Budget Management
ü
A Budget is an estimate of the amount of money to be received
and to be spent for a specified purpose in a given time.
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b) Budgets set a framework for reporting and analysis.
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c) Budgeting never stands completely
alone, but rather flows out of the
managerial process of setting objectives and strategies and of building plans.
It is especially and intimately related to financial planning.
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d) While accounting, separate sub-codes to be created for every
activity under the main grant code, so that the utilization of the budget can
be monitored activity-wise.
While Planning the
Financials
i)
a) The whole team needs to be involved in budgeting process.
ii)
b) Objectives of the
program along with activity
plans must be completed before starting the budgeting
process.
iii)
c) Changes in strategies for the
forthcoming year based on the past experience
have to be unanimously decided by the team and the budget should be accordingly
formulated.
iv)
d) List out the resources required
to achieve these activities and cost them.
v)
e) All line items in the budget must flow from planned
activities.
vi)
f) Budget should be as detailed as possible with justifications
and break up of costs matched against each activity.
vii)
g) When budgeting for subsequent years/phase, cost increases due
to inflation, exchange rates etc would need to be kept in mind.
viii)
h) All expenses have to be reviewed against the budget on a
monthly basis.
ix)
The project management shall
verify the quarterly reports against the budget,
analyze causes for variance and take appropriate action.”
b.
Write an essay on different sources of Funding and their advantages and
disadvantages.
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