Guideline on Common Financial Management Business Process 1.1 – Manage Planning And Budgeting

Long description for image: Figure 16. Level 1 Model of Financial Management

This figure depicts the Level 1 process flow for common financial management business processes, using six chevrons placed in three layers.

The top layer is a chevron labelled “Planning, Budgeting and Forecasting Results and Performance Reports.”

The centre layer is a row of four chevrons, each representing subsequent steps of the high-level financial management business process. The four steps are “Need Identification”; “Obligation”; “Performance, Validation and Certification”; and “Payment.” These four steps are further explained in two views—one from the Revenue perspective, the other from the Expenditure perspective.

From the Revenue perspective:

• “Need Identification” is indicated by the “Request;”
• “Obligation” is the recognition of the “Obligation;”
• “Performance, Validation and Certification” is indicated by the “Invoice;” and
• “Payment” is indicated by the “Deposit.”

From the Expenditure perspective:

• “Need Identification” is indicated by “Expenditure Initiation;”
• “Obligation” is the Recognition of the “Obligation;”
• “Performance, Validation and Certification” is indicated by “section 34 of the Financial Administration Act;” and
• “Payment” is indicated by “section 33 of the Financial Administration Act.”

The bottom layer is a chevron labelled “Master Data, Pre and Post Activities, Control and Monitoring.”

Note: FAAs. 34 refers to section 34 of the Financial Administration Act, and FAAs. 33 refers to section 33 of that Act.

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