As Project and Programme Managers in the dynamic world of the Australian Public Service (APS), we understand the crucial role that accurate budget forecasting and timely funding allocation play in the success of the programmes and initiatives that we are assigned to. With the Mid-Year Economic and Fiscal Outlook (MYEFO) approaching, it’s an opportune time to discuss the considerations and strategies that can help us secure additional necessary funding for the projects and programmes that we have the responsibility of delivering. In this blog post, Alexander Andrle from Convergence Consulting will explore the intricacies of requesting additional MYEFO funding and the importance of rigorous initial project estimations.
The Mid-Year Economic and Fiscal Outlook is a key event on the APS calendar. It provides an update on the Australian government’s financial position and outlines any necessary adjustments to the budget. For Project and Programme Managers, MYEFO is a critical juncture to secure additional funding or reallocate resources as needed to keep initiatives…substantiality that the initial estimates that were originally created could not be accurate due to poor planning of scope and lack of dependency management.
Effective communication and collaboration with APS delegates who will put forward the official request on our behalf are paramount. As Project Managers, we must engage proactively with our delegates to articulate the value and impact of our projects and programmes. You must work to highlight how additional funding aligns with government priorities and objectives, namely through referencing quantified and measurable benefits so that the formal request can have a stronger basis for approval.
When requesting additional MYEFO funding, clarity is key. Providing a detailed breakdown of the funds required, demonstrating a solid understanding of the financial requirements is most important. Too often I have personally seen the basis-of-estimates for additional MYEFO funding to be a summarised figure, based on a lacklustre elucidation that the funds are required simply because their current forecast is ‘in the red’.
It is important to remember that risk management is at the centre of delivery. As a result, risks should be at the forefront of the additional MYEFO funding requests. Listing current risks, as well as specifying potential future risks that may arise due to budget constraints is a must. In addition to this, detailing how additional funding will mitigate or help in the management of these risks would be considered good practice. Emphasising the consequences and impacts of not securing the required funding, such as project delays or compromised outcomes should also be a requirement.
Accurate budget forecasting is the foundation of sound decision-making. It provides Project and Programme Managers with the constraint needed to plan effectively and make informed choices throughout the project l!ifecycle. It provides a clear picture of the resources available, helping managers determine how to distribute funds among various project components.
The main benefit of accurate and reliable budget forecasts is that they allow for the identification and management of risks. Project Managers can assess potential cost overruns or shortfalls early in the planning phase and conduct risk management activities accordingly. This proactive approach helps prevent budget-related crises during project execution.
One could argue that there has historically been a culture in the APS of using MYEFO as a flexible budget top-up activity, therefore allowing initial budget estimates to be ‘top-down and not based off a detailed basis of estimates. This is considered bad practice. Reliable……
As Project and Programme Managers within the Australian Public Service, the MYEFO season presents both challenges and opportunities. By working closely with APS delegates, providing clear justifications and aligning our projects with strategic objectives while defining quantified and measurable benefits, one can increase their chances of securing additional funding (if required). Moreover, maintaining a strong focus on accurate budget forecasting is essential for effective project management and delivering successful outcomes for the Commonwealth of Australia and ultimately the Australian public.
If your Agency or Department requires expert advisory and consultancy services in Canberra or around Australia for project budget planning, rigorous forecasting, complex ICT project management or assistance with additional funding requests through MYEFO, do not hesitate to reach out to Convergence Consulting. With our deep expertise in navigating the intricacies of Commonwealth Government funding and project management, we are committed to helping you achieve your committed outcomes efficiently and effectively. Contact us today at info@convergenceconsulting.com.au to explore how we can collaborate to drive your projects forward.