Monitoring And Control Project Finances - 1554 Words

Introduction The purpose of this proposal is to identify issues that detract from the organization’s ability to optimally monitor and control project finances, make recommendations and describe how the recommendations will improve monitoring and control of project finances. The identification of areas that require new approaches have been discovered by examining historical project documents, gathering information from project finance specialist and interviews with project managers. The three main areas that will allow for better control of project finances are â€Å"measuring, evaluating, and correcting† (Kerzner, 2013). Measuring will allow for better monitoring of project finances, evaluating what was measured allows for better control over†¦show more content†¦This was not so much of a lack of oversight as it was a failure in tracking expenditures due to delays and the timelessness of issuing a new or amending project purchase orders. Measuring project finances with dat a old data while the project is ongoing is not an accurate measure of success and the lack of preliminary finance data from an ongoing project is difficult under the current reporting system. Project finance reporting is inadequate and historically results in projects going over budget when project schedules are at risk. Project managers report project finances quarterly or in most cases at the end of the project. The reporting of a project at the end of a project or in the case of a large project on a quarterly basis gives very little chance of corrective actions to be taken and may result in the project being rebaselined. Evaluating Implementing changes to the way project finances are reported so data can be more effectively analyzed and trends recognized that have an adverse effect on the project. In the past projects were evaluated by the project management office using outdated information reported by the project manager, however due to the lag between the actual occurrence of a problem and the reported data reflecting a problem exists often meant the