Name of Best Practice Financial Management Process Description File Name BiSL_BP026 Date modified dd-mm-yyyy Description of contents Type of document Example BiSL Processes Financial Management Comments

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Nov 10, 2013 (4 years and 3 days ago)

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Name of Best Practice

Financial Management Process Description

File Name

BiSL_BP026

Date modified

dd
-
mm
-
yyyy

Description of contents


Type of document

Example

BiSL Processes

Financial Management


Comments











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12





Financial Management Process Description


Example


Place

Place

Date

dd
-
mmm
-
yyyy

Author

Author

Status

Status





ASL BiSL Foundation




P.O. Box
9769

35
0
6

GT

Utrecht

The Netherlands



T

+31

(0)30

753 1424

F

+31

(0)30

755 1502

I
www.aslbislfoundation.org













































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Summary

Objective



The purpose of the process is to provide, maintain, and monitor an information

provision system that is cost
-
effective from a financial and operational
management perspective, as well as cost
-
effective allocation of ICT
resources for su
pport and execution of the organization’s business
processes for information systems.

Reason

Reasons for starting the Financial Management process are:



To answer the question of whether the change in information provision
would bring adequate benefits fro
m a business point of view



Justification from the ICT service provider to the client/budget owner


Target Group

The target group for the financial management process consists of:



the application manager of the application in this information provision



the

business information manager responsible for financial management



the budget owner



the IT infrastructure managers for the application in this information provision

Scope



The process makes, maintains, and monitors the cost
-
effectiveness of the
information

provision

system

Result

The output from this process has the following applications, among others:



The annual financial plan



Budget reporting



Financial frameworks











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Contents

1

Financial management process

6

1.1

Objective

6

1.2

Reason (Trigger)

6

1.3

Target Group

6

1.4

Scope (activiti
es)

6

1.5

Result

6

2

Process Description

7

2.1

Process diagram

7

2.2

Process Description

8















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Versio
n Management


Version

Date

Author

Description

































Distribution List


Version

Date

To






























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1

Financial management process

1.1

Objective

The purpose of the process is to provide, maintain, and monitor
an in
formation
provision system

that is cost
-
effective from a financial and operational management

perspective, as well as cost
-
effective allocation of ICT resources for support and
execution of the organization’s business processes for information provision.

1.2

R
eason (Trigger)

Reasons for starting the Financial Management process are:



To answer the question of whether the change in information provision would
bring adequate benefits from a business point of view



Justification from the ICT service provider to the
client/budget owner




To receive the strategy/portfolio (trigger for Cost Planning subprocess)



To receive invoices (trigger for Cost Control subprocess)



To receive evaluations (trigger for Cost Evaluation subprocess)

1.3

Target Group

The target group for the fi
nancial management process consists of:



the application manager of the application in this information provision



the business information manager responsible for financial management



the budget owner



the IT infrastructure managers for the application in th
is information provision


The application and infrastructure managers are involved because they provide
the input for the invoices.

The budget owner is involved because s/he receives
periodic reporting on the investments and returns.

1.4

Scope (activities)

The

process makes, maintains, and monitors the cost
-
effectiveness of the information

provision system.

This pertains to the cost
-
effectiveness of the information system

as well as execution of business information management itself.

1.5

Result

Results of the fina
ncial management process are:



Annual financial plan



Management information



Budget reporting



Financial frameworks



Key figures



Issues/problems










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2

Process Description

2.1

Process diagram




Cost planning

Cost control

All processes

Strategic

processes

ICT Supplier

O
ther

management

proc
esses

Change

management


User organization

O
ther management

processes

Costs/profits

(projected)

Key figures

Budgets/benefits
(projected)


Strategy/

portfolio

Projected costs/profits

Annual financial plan

Escalation

Invoices

Realization costs

Change

management

All Processes

Financial frameworks

Progress/realization

Financial frameworks

Cost evaluation

Evaluations

Key figures

Amend key figures

Key figu
res

Demand


management

Strategic


processes

Evaluations

Financial

status

Key figures

Resources/

demand

Annual

financial plan

User organization

Budget reporting

User organization

Benefits attained

Costs/profits

(projected)

Projected costs/

profits

Version
:

16
-
01
-
2006

User organization

Management

information

D
esired budget

Management information


2.2

Process Description


Input Data

Subprocess

Output Data

Process/Data

Data F
low

Subprocess:

Cost planning

Data Flow

Process/Data

User
organization

Budget/benefits (projected).

The user organization indicates
the available budget and the
projected
benefits
.

This subprocess uses the input data to determine the amount of
budget need
ed over the coming budget period (typically the next
calendar year).

The request for this budget is submitted to the user organization.

On the basis of this request, the user organization will allocate a budget.

An annual financial plan can then be drawn
up on the basis of the
allocated budget and the other input data.

This annual financial plan includes the projected costs and
profits
,
which are recorded in an entity set.


This process is triggered as soon as the budgets for the next budget
period need to

be drawn up.

This trigger may originate from the strategic

processes, or it can even simply be given once a certain date is reached.



Desired budget.

This process prompts the user
organization to release budget
and indicate corresponding
benefits
.

User

o
rganization

Process:

“Strategic
processes”

p瑲慴agy/m潲瑦潬i漮

The strategic processes provided

瑨t⁳瑲慴agy⁦潲oi湦潲o慴a潮
灲潶isi潮K

䵡湡来m敮琠䥮f潲o慴a潮K

T桥⁦i湡湣i慬慮慧敭敮琠
i湦潲o慴a潮

is⁦潲o慲摥搠瑯t瑨t
潴o敲慮慧敭敮琠tr潣敳s敳K

mr潣敳s:

“Management

processes”

mr潣敳s:

“Other
m慮慧敭敮琠
processes”

䵡湡来m敮琠䥮f潲o慴a潮K

䥮f潲m慴a潮渺



灬a湮i湧 慮搠瑩m敬i湥s



摥m慮搬dr敳潵rc敳Ⱐ,n搠
煵ality⁲敱畩r敭敮瑳



慧r敥m敮瑳⁷ 瑨⁳異pli敲

A湮畡l⁦i湡湣i慬 灬慮
.

T桩s⁩s⁩湰u琠t潲⁴桥oc潳瑳⽰/潦i瑳

r潪散瑥t)⁥ tity⁳整e

䑡瑡
:

“Costs/
灲潦i瑳

(projected)”

mr潣敳s:

“Change
management”

剥o潵rc敳⽤/m慮d
K

䍨慮来慮慧敭敮琠will
灲潶i摥 i湦潲o慴a潮 ⁴ e
摥m慮搠d潲⁦i湡湣i慬⁲敳潵rc敳K

A湮畡l⁦i湡湣i慬 灬慮

䍯C瑳⁡牥潮i瑯牥搠畳in朠g桥
慮湵慬⁦in慮ci慬
灬a渮

p畢灲潣敳s:

“Cost control”

䑡瑡
:

hey⁦i杵r敳

hey⁦i杵r敳
K

T桥 key⁦i杵r敳⁥湴nty⁳整⁩s
c潮s畬瑥搮



䑡瑡
:

䍯C瑳/
灲潦i瑳

(灲潪散瑥t)

mr潪散瑥t⁣潳瑳⽰牯/i瑳
K

T桥⁥ 瑩ty⁳整e摥liv敲e⁴ 攠
灲潪散瑥t⁣潳瑳⁡ 搠
灲潦i瑳
K












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Process/Data

Data Flow

Su
bprocess:

Cost control

Data Flow

Process/Data

Subprocess:

“Cost planning”

A湮畡l⁦i湡湣i慬 灬慮
K

The projected costs are retrieved

from⁨ r攮

T桩s⁳畢灲潣敳s⁵ 敳⁴ 攠i湰畴u瑯tm潮i瑯爠t桥⁣潳瑳⁡c瑵tlly i湣畲u敤
慮搠d整⁴ 敭 f⁡ 慩湳琠瑨攠ei湡湣i慬 灬慮
K

䡥e攬e瑨攠er潪散瑥搠d潳瑳
晲潭⁴ 攠ei湡湣i慬⁰ 慮)⁡牥 com灡r敤⁴
瑨t⁣潳瑳⁡ 瑵慬ly i湣畲u敤K

The results of this co浰arison are used to draft the financial fra浥work

慮搠牥灯r瑳 ⁳灥cific⁣桡湧敳⁡湤渠nh攠e畤g整ei渠来湥ralK

p畢灲潣敳s⁨ s′ ki湤s

潦 瑲i杧敲e:

T桥⁲敧畬慲⁴ai杧敲⁩s⁡ 灥ri潤ic
m潮瑨ty) invoic攠elow⁦r潭⁴ 攠e䍔
s異灬i敲e

The other trigger would be an escalation from within the “Change
Management” process.

bsc慬慴io渠ns⁥湡c瑥搠wh敮⁴桥⁰牥 cri扥搠
fram敷潲o⁩s⁥ c敥摥搠睩t桩渠瑨t p
r潣敳sK

ci湡湣i慬⁦ram敷潲o
K

䡥e攬e瑨攠⡰潳si扬y⁵灤慴敤)
fi湡湣ial⁦r慭敷潲os⁡牥
f潲o慲摥搠d漠瑨t⁣h慮g攠
m慮慧敭敮琠tr潣敳sK

mr潣敳s:

“Change
management”

mr潣敳s:

“Change
management”

bsc慬慴i潮
慤 桯c⁴物 来r)

䍨慮来慮慧敭敮琠will
i湩瑩a瑥ta渠nsc慬慴
i潮 if⁴ 攠
fram敷潲o⁩s⁥ c敥摥搮

剥慬iz慴i潮 灲潧p敳sK

T桥⁩湶潩c敳⁡牥⁵ 敤 瑯t
灲潶i摥 愠aro杲敳s⁲数潲琠o漠o桥
c桡湧e慮慧敭敮琠tr潣敳sK

mr潣敳s:

“Change
management”

䥃f⁓異pli敲


䥮f潩c敳
s瑡td慲搠a敲楯摩c
瑲i杧敲e
K

T桥⁣潳瑳⁡ 瑵tlly i湣畲u敤 慲攠
inv潩ce搠dy⁴桥⁉䍔⁳異plierK

B畤来琠牥灯r瑩湧
K

l渠n桥 扡sis ⁴ 攠e湶潩cesⰠ
r数潲瑩湧 is⁰牯 id敤⁴漠oh攠
扵摧整esyst敭 湥r 潮⁡
m潮瑨ty⁢慳isK

啳敲e
潲条oiz慴a潮

mr潣敳s:

“All
processes”

剥慬iz慴i潮⁣潳瑳
K

䡥e攬e瑨攠e潳瑳 ⁲畮ni湧 t桥
B䥍f灲潣敳s敳
瑨tms敬v敳 慲攠
i湤ic慴a搮

ci湡湣i慬⁦ram敷潲o
K

T桥⁦i湡湣i慬⁦ram敷潲os⁦or
r畮湩湧⁴桥⁰ 潣敳s敳
瑨tms敬v敳⁡牥⁦潲w慲摥搠d漠oll
灲潣敳s敳K

mr潣敳s:

“All
processes”










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Process/Data

Data Flow

Subprocess:

Cost evaluation

Data Flow

Process/Data

Process:

“A
ll
processes”

bv慬u慴a潮s
K

T桥⁰牯 敳s敳⁦潲o慲搠瑨攠
敶alu慴a潮s⁦潲⁴桥o
im灬敭敮瑡ti潮⁣潳瑳K

T桩s⁳畢灲潣敳s⁣潮摵c瑳 慮⁥val畡瑩o渠nf⁴ e⁣潳瑳⁡湤⁢敮敦i瑳渠
瑨t⁢慳is ⁴ 攠
扥n敦i瑳

慴a慩n敤⁡湤 敶慬u慴a潮s
i湣l畤i湧⁣潳瑳)K

T桩s 琠tnly involv敳
evalu慴ao湳⁦潲
瑨t⁣潳瑳 )⁉䍔Ⱐ扵 慬s漠⡴桥
c潳瑳 )⁥ 散畴u湧⁴ 攠e畳i湥ss⁩湦潲o慴a潮慮慧敭敮琠tr潣敳s敳
瑨tms敬v敳K

T桥 key⁦i杵r敳ay 湥e搠d漠o攠慤j畳瑥t⁡ 瑥爠瑨ts 敶慬畡瑩潮K

The evaluations provided 批⁡ll of the processes can be used to b
ring

iss略s爠灲潢l敭
s

瑯⁴桥⁦潲攬ewhic栠慲e⁴桥渠n数潲瑥搠瑯d摥d慮搠
m慮慧敭敮琮


T桥⁴物 来r⁦潲⁴ois⁳畢灲潣敳s⁩s 琠潢vio畳K

䥴⁩s⁡ 杯o搠d摥a⁴ ⁲u渠nhis s畢灲潣敳s⁡ 瑥爠敡t栠h敬iv敲y
(瑲慮si瑩潮)K

bv慬u慴a潮sK

bv慬u慴a潮⁲敳ul瑳⁡牥
f潲o慲摥搠dro
m⁨ r攠e漠oem慮搠
m慮慧敭敮琮

mr潣敳s:

“Demand
management”

啳敲e
潲条oiz慴a潮

B敮敦i瑳⁡ 瑡i湥d
K

䥮f潲摥o 瑯tevalu慴a 睨整桥r⁴ 攠
灲潪散瑥t⁢敮敦i瑳 w敲攠e渠n慣琠
慴aai湥搬d瑨攠es敲e条niz慴i潮
睩ll⁣潮摵c琠t渠nval畡tio渠nf
瑨ts攠e敮敦i瑳K

ci湡湣i慬⁳瑡t畳
K

T桥⁦i湡湣i慬⁳瑡t畳 is
f潲o慲摥搠d漠瑨t⁳瑲慴敧ic
灲潣敳s敳K

mr潣敳s:

“Strategic
processes”

䑡瑡
:

“Costs/
灲潦i瑳

(projected)”

mr潪散瑥t⁣潳瑳⁡湤
灲潦i瑳
K

p敲e敳⁡ ⁩湰畴⁦潲⁣om灡ris潮
with the actual costs and
profits
K

Am敮搠dey⁦i杵r敳
K

䥦⁴ 攠ev慬
畡ti潮畳瑩fi敳
慭敮摩湧⁴桥ey⁦i杵r敳Ⱐt桥渠
瑨ts⁩s⁲e灯r瑥搠d漠瑨t hey
ci杵r敳⁥湴nty⁳e琮

䑡瑡
:

“Key
figures”










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Data
:

“Key
figures”

hey⁦i杵r敳
K

䥦⁡ 灬ic慢l攬ekey⁦i杵r敳⁡ 攠
慭敮摥搠d慳e搠dn⁴ e⁣潳琠
敶alu慴a潮K

T桥ewey⁦ig畲敳
瑨t渠扥c潭攠e湰u
琠t潲⁦畴ur攠
敶alu慴a潮sK













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