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Forum Home > Program Management Professional (PgMP) > About "Fundling Reconciliation" in Program Financial management

s_anupkumar
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Posts: 57

"Reconciliation" is a common term used in the banking world.

For example": Banking process follows "End of day Reconciliation" mechanism. It is done by calculating the inflow & outflow transactions done by an account holder through ATM, POS, Internet banking, and other withdrawals & deposits done in that bank account.

After doing this exercise, an end of day balance will be generated for that account which will clealry say what is the financial value of that account holder at the end of the day. This mechanism is known as "Reconciliation"

In the Program management context,

Especially in a larger program, where there are more procurements involved its most likely to have many financial milestones which contains details related to all the cost inflows & outflows

Inflow (how much amount, when to expect, where to expect, who will pay, in what currencies etc.)

outflow (how much amount, when to pay, where to pay, whom to be paid, in what currencies etc.)

 

In order to optimize financial benefits within the program, the Programs which are heavily driven by cost factor, may have a fund flow strategy as follows:

Inflows: As much as possible & As early as possible

Outflows: As less as possible & As late as possible

 

Its very important the reconciliation to happen on ongoing basis with planned inflows & outflows Vs respective actual inflows & outflows. A final reconciliation to happen during the program closure.

 

Please refer the below link for discussion related to this topic:

http://www.linkedin.com/groupAnswers?viewQuestionAndAnswers=&discussionID=250164154&gid=3658376&commentID=144618190&goback=&trk=NUS_DISC_Q-subject#commentID_144618190

July 2, 2013 at 1:56 AM Flag Quote & Reply

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