Data Element No / Heading

Data

Definition/ Description

SECTION 2 - FINANCIAL PERFORMANCE

Section 2.1 - Project Budget History

Original Approved

The approved project cost for the DMO element of the project at Government Approval. The Approved Cost is to be expressed in both 'Base Date' and in 'Current' Dollar terms.

Real Variation

Variations are to be expressed in both 'Base Date' and in 'Current' Dollar terms.

"Scope" changes are attributable to changes in requirements by Defence and Government. These generally take the form of changes in quantities of equipment, a change in requirements that result in specification changes in contracts, changes in logistics support requirements or changes to services to be provided which are accompanied by a corresponding budget adjustment.

Note: Where the original approved amount above is not Second Pass Government Approval, Projects are to disclose the actual Government Second Pass Approval amount as such in the description column (in bold) and not as a scope real variation.

"Transfers" occur when a portion of the budget and corresponding scope is transferred to or from another approved project in DMO or to another Group in Defence in order to more efficiently manage delivery of an element of project scope and to vest accountability for performance accordingly.

"Budgetary Adjustment" is made to account for corrections resulting from foreign exchange or indexation accounting estimation errors that might occur from time to time. Also included under this heading are Departmental administrative decisions that result in variations such as efficiency dividends harvested from project budgets or adjustments made to fund initiatives such as Skilling Australia's Defence Industry (SADI).

The elements above are to be subtotalled to give a single amount for all real variations (including Government Second Pass approvals).

Price Indexation Variation

Variations to the Original Approved project cost for the DMO element of the project due to price indexation adjustments to take account of variations in labour and materiel indices over time.

Exchange Variation

The variations to the Original Approved project cost for the DMO element of the project due to foreign exchange adjustments brought about by changes in foreign exchange rates for payments in foreign currency.

Total Budget

The sum of the above.