Finance Committee Presentation to PPOA Board of Directors

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Finance Committee Presentationto PPOA Board of
Directors

• Authorization for Expenditure
• AFE Process
• October 25, 2006

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Introduction

• Authorization for Expenditure (AFE)
• Proposal to Formalize Pecan Plantations Capital
  Approval Process
• Overview of Proposed Procedure
• Benefits to Pecan Plantation
• Next Steps

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Instructions

• Commentary As a Minimum, Each AFE Should
  Have Sections on the Following
• Project Title Type (Section II)
• Project Description (Section III)
• Summary - How Much Are We Spending and What Are
  We Spending It On?
• Financial Justification?
• Alternatives and/or Impact of Not Investing?
• Estimates Cost Range

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Instructions

• Summary of Financial/Project Data
• Quotations (Section IV)
• Method of Purchase Project Schedule (Section V)
• Status in the Budget/Plan Including any
  Variances, etc. and Related Retirements (Section
  VI)
• Endorsements Approvals (Section VII)

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Benefits

• Creates Sound Business Culture
• Culture Transcends Individuals
• Creates Consistency
• Provides a Management Tool Documentation
• Encourages Involvement Across Organizational
  Levels
• Creates a Healthy Thought Process

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Next Steps

• Board Must Embrace Process
• Management Commitment to Process and Endorsement
  with Employees
• Training Meetings (Finance)
• Implementation of Process FY 2007