Guideline on Common Financial Management Business Process 1.1 – Manage Planning And Budgeting
Long description for image: Figure 8. Develop Operating Budget (Subprocess 1.1.4) – Level 3 Process Flow
The figure is a process flow diagram consisting of activities, connectors, inputs and outputs, and decisions.
This diagram depicts the Level 3 process flow for Subprocess 1.1.4 – Develop Operating Budget, which begins with connectors from Subprocess 1.1.3 – Develop Revenue Budget and Subprocess 1.1.2 – Conduct Operational Planning; Subprocess 1.1.2 is outside the scope of the Manage Planning and Budgeting business process.
Subprocess 1.1.2 – Conduct Operational Planning provides the input labelled “Draft operational plan,” and Subprocess 1.1.3 – Develop Revenue Budget provides the input labelled “Draft revenue budget.” Both inputs connect to Activity 1.1.4.1 – Identify Operational Resource Requirements.
The flow advances to Activity 1.1.4.2 – Develop Operating Assumptions and then to the following two activities, to be completed concurrently:
- Activity 1.1.4.3 – Develop Salary Budget; and
- Activity 1.1.4.4 – Develop Non-Salary Budget.
Subprocess 1.1.1 – Develop Notional Budget Allocations provides the input labelled “Notional budget allocations,” which connects to Activity 1.1.4.3 – Develop Salary Budget and Activity 1.1.4.4 – Develop Non-Salary Budget.
A connector for Subprocess 1.1.10 – Update Internal Investment Plan and Budget provides the input labelled “Capitalized salary,” which connects to Activity 1.1.4.3 – Develop Salary Budget.
The flow continues to Activity 1.1.4.5 – Combine Salary and Non-Salary Budgets, followed by Activity 1.1.4.6 – Identify Operating Budget Pressures, Surpluses and Risks. The flow then advances to Activity 1.1.4.7 – Validate Operating Budget, Pressures, Surpluses and Risks.
The flow continues to a decision labelled “Validated?” The NO flow for the decision “Validated?” continues to Activity 1.1.4.8 – Revise Operating Budget as Required and then flows back to Activity 1.1.4.7 – Validate Operating Budget, Pressures, Surpluses and Risks. A connector for Subprocess 1.1.11 – Consolidate and Approve Plans and Budgets flows to Activity 1.1.4.8 – Revise Operating Budget as Required.
The YES flow for the decision “Validated?” leads to two outputs labelled “Draft operating budget” and “Operating budget pressures and surpluses.” Both outputs continue to the connector for Subprocess 1.1.11 – Consolidate and Approve Plans and Budgets.