Let’s say you have been through your programme and are ready to close it out. There is obviously quite a lot to do, and the finance elements will be part of that. Here’s what to consider when closing out the financial management of a programme, inspired by the Standard for Programme Management.
The programme will have created benefits, some of which have probably been realised as the work progressed. Towards the end of the programme, you may need to estimate the ongoing costs for making sure those benefits continue to be realised. For example, maybe recruiting an additional person to manage some deliverables once the programme team is stood down. This should last for as long as the benefits are going to be tracked for, or as long as you think is appropriate.
Any ongoing costs that will be passed to the operational teams should be made clear and budgeted in their ongoing profit and loss accounts for the department.
Will you have any money left at the end of your programme? Probably not – in my experience project and programme teams tend to spend everything allocated to them!
On the off-chance that you do have funds left – let’s say, in the case of closing the programme a little earlier than expected – you should be in a position to hand some funding back. Any contingency funds that have not been used can be returned to the corporate ‘pot’.
You’ve been creating financial reports for the duration of the programme, and those will now stop as the programme is wound up. However, stakeholders may be relying on that information. If there is the expectation that some of the financial reporting is still required, perhaps in a slightly different or amended format, you should put in place options to make that happen.
For example, perhaps another department can pick up running the reports, or they can be automated.
Tip: Even if you are automating the reports, please make sure each report has an owner! When we migrated a load of reports from a legacy system into a new one we weren’t sure which reports were used and which were no longer required because there was no data ownership. We didn’t migrate a bunch of them, figuring that if they were missed someone would say! Nobody said anything, so it’s probably those were simply no longer required, even though the system produced them regularly.
Sustainment of a programme is the work required to make sure the outcomes are maintained going forward, once the programme structure itself is no longer there to support them. Beyond benefits, there might be some additional funding required to sustain the programme’s vision, achievements or outcomes. For example, perhaps you implemented new tools and now the business needs to have someone in post to maintain that software.
In my experience, people who enjoy the environment of delivery are not always the same people who enjoy the day job. You may find that programme resources are not interested in staying on in ‘day job’ roles to support the ongoing running of whatever needs to be sustained, so you could end up having to budget for hiring new roles.
Close out checklist
At the end of your programme, check to make sure you have the following aspects covered from a budget perspective:
- Financial inputs to the programme closure report and any final financial reports or closure statements
- Updates to the financial management plan if necessary
- Updates to the lessons learned database or organisational knowledge repository
- Any related documents that might be useful in the future
- All invoices and supplier contracts wrapped up and closed
- Programme budget and cost centre/cost codes shut down so no further work can be allocated to them.
What else would you consider when closing out a programme budget? Let me know in the comments!