Replied By: Jitesh

Darryl,

Question provides some (irrelevant) financial management information. But then asks as a program manager what do you ensure from the given alternatives? (most likely regarding financial management activities).

SPM doesn't mention about reserve analysis. It does however make sense as part of the risk and financial management monitoring activities that reserves are analysed and maintained to sufficient levels.

You don't really have to ensure that you spend all the money in each fiscal year. Such decision may lead to unnecessary spendings at times.

First sentence of SPM section 8.2.5 states, "Developing program's budget involves compiling all available financial information and listing all income and payment schedules in sufficient detail so that program's costs can be tracked as part of the program budget baseline." And as you can see the writer has just taken that line from SPM and made the question out of it.

You don't have to ensure that you add 10% margin to the budget because of anticipation. This option is being a little too specific about something that is not presented in the given option. If scenario would have talked about the reduction by the ministry's budget office then also what is your justification to add 10% margin and what most importantly, about PGB's approval?

So A, B and D are not better choices compared to option C and hence option C should be the answer. Something that you have to ensure.

Regards,

Jitesh