Guideline on Common Financial Management Business Process 1.1 – Manage Planning And Budgeting
Long description for image: Figure 1. Manage Planning and Budgeting – Level 2 Process Flow
The figure is a process flow diagram consisting of subprocesses, connectors, and inputs and outputs. The subprocesses are grouped into subprocess groups.
This diagram depicts the Level 2 process flow for Business Process 1.1 – Manage Planning and Budgeting. This business process consists of five subprocess groups and 11 subprocesses.
The five subprocess groups are:
- Develop Notional Budget Allocations;
- Develop Revenue, Operating and Transfer Payment Plans and Budgets;
- Develop Investment Plan and Budget;
- Develop Project Plan and Budget; and
- Consolidate and Approve Plans and Budgets.
The Manage Planning and Budgeting business process starts with a connector from the Expenditure Management Cycle, which is outside the scope of the Manage Planning and Budgeting business process. The Expenditure Management Cycle provides two inputs to the Manage Planning and Budgeting business process. The first input is labelled “Annual Reference Level Update,” and the second input is labelled “Prior-year plans and results.”
The flow advances to the Develop Notional Budget Allocations subprocess group, which consists of Subprocess 1.1.1 – Develop Notional Budget Allocations.
The flow continues to two subprocess groups, which must be completed concurrently. The two subprocess groups are:
- Develop Revenue, Operating and Transfer Payment Plans and Budgets; and
- Develop Investment Plan and Budget.
The Develop Revenue, Operating and Transfer Payment Plans and Budgets subprocess group has four subprocesses. The flow begins with Subprocess 1.1.2 – Conduct Operational Planning, which is outside the scope of the Manage Planning and Budgeting business process. The flow advances to three subprocesses that must be completed concurrently. The three subprocesses are:
- Subprocess 1.1.3 – Develop Revenue Budget;
- Subprocess 1.1.4 – Develop Operating Budget; and
- Subprocess 1.1.5 – Develop Transfer Payment Budget.
The Develop Investment Plan and Budget subprocess group consists of four subprocesses. The subprocess group begins with three subprocesses that must be completed concurrently. The three subprocesses are:
- Subprocess 1.1.7 – Conduct Capital Asset Life-Cycle Planning and Budgeting;
- Subprocess 1.1.8 – Conduct Acquired Services Planning and Budgeting; and
- Subprocess 1.1.9 – Conduct Project Portfolio Planning and Budgeting.
The three subprocesses connect to Subprocess 1.1.10 – Update Internal Investment Plan and Budget.
The Develop Project Plan and Budget subprocess group consists of Subprocess 1.1.6 – Conduct Project Planning and Budgeting. Subprocess 1.1.6 connects to Subprocess 1.1.9 – Conduct Project Portfolio Planning and Budgeting.
Four subprocesses connect to Subprocess 1.1.11 – Consolidate and Approve Plans and Budgets of the Consolidate and Approve Plans and Budgets subprocess group. The four subprocesses are:
- Subprocess 1.1.3 – Develop Revenue Budget;
- Subprocess 1.1.4 – Develop Operating Budget;
- Subprocess 1.1.5 – Develop Transfer Payment Budget; and
- Subprocess 1.1.10 – Update Internal Investment Plan and Budget.
Completion of Subprocess 1.1.11 – Consolidate and Approve Plans and Budgets results in two outputs. The first output is labelled “Approved budgets,” and the second output is labelled “Approved plans.”
The Manage Planning and Budget business process ends with the following note: “Approved budgets and plans are inputs to processes such as Manage Forecasting and Budget Review (Business Process 1.2); Manage Revenue, Receivables and Receipts (Business Process 2.1); Manage Procure to Payment (Business Process 3.1); Manage Travel (Business Process 3.2); Manage Other Payments (Business Process 3.3); Pay Administration (Business Process 5.1); and Manage Grants and Contributions (Business Process 6.1).”
Note A: Conduct Operational Planning (Subprocess 1.1.2) is outside the scope of the Manage Planning and Budgeting business process.
Note B: Approved budgets and plans are inputs to processes such as Manage Forecasting and Budget Review (Business Process 1.2); Manage Revenue, Receivables and Receipts (Business Process 2.1); Manage Procure to Payment (Business Process 3.1); Manage Travel (Business Process 3.2); Manage Other Payments (Business Process 3.3); Pay Administration (Business Process 5.1); and Manage Grants and Contributions (Business Process 6.1).
Note C: All of the subprocesses that follow must be completed before proceeding to the next subprocess in the sequence.