Professional Documents
Culture Documents
NUMBER
20.110
ISSUE DATE
Approved
REPLACES
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
20.110
ISSUE DATE
Approved
REPLACES
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
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
* CHANGE
** ADDITION
NEW INSTRUCTION
COMPLETE REVISION X
20.110
ISSUE DATE
Approved
REPLACES
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
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
* CHANGE
** ADDITION
NEW INSTRUCTION
COMPLETE REVISION X