Questions About Project Cost Reconciliation

Here’s a situation:

During the execution of a USD150 Million dollar major project, monthly group meetings were regularly being held between the financial team (1 manager, 1 supervisor, 1 specialist) and the project controls team (1 manager, 1 supervisor, 1 specialist).

They spend more than a couple of hours to four hours each time trying to reconcile commitment costs, actual expenditures, and accruals to cents. The goal is to reconcile to absolute zero. To do this, they were scrutinizing down to line items. Sometimes the meeting has to be rescheduled because of amount of from USD0.15 to USD0.99.

Some cost management professionals said it’s a waste of time chasing, say, USD0.25, spending hours to reconcile. The cost of the effort involved translates to maybe more than tens of thousand times the amount being reconciled.

My question to you all. 1) Do you think that this reconciliation exercise down to the cents value is really needed and why? 2) Is there a better approach?… a faster way of reconciliation? Rufran hashtag#pmsolutionpro hashtag#rufranfrago hashtag#projectmanagement Picture credit: blog paytraq.com, 2019

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