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SOP-PM-05 — Cost, Budget & Financial Controls

Governs project budgets, forecasts, actuals, and financial controls.

Owner: Finance Business PartnerApprover: CFOVersion: 2.6Updated: 10/28/1969

1. Purpose

Deliver projects within approved budgets with transparent financial reporting.

2. Scope

All projects.

3. Definitions

EAC — Estimate at Completion.
CV — Cost Variance (EV − AC).

4. Roles & Responsibilities (RACI)

Activity	R	A	C	I	Cadence
Build budget	PM	Finance BP	Sponsor	Steering	Per project
Track actuals	Finance BP	CFO	PM	Sponsor	Monthly
Approve reforecast	Sponsor	CFO	PM, Finance	Steering	As needed

5. Procedure

Build the project budget from WBS with labor, vendor, and other categories.
Baseline with Sponsor and CFO sign-off.
Track actuals monthly; compute EV, CV, SPI, CPI.
Reforecast when variance exceeds ±10%.
Approve overruns via the change process before invoicing.

6. Inputs & Outputs

Inputs

Charter
WBS
Vendor SOWs

Outputs

Budget baseline
Monthly financial report
Approved reforecasts

7. Controls & Metrics

Metric	Target
Projects within ±10% budget	≥ 90%
Timely monthly reports	100%

8. Exceptions & Escalation

T&M engagements report actuals weekly with agreed thresholds.

9. Records & Retention

Record	Retention
Budget baselines	10 years
Financial reports	10 years

SOP-PM-03
SOP-PM-08

11. References

PMBOK 7 Measurement

12. Revision History

See the Versions tab for the full change history maintained by the Auto-Doc Engine.

Document code: SOP-PM-05 · Aligned to PMBOK 7 Planning / Measurement. Controlled document — reproduction outside the UBC QMS requires the Quality Manager's approval.

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Frameworks

PMBOK 7

ISO 9001

SOC 2