Methodology for budget projects monitoring

Abstract

The issue of monitoring project budgets is a major one when discussing about efficient project management. Thus, if the implementation of the project implies that the budget allocated to some activities has been underestimated or overestimated, then we have to deal with the question of a budgetary reallocation between the budget chapters of the project budget. Therefore, during the implementation of a project, project budget monitoring has to be made permanently through the project's cash-flow simulations and analyses. This paper has been developed within a project funded by the Sectoral Operational Program for Human Resources Development, a project implemented in partnership between two universities in Romania, over a period of 18 months. One of the major responsibilities of the project manager was the ongoing monitoring of the budget because the contractual clauses imposed major penalties if the percentage ratios between the main budget chapters of the project were not respected during the execution phase. The permanent monitoring of the project's cash flow resulted in a budget execution of approximately 96% and the percentage execution budgets of the project to be respected among the categories of budget expenditures were within the limits imposed by the financing contract.