Budget Review & Lockbox Definition, Goals, and Objectives
The Project's Budget and Lockbox are closely related. The budget represents the Project Owner's forecast of annual revenue, expenses, Capital Repair & Replacement (CR&R) items, and long-term CR&R schedule. Correspondingly, the Lockbox Agreement represents the legal requirement dictating how the Project's money is collected, held, and distributed, as well as governs the Project's budgeting procedures. The Portfolio Management Team's budget review process verifies that the Project Owner's budget forecasting assumptions are financially sound. Likewise, the lockbox review process verifies that monies go where agreed, cash flow priorities are maintained, and accounts are properly managed. Both of these oversight mechanisms help ensure the Project's financial compliance and support the portfolio's goal of having financially healthy projects.
Roles and Responsibilities
Asset Managers will assist the Portfolio Management Team during the budget review process and will coordinate the final budget approval by the Air Force. Asset Managers are also responsible for reading quarterly Lockbox reports, coordinating Air Force approval of disbursement requests, and briefing any relevant issues to installation leadership. The AFCEE Portfolio Management Team coordinates the annual budget process, performs the technical analysis of the budget, and makes a formal written recommendation of approval or disapproval. The Portfolio Management Team is also responsible for analyzing the Project's monthly flow of money and producing a quarterly report detailing compliance with the Lockbox Agreement.
Process and/or Metrics
While the Annual Budget Review process is conducted once a year immediately following the proposed budget submittal, the Project's conformance to budget is analyzed on a quarterly basis. The percent variance between actual and budgeted expenses is analyzed and a rating is assigned in the quarterly report scorecard. The Portfolio Management Team identifies any lockbox discrepancies in the quarterly lockbox report and works with the Lockbox Agent and Project Owner to ensure any non-compliant issues are resolved.
