Managed Budget and Cost
Manage I&T-related financial activities across business and IT functions, including budgeting, cost and benefit management, and expenditure prioritization through the use of formal budgeting practices and a fair and equitable system of cost allocation for the enterprise. Consult with stakeholders to identify and track total costs and benefits in the context of I&T strategic and tactical plans. Initiate corrective action as necessary.
objective
Foster 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 business 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 R&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-making 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 leasing 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 on, for example, the service definition. This approach ensures that the allocation of costs to services is identifiable, measurable, and predictable, and encourages 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 should be monitored and reported. Deviations from budget should be identified in a timely manner and their impact on company processes and services should be assessed.
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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