Budget Approval Workflow
Budget Approval Workflow
Global Trust Bank operates a structured annual budgeting process to ensure effective financial planning, resource allocation, and cost discipline across all divisions and support functions. This article outlines the budget cycle, approval stages, cost centre responsibilities, and procedures for requesting mid-year budget amendments.
Annual Budget Cycle
The Bank's financial year runs from 1 January to 31 December. The annual budget cycle follows the timeline below:
| Phase | Activity | Timeline | Responsible |
|---|---|---|---|
| 1. Strategic Planning | GEC sets strategic priorities and financial targets for the coming year | June – July | GEC / Group Strategy |
| 2. Budget Guidelines | Group Finance issues budget guidelines, assumptions, and templates to all departments | August | Group Finance |
| 3. Departmental Submission | Departments prepare and submit detailed budgets via SAP BPC (Business Planning & Consolidation) | September – October | Department Directors / Finance Business Partners |
| 4. Review & Challenge | Group Finance and Divisional MDs review submissions, challenge assumptions, and negotiate adjustments | October – November | Group Finance / Divisional MDs |
| 5. GEC Approval | Consolidated Group budget presented to GEC for approval | Late November | Group CFO |
| 6. Board Approval | Final budget submitted to the Board of Directors for ratification | December | Board / Audit Committee |
| 7. Communication | Approved budgets communicated to all cost centre owners | Early January | Group Finance |
Cost Centre Structure
Budgets are managed at the cost centre level. Each department has one or more cost centres, each assigned a unique code in the SAP financial system. Cost centre owners (typically Department Directors or their delegates) are responsible for:
- Preparing the annual budget for their cost centre
- Monitoring actual expenditure against budget on a monthly basis
- Explaining material variances (exceeding 5% or GBP 50,000, whichever is lower)
- Ensuring all expenditure is properly authorised and coded
Monthly budget-vs-actual reports are distributed by Group Finance on the fifth business day of each month. These reports are accessible in SAP BPC and via the Finance Dashboard on GTB Connect.
Budget Categories
Departmental budgets are structured into the following standard categories:
- Personnel Costs — Salaries, bonuses, benefits, temporary staff, training
- Technology Costs — Software licences, hardware, cloud services, development
- Occupancy Costs — Rent, utilities, maintenance, facilities
- Travel & Entertainment — Business travel, client entertainment, conferences
- Professional Fees — Legal, consulting, audit, recruitment agencies
- Marketing & Communications — Advertising, events, sponsorships, publications
- Other Operating Costs — Subscriptions, insurance, postage, miscellaneous
Mid-Year Budget Amendments
Requests for mid-year budget amendments (increases or reallocations) must be submitted via the Budget Amendment Request Form in SAP BPC. The approval requirements are:
| Amendment Value | Approver(s) |
|---|---|
| Up to GBP 100,000 | Department Director + Finance Business Partner |
| GBP 100,001 – GBP 500,000 | Divisional MD + Group Finance Director |
| Over GBP 500,000 | Group CFO (may require GEC approval) |
Budget reallocations within the same cost centre (moving funds between categories) may be approved by the cost centre owner and Finance Business Partner, provided the total cost centre budget is not exceeded.
Capital Expenditure (CapEx)
Capital expenditure follows a separate approval process. All CapEx requests exceeding GBP 50,000 must be submitted to the Investment & Strategy Committee via the CapEx Proposal Template, available on GTB Connect under Finance > Capital Planning. CapEx proposals must include a business case, NPV analysis, and payback period calculation.
Monitoring and Accountability
Cost centre owners who consistently overspend their budget without approved amendments will be subject to escalation to their Divisional MD and may face restrictions on discretionary spending. Group Finance conducts quarterly budget reviews with each division and presents a consolidated update to the GEC.
Contact
For budget-related queries, contact your assigned Finance Business Partner or the Group Finance team at group.finance@globaltrust.com or extension 6100.