Budget questions

Hi all

I have a quick favor to ask for any of you that are engaged in project finance.
In our final budget vs actuals for a project, the salary lines for a few staff are overspent by up to 30% and the verification team has asked for explanations on these. Now since all the salary lines are overspent, its not like we can say it balances off with savings in other salary lines so was hoping on a few suggestions here. I know I'm the one who has the background info on the project and would be able to explain this better but maybe some generic answers or suggestions to assist please.

Thanks a bunch!

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Blodyn · 22-25, F

@tallpowerhouseblonde Or just place a value on your staff. Is that difficult? We put a value on everything else.

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ianon

@boopy how do you measure outcome,was it launched online where you can monitor that with data or what? if so you could use that if it is good information to use aka means your project was successful and present that

boopy · 26-30, M

@Blodyn I agree and also which is why I'm struggling to link the overspending to the achieved outomes

ianon

@boopy could you not accumulate feedback from subjects that are familiar with the project? and if the feedback is positive ,again,you would be in luck. it would be easier to brainstorm had we more information but good luck a 30% overspent is ,ooft

boopy · 26-30, M

Thanks everyone for your comments and answers. Love the community here and appreciate each one of you! : D

tallpowerhouseblonde · 36-40, F

You need an itemized cost breakdown from the staff that have overspent.See if the spend was needed or has been wasted.Expensive dinners/hotel expenses cannot be justified.
Introduce a signing off form to get any costs approved before the money is spent going forward.

questionWeaver

Which did they help?

Quality
Schedule
Cost

Which two of the above did the sponsor want you to optimize?

Are you a PMP?

boopy · 26-30, M

@questionWeaver it is an NGO project on constitutional advocacy so I think the output in quality of work is what they would expect to maximize on most

questionWeaver

@boopy Then you explain the cost overage was directly associated with achieving the targeted quality level.

And go home

ianon

What are the reasons behind the overspent?

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Blodyn · 22-25, F

@ianon In business we always underestimate the value of intellectual property. We think in terms of wages. You do all the time.

ianon

@Blodyn I do not disagree trust me,and not just intellectual property but manual labour too. the problem is trying to actually monitor that in the first place in a manner that is accurate and fair so..

Blodyn · 22-25, F

@ianon It has been so enlightening to speak with you. I am starting up my own jewellery business and you have such a balanced view on business.

Blodyn · 22-25, F

Emphasise the value of the experience those people brought to the project. Give it a value in £ and pence. And you will be running at a profit. Listed in Standards and Poors before you know it!

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