Budget Management and Control

Budget Management The responsibility for the management of funds allocated to the cost centers rests with the Budget Manager of the respective cost center. Budget Control The Vice President for Finance and Administration has the responsibility for establishing and maintaining a financial accounting system that effectively provides a basis for e ecuting the budget as well as for providing accurate and timely comparative reports on budgeted vs. actual revenues and e penditures. !n addition" the Vice President for Finance and Administration has the responsibility to develop and manage a system of financial controls that will monitor revenues and ensure that e penditures are incurred in accordance with the approved budget. #ach Budget Manager has the responsibility for ensuring that the operations are administered in accordance with the approved budget and that effective budgetary controls are established and administered at the cost center level. The Budget Manager must ensure that funds are e pended only for the purposes for which they were initially budgeted and are not e ceeded. $evenue and e penditure control involves the systematic review of revenue and e penditures and analysis of any budget%to%actual variances. Changes in the approved budget are possible through the following budget reallocations& % $eallocations of amounts within the approved budget for the cost center. This represents reallocation of amounts between line items. 'o amounts can be transferred to or from the following groups of line items& (alaries and Benefits" )epreciation" and Facilities Transferable Costs. Also" no amounts can be reallocated from capital to operating budget and vice versa. % Budget amendment. This represents a re*uest for additional resources based upon changed circumstances. Budget $eports The following reports are produced out of the accounting system monthly& +. Budget (ummary $eports ,operational activities(hows the budget" actual revenue and e penses for the current month and year%to%date" and the available budget balance for operational activities. The report is prepared for every cost center. .pon re*uest" the same report can be prepared by pro/ect" or by donor code. 0. Budget (ummary $eports ,capital e penditures(hows the budget" actual for the current month and year%to%date" and the available budget balance for capital e penditures. .pon re*uest" the same report can be prepared by pro/ect" or by donor code. 1. Transaction Budget $eport (hows all transactions for any cost center including the following information& line item" month and date of the transaction" amount" description" account number" accounting entry number and number of the supporting document. + February 0223