Learning Log 8

BENEDEN N. MORONG

SERVICE MANAGEMENT

LEARNING LOG NO. 8

IT Financial Management

             

              The class was introduced to IT Financial Management.

             

              My learning for this session is based from the supplemental sent by the professor and from personal research.

          The professor presented the Financial management for IT services, a process inside the Service Strategy phase of an ITIL IT Service Lifecycle basically consisting of three main processes: Budgeting, Accounting and Charging.

             

              The objective of IT Financial Management was also discussed. Financial management of Information Technology Resources is helps to improve service while lowering costs. It manage IT expenditures, with the goal of providing both business units and IT departments with a common framework to evaluate services and plan for future investments to optimize IT spending.

                   In my opinion, IT Financial Management is important in an organization as IT contributes for services, resources and costs. In the government, financial planning occurs once a year, several months before the opening of the next fiscal year. What we practice in our institution, Department of Budget and Management (DBM) allocates fund for each State College and University as states in Budget Appropriation Act. The ICT director is the one who consolidates all ICT needs/requests of each department, evaluate if the specifications requested fits its intended use and recommend for its approval. Budget officer review and check against allocated budget for ICT needs. Accountant will monitor requests. Procurement of items will follow upon the approval of the President of the institution. At the end of the fiscal year, the budget office will prepare expenditure report. As for charging, fees are reflected on the bills paid by the students such as laboratory fee, internet fee and energy fee.