Your multi-year infrastructure modernization program is approaching its final governance gate. To satisfy program financial closure requirements and show that no further liabilities will be incurred, which action should you take?
Establish a contingency fund to cover potential warranty claims after closeout.
Redirect remaining budget to initiate a high-priority enhancement project approved by the sponsor.
Reconcile all program cost accounts, confirm every outstanding invoice is paid, and submit the final financial report.
Produce revised cost forecasts for benefits sustainment activities over the next three years.
Financial closure is complete only when all cost accounts are reconciled, outstanding invoices are paid, and a final financial report is issued to governance. This confirms that no additional payments are due. Creating contingency funds, redirecting residual budget, or updating long-term sustainment forecasts may be valuable, but they do not eliminate existing liabilities or close the program's books.
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Why is reconciling program expenses important during financial closure?
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What risks can arise if invoices are not correctly processed during program closure?
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Why is developing initial financial estimates part of planning and not closure?
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PgMP
Governance
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