Managed Budget and Cost
Manage I&T-related financial activities across business and IT functions, encompassing budgeting, cost-benefit management, and spending prioritization through the use of formal budgeting practices and a fair and equitable cost allocation system for the company. Consult stakeholders to identify and control total costs and benefits in the context of strategic and tactical R&T plans. Initiate corrective action when necessary.
objective
Promote a partnership between IT and business stakeholders to enable effective and efficient use of IT-related resources and provide transparency and accountability of the cost and business value of solutions and services. Enable the company to make informed decisions about the use of I&T solutions and services.
management practices
APO06.01 Manage finance and accounting.
Establish and maintain a method for managing and accounting for all I&T-related costs, investments and depreciation as an integral part of the company's financial systems and accounts. Report using the company's financial measurement systems.
APO06.02 Prioritize resource allocation.
Implement a decision process to prioritize resource allocation and establish rules for discretionary investments by individual business units. Include potential use of external service providers and consider purchase, development and lease options.
APO06.03 Create and maintain budgets.
Prepare a budget that reflects investment priorities based on the portfolio of I&T-enabled programs and I&T services.
APO06.04 Model and allocate costs.
Establish and use an I&T costing model based, for example, on the service definition. This approach ensures that the allocation of costs to services is identifiable, measurable and predictable, and encourages the responsible use of resources, including those provided by service providers. Regularly review and compare the cost/chargeback model to maintain its relevance and suitability for evolving business and IT activities.
APO06.05 Manage costs.
Implement a cost management process that compares actual costs to budget. Costs must be monitored and reported. Deviations from the budget must be identified in a timely manner and their impact on the company's processes and services must be evaluated.
Skills
IMF Financial Management
The overall financial management, control and administration of IT assets and resources used in the provision of IT services, including the identification of material and energy costs, ensuring compliance with all governance, legal and regulatory requirements.
Translated by 4Matt Technology from the original Process Symphony: Budget and Cost Management - APO06 (COBIT 2019)
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