There was a time when project accounting records, costs, and expenses of business projects were beneath the eye level of top business management. That time is past.
The integration of projects into a corporate portfolio has implications for corporate ethics and accountability. As the recent Enron case indicates, the source of Enron's problems in accountability and abuse of reporting accounting were grounded in part in the lack of an integrated project accounting system. Enron was a classic multiproject corporate environment. As such, top management had direct and continuous contact with the many natural gas project investments and projects in the company; in fact, they created many of these projects in their negotiations with their many potential customers, for instance, utilities, manufacturing plants, communities, and the like. Some top managers were paid bonuses based on profits attributable to individual projects they generated.
The new Sarbanes-Oxley legislation and regulation now requires that business officers sign-off on business and financial reporting and assure that internal controls are in place to track all business expenditures to make sure that they are legitimate. In project-oriented companies such as Enron, this means that now actual costs must be integrated into project planning and management. Project integration is associated with both program and project management.
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What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.