---
artifact_id: A16
name: Financial Baseline
example_version: "1.0.0"
status: "Example · Active"
scenario: "Meridian CRM Modernization — Nexus Solutions Ltd. (fictional, anonymized)"
---

## [A16] — Financial Baseline | Example

> **Example notice:** This file contains a realistic but entirely fictional example of a completed Financial Baseline. All project names, organizations, people, and data are fabricated for illustration purposes only. This is not a real project record. Use this file as a reference when completing the blank template.

---

## 1. Baseline Identification

| Field | Value |
|---|---|
| Project Name | Meridian CRM Modernization |
| Project ID | NXS-2026-CRM-001 |
| Project Manager | Jordan Patel |
| Sponsor | Alex Rivera, VP Customer Experience |
| Baseline Version | 1.0 |
| Baseline Approval Date | 15 January 2026 |
| Approved By | Alex Rivera (Sponsor); CFO sign-off (Diane Okonkwo) |
| Total Authorized Budget (BAC) | €2,400,000 |
| Performance Measurement Baseline (PMB) | €2,340,000 |
| Management Reserve | €60,000 |
| Contingency Reserve | €240,000 (included in PMB) |
| Currency | Euro (€) |
| Fiscal Year Alignment | Calendar year (Jan–Dec) |

---

## 2. Cost Breakdown by Category

| Cost Category | Authorized Amount (€) | % of Total | Notes |
|---|---|---|---|
| Platform License (CloudAxis CRM, 3-year term) | 480,000 | 20.0% | Paid in two tranches: Jan 2026 and Jan 2027 |
| Implementation Services (DataPath Consulting) | 720,000 | 30.0% | T&M contract; capped at €720k |
| Data Migration (specialist subcontractor) | 240,000 | 10.0% | Fixed-price element; includes 2 dry runs |
| Training Programme | 120,000 | 5.0% | Internal delivery with external materials |
| Infrastructure & Hosting (cloud, Year 1) | 180,000 | 7.5% | AWS tenancy provisioned Apr 2026 |
| Internal Labour (staff time, all phases) | 360,000 | 15.0% | Shadow cost at blended rate €75/hr |
| Contingency Reserve | 240,000 | 10.0% | PM authority up to €50k; above requires sponsor |
| Management Reserve | 60,000 | 2.5% | Sponsor/Steering Committee authority only |
| **Total Authorized Budget** | **2,400,000** | **100%** | |

---

## 3. Cost by Phase

| Phase | Phase Name | Duration | Planned Cost (€) | % of PMB | Key Cost Drivers |
|---|---|---|---|---|---|
| 1 | Discovery & Planning | Jan–Mar 2026 | 180,000 | 7.7% | Internal labour, vendor evaluation, consulting kick-off |
| 2 | Build & Configure | Apr–Sep 2026 | 820,000 | 35.0% | Implementation services, platform license tranche 1, infrastructure setup |
| 3 | Migration & Training | Oct 2026–Mar 2027 | 820,000 | 35.0% | Data migration contract, training delivery, ongoing consulting |
| 4 | Go-Live & Stabilization | Apr–Jun 2027 | 280,000 | 12.0% | Platform license tranche 2, hypercare consulting, closure activities |
| Contingency Reserve | (held centrally) | All phases | 240,000 | 10.3% | Released via change control |
| **PMB Subtotal** | | | **2,340,000** | **100%** | |
| Management Reserve | (Steering Committee) | All phases | 60,000 | — | |
| **Total BAC** | | | **2,400,000** | | |

---

## 4. Earned Value Baseline Parameters

| EVM Parameter | Value | Notes |
|---|---|---|
| Budget at Completion (BAC) | €2,400,000 | Total authorized budget |
| Performance Measurement Baseline (PMB) | €2,340,000 | BAC minus management reserve |
| Contingency Reserve (within PMB) | €240,000 | PM-controlled; included in PMB |
| Time-phased PV Baseline | See Section 5 | Monthly planned value curve |
| EVM Reporting Threshold | Monthly | Reported at phase-level and project-total |
| CPI Amber Threshold | CPI < 0.95 | Triggers cost review |
| CPI Red Threshold | CPI < 0.90 | Triggers corrective action plan |
| SPI Amber Threshold | SPI < 0.95 | Triggers schedule review |
| Estimate to Complete (ETC) Method | EAC = AC + (BAC – EV) / CPI | Forecasting method (CPI-adjusted) |

---

## 5. Month-by-Month Planned Value Curve (Cumulative €)

| Month | Cumulative PV (€) | Monthly PV (€) | Notes |
|---|---|---|---|
| Jan 2026 | 30,000 | 30,000 | Initiation; charter and vendor contracting costs |
| Feb 2026 | 80,000 | 50,000 | Requirements workshops; full team onboarded |
| Mar 2026 | 180,000 | 100,000 | Phase 1 complete; platform license tranche 1 paid |
| Apr 2026 | 320,000 | 140,000 | Platform provisioning; Sprint 1 start; AWS setup |
| May 2026 | 460,000 | 140,000 | Sprint 2–3; ERP integration design commences |
| Jun 2026 | 600,000 | 140,000 | Sprint 4–5; mid-phase checkpoint M4 |
| Jul 2026 | 720,000 | 120,000 | Sprint 6; ERP integration build; reduced rate |
| Aug 2026 | 840,000 | 120,000 | Sprint 7; UAT preparation |
| Sep 2026 | 1,000,000 | 160,000 | Sprint 8; UAT execution; Phase 2 close — M5 |
| Oct 2026 | 1,120,000 | 120,000 | Phase 3 kick-off; data cleanse commences |
| Nov 2026 | 1,260,000 | 140,000 | Dry runs 1 & 2; training materials development |
| Dec 2026 | 1,360,000 | 100,000 | Dry run 3 (full); reduced sprint (holiday period) |
| Jan 2027 | 1,500,000 | 140,000 | Platform license tranche 2; training delivery begins |
| Feb 2027 | 1,660,000 | 160,000 | Sales training (200 users); Support training begins |
| Mar 2027 | 1,820,000 | 160,000 | Support training complete; Phase 3 gate — M7 |
| Apr 2027 | 1,980,000 | 160,000 | Go-Live cutover — M8; hypercare starts |
| May 2027 | 2,120,000 | 140,000 | Hypercare; stabilization; issue resolution |
| Jun 2027 | 2,340,000 | 220,000 | Closure activities; benefits handover; final reporting |
| **Total PMB** | **2,340,000** | | |

*Note: Management Reserve (€60,000) not included in planned value curve — released via Steering Committee authority only.*

---

## 6. EVM Status at End of Phase 2 (30 September 2026)

| EVM Indicator | Value | Interpretation |
|---|---|---|
| Planned Value (PV) | €1,000,000 | Per baseline S-curve at 30 Sep 2026 |
| Earned Value (EV) | €880,000 | Work performed; Phase 2 scope assessed at 88% complete at reporting point |
| Actual Cost (AC) | €892,000 | Actual spend to 30 Sep 2026 |
| Schedule Variance (SV = EV – PV) | –€120,000 | Minor schedule value variance; reflects timing of EV recognition |
| Cost Variance (CV = EV – AC) | –€12,000 | Cost overrun of €12k at Phase 2 complete |
| Schedule Performance Index (SPI = EV/PV) | 0.99 | Effectively on schedule (GREEN) |
| Cost Performance Index (CPI = EV/AC) | 0.97 | Slight cost pressure (AMBER) |
| Estimate to Complete (ETC = (BAC–EV)/CPI) | €1,505,155 | Remaining work cost estimate |
| Estimate at Completion (EAC = AC + ETC) | €2,397,155 | Within budget — but trend warrants monitoring |
| Variance at Completion (VAC = BAC – EAC) | +€2,845 | Marginal positive — CPI trend requires improvement |

**Note on EV recognition:** EV at 30 Sep 2026 reflects Phase 2 milestone-based recognition. M5 (Phase 2 Build Complete) achieved on plan, releasing €880k of cumulative EV. Remaining €120k of Phase 2 EV will be recognised on UAT formal sign-off (in process; expected 15 Oct 2026).

**Cost Overrun Root Cause (preliminary):** ERP integration work packages (WP2.13–2.16) ran €52k over baseline due to undiscoped API complexity. €40k of contingency reserve drawn to cover; remaining €12k under review. See A17 performance report and A19 risk register for details.

---

## 7. Contingency Reserve Log

| Drawdown # | Date | Amount (€) | Reason | Approved By |
|---|---|---|---|---|
| CR-01 | 12 Aug 2026 | 40,000 | ERP integration scope uplift (architecture review and additional build days) | Jordan Patel (PM) |
| **Remaining Contingency Reserve** | | **200,000** | | |

---

## 8. Forecast Summary

| Forecast Item | Value | Notes |
|---|---|---|
| EAC (CPI-adjusted) | €2,397,155 | Current best estimate |
| EAC (management scenario — flat CPI 0.97) | €2,473,000 | Conservative scenario if cost pressure persists |
| EAC (optimistic — corrective actions effective) | €2,370,000 | If implementation partner delivers Phase 3 at planned rate |
| Remaining Contingency Reserve | €200,000 | Available for Phase 3 and Phase 4 risks |
| Management Reserve (untouched) | €60,000 | Available via Steering Committee only |
| Projected Final Variance | –€73,000 to +€30,000 | Range depending on corrective actions |

**PM Assessment:** The project is currently tracking to a slight overrun of approximately €73k under the conservative scenario. The PM has initiated a cost review with DataPath Consulting to identify Phase 3 efficiency improvements. A revised EAC will be presented to the Steering Committee at the Phase 3 kick-off meeting (October 2026).

---

## 9. Change History

| Version | Date | Change Description | Approved By | Cost Impact |
|---|---|---|---|---|
| 1.0 | 15 Jan 2026 | Initial financial baseline approved | Alex Rivera / CFO Diane Okonkwo | N/A — initial baseline |

*No approved budget changes to date. Baseline remains at v1.0. Contingency reserve drawdown CR-01 is within PM authority and does not constitute a baseline change.*

---

## 10. Approval Record

| Role | Name | Approval | Date |
|---|---|---|---|
| Project Manager | Jordan Patel | Approved | 15 Jan 2026 |
| Project Sponsor | Alex Rivera | Approved | 15 Jan 2026 |
| Chief Financial Officer | Diane Okonkwo | Approved | 15 Jan 2026 |
| PMO Representative | Sandra Kowalski | Reviewed | 14 Jan 2026 |

---

*Example for: Financial Baseline*
*Scenario: Meridian CRM Modernization — Nexus Solutions Ltd. (fictional)*
*See template file: artifacts/planning-and-baselines/A16-financial-baseline-template.md*
*See definition file: artifacts/planning-and-baselines/A16-financial-baseline-definition.md*
