Statement of Accounts

Purpose

To update the Estimate and provide a financial a regular and accurate financial summary for the Project.  The statement of accounts is the medium for tracking and recording the actual spend against estimated spends.

Derivation and Source Requirements

Initially the Statement of Accounts will be derived from the Estimate.

During the implementation the Schedule, information from finance tools (e.g. BIS and PAS) and the Resource Reports will be used to update the Spend Profile and Statement of accounts.

Composition

For each Deliverable (line item) including any risk mitigations the Statement of Accounts should clearly identify:

·       Resource types required – as defined by the Resource Types,

·       The total cost - in terms of Resource, capital and travel,

·       The budget – how much funds are available,

·       Commitments – How much has been committed,

·       Actuals – how much has been accrued,

·       Estimating error – a tolerance in terms of percentage that will be applied to the costs to address any estimating errors.  This tolerance will reflect the amount of uncertainty.

For each Deliverable (line item) including any risk mitigations the Statement of Accounts should clearly profile (that is identify by month) the estimate or actual for:

·       Resource cost – cost in man hours against each deliverable.

·       Travel costs – cost in Travel and Related Expenditure to complete each deliverable.

·       Capital costs – any external costs necessary to complete each deliverable

For each Deliverable (line item) including any risk mitigations the Statement of Accounts should clearly profile (that is identify by month) the estimate or actual for:

·       Resource cost – cost in man hours against each deliverable.

·       Travel costs – cost in Travel and Related Expenditure to complete each deliverable.

·       Capital costs – any external costs necessary to complete each deliverable

Quality Criteria

Does the Statement of Accounts align with finance reporting tools (BIS and PAS)?

Does the Statement of Accounts align with the Resource Reports?

Is the Statement of Accounts credible?

Quality method and skills

The Statement of accounts is a factual recorded derived from the Estimate and updated using the actual spend / accruals.  A comparison between the Resource Reports, Schedule and finance reporting tools will identify any inconsistencies.

Any significant changes will be identified to the Project Manager who will review and if necessary investigate.  During the development of the CR the resources allocated to the deliverables and their Team Managers will be responsible for deriving their estimates.