year
You should have already completed the initial draft of your opportunity map. This will indicate which projects your customer wants to support for the next fiscal year. You will need to get high level estimates for these projects and then add them to your spreadsheet.
Determine projects that will have outside funding
Based on input from the customers and governance board members, determine which projects have outside funding and deduct those amounts from the total project budget and put the remaining amount in the second third of the spreadsheet. This will be the amount that the Governance Board will need to find funding to complete these projects.
Add unfunded projects

Based on input from the customers and Governance Board members, place the projects and their estimates in the last third of the spreadsheet. These are there in case additional funding is found or the Governance Board would like to swap out a funded project for one of these.

Gain Approval for the Budget
Present the proposed budget to the respective IT Governance Board to gain approval and make any modifications based on that approval. This typically happens at the IT Governance Board that is held in January or February of each year.
Forward budget to Portfolio Administrator
Forward the approved budget to your Portfolio Administrator. This should be done initially and any time the budget changes.
Update PPM Tool
The Portfolio Administrator will go into the PPM Tool and update each project with their approved budget.

Alternatives

None, these are required for all programs and agencies.