Financial Management


Financial management (as opposed to cost management) is the component of the Project Plan concerned with estimating, obtaining and managing the funds required for the delivery of real property projects throughout all phases of the National Project Management System (NPMS).


to ensure that project funding is obtained quickly and effectively managed throughout all phases of the NPMS.

Real Property Context

Real property projects are funded by either Public Services and Procurement Canada (PSPC) itself (as a major real property custodian) or by other government departments (OGD) and agencies (where they are the custodian). Project leaders in consultation with project managers are responsible to obtain project funding, sufficient to cover the known scope, prior to undertaking any services. PSPC obtains its funding from the Treasury Board through an annual process of identifying either projected programs of work (with multiple projects) or individual proposed projects. Based on dollar thresholds and delegated departmental authority, some projects require Treasury Board (TB) approval of funding and limits may be set at the contract levels. For major projects TB funding is obtained under a preliminary project approval (PPA) based on a general scope of work and an indicative estimate. This allows projects to be initiated to further develop a more defined scope of work and a substantive estimate. Once the substantive (class B) estimate has been finalized an effective project approval (EPA) is sought from TB. The financial management component of the Project Plan requires the project manager to:

  • provide estimates and cash flow forecasts for the project to the client for the project's duration
  • assist the client with the preparation of PPA and EPA submissions (or OGD equivalents)
  • obtain funding from clients before commencing work
  • utilize the Project Business Management System (PBMS) following its business rules for the budgeting, forecasting and reporting of project expenditures
  • complete time sheets and update percentage of completion for billing purposes
  • certify services rendered from consultants and contractors engaged on the project
  • authorize payment of invoices
  • ensure all potential scope changes are reviewed for impact on cost, schedule and quality - and appropriately approved

Financial Management Toolkit

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