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Saudi Aramco 7180 (5/89) G.I.

NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL


ISSUING ORG. SUBJECT:

20.110
ISSUE DATE

Approved

REPLACES

PROGRAMS, FORECAST & ANALYSIS DEPT. NO-CAPITAL BUDGET AND PROGRAMS

05/0l/1991
APPROVAL

4/16/1983
PAGE NUMBER

SMJ

OF

CONTENT:
This Instruction outlines the objectives and scope of the Non-Capital Budget and Program, and describes the procedures for development, processing, approval and distribution of the Non-Capital Budget and Programs. The text includes: 1. 2. 3. 4. 5. 6. 7. 8. 9. Objective Scope Non-Capital Program Non-Capital Budget Responsibilities and Procedure Review, Approval and Publication Revisions to the Budget Accountability Related Instructions

1.0

OBJECTIVE:
The Company maintains the Non-Capital Budget and Pro g am to plan, budget and control major NonCapital projects of a construction nature and on the same basis as other construction projects.

2.0

SCOPE:
The Non-Capital Budget and Program includes projects and Budget Items in the following categories: 2.1 Home Ownership & Community Development - See G.I. 20.151 Home Ownership and Community Development Budget and Programs. Saudi Aramco Built Government Schools - Expenditures required to meet the educational requirements or school age children of the Company's Saudi Arab employees. Major Roads - Arterial roads connecting Company facilities or installations with Saudi Arab Government highways. Other Non-Capital - Includes protection or rerouting of Company pipelines which intersect Saudi Government highways, railroads or other installations, and any other projects of a construction nature which are designated as Non-Capital in order to plan, budget and control those non-capital projects on the same basis as capital projects. Construction of these projects often is under progress for more than one fiscal year.

2.2

2.3

2.4

3.0

NON-CAPITAL PROGRAM:
Project descriptions covering a five year Program cycle consisting of appropriation and expenditure data are presented in the Spring Business Plan and Business Plan Fall Update. The Non-Capital

* CHANGE

** ADDITION

NEW INSTRUCTION

COMPLETE REVISION X

Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL


ISSUING ORG. SUBJECT:

20.110
ISSUE DATE

Approved

REPLACES

PROGRAMS, FORECAST & ANALYSIS DEPT. NO-CAPITAL BUDGET AND PROGRAMS

05/0l/1991
APPROVAL

4/16/1983
PAGE NUMBER

SMJ

OF

Program includes projects for Home Loans, Saudi Aramco Built Government Schools, Community Development, Donations and other Non-Capital projects.

4.0

NON-CAPITAL BUDGET:
Includes all Budget Items which require approval in the first year of the five year Program. Budget briefs are included in the Capital Budget Book as approved in the Fall Board of Directors meeting and published by Capital Programs, Forecast & Analysis Group.

5.0

RESPONSIBILITIES AND PROCEDURE:


5.1 Facilities Planning Department in con junction with the Resources Planning Department and the assigned Construction Agency will provide staff assistance in engineering review, development of project schedules, cost estimates and timing of expenditures. See G. I. 20 .151 for responsibilities and procedures concerning the Home Ownership & Community Development section of the Non-Capital Budget and Programs. 5.2.1 Employee Relations & Training (Personnel Department ) is the proponent of Home Ownership and Community Development Budget Items and coordinates that section of the Non-Capital Budget and Programs. The only exception is for Budget Item 2995 Home Ownership Misc. Community Development Items, Operating & Maintenance Expense, for which the proponent is Community Services.

5.2

5.3

Employee Relations & Training (Education Department ) is the proponent for Saudi Aramco Built Government Schools and coordinates that section of the Non-Capital Budget and Programs. The respective proponents of Major Roads and Other Non-Capital projects are responsible for coordinating these sections of the Non-Capital Budget and Programs. Budget Items and Expenditure Requests are prepared in accordance with the G. I. 20.500. Capital programs, Forecast & Analysis Group assigns new Budget Item numbers (See G. I. 20.510) and reviews the briefs for adherence to applicable policies and procedures.

5.4

5.5 5.6

6.0

REVIEW, APPROVAL AND PUBLICATION:


6.1 The Non-Capital Program is submitted to the Planning Advisory Committee (PAC) and the Management Committee (MC) for review, recommendations and endorsement during the Spring Business Plan review meetings. It is updated and reviewed again during the PAC and MC Business Plan Fall Update meetings. The Capital Budget is also reviewed during these meetings.

* CHANGE

** ADDITION

NEW INSTRUCTION

COMPLETE REVISION X

Saudi Aramco 7180 (5/89) G.I. NUMBER

SAUDI ARABIAN OIL COMPANY (Saudi Aramco) GENERAL INSTRUCTION MANUAL


ISSUING ORG. SUBJECT:

20.110
ISSUE DATE

Approved

REPLACES

PROGRAMS, FORECAST & ANALYSIS DEPT. NO-CAPITAL BUDGET AND PROGRAMS

05/0l/1991
APPROVAL

4/16/1983
PAGE NUMBER

SMJ

OF

6.2

The Non-Capital Program is approved by the Board of Directors at their Spring meeting and again at the Fall meeting after it has been updated. The capital Budget is approved by the Board at the Fall meeting. Capital Programs, Forecast & Analysis Group (CPF&AG) publishes the Non-Capital Budget as part of the Capital Budgets Book distributed after approval by the Fall Board. CPF&AG also provides rulings and advice on which expense projects are to be included in the non-capital budget. The Non-Capital Program is published as part of the Spring Business Plan and Fall Update by the Corporate Planning Department.

6.3

6.4

7.0

REVISIONS TO THE BUDGET:


The Non-Capital Budget is revised as necessary based on approved Expenditure Requests processed in accordance with G.I. 20.500.

8.0

ACCOUNTABILITY:
Capital Programs, Forecast & Analysis Group issues a Quarterly Accountability Report titled Capital/ Non-Capital Expenditures (AR 190-2) which compares actual and forecast expenditures by Budget Item with Approved Funds. Capital Programs, Forecast & Analysis Group issues the Programs and Budgets Status Report (ARl97) which compares approved Expenditure Requests with the original Budget. Besides reporting this information on the Capital Budget it has a separate section covering the Non-Capital Budget.

9.0

RELATED INSTRUCTIONS:
20.500 20.510 21.201 Expenditure Requests Budget Item, Expenditure Requests & Job Ordering Numbering System Approval Authority

Approved By: Manager, Programs, Forecast & Analysis Dept.

* CHANGE

** ADDITION

NEW INSTRUCTION

COMPLETE REVISION X

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