Budget Preparation Workshop

( FY 2021/2022)
Prepared & Presented By
Emmanuel A. Baffoe
Budget Analyst- TU
Definition and concepts of Budget

A budget is a financial plan covering an institution’s

anticipated revenue ( Income) and proposed
expenditure (Expenses) for a particular period usually
a year. The Budget simply allowS institutions to
match expenditure with income.
Types of Budget
Three types of Budget:
1. Surplus Budget
A surplus budget means total income is greater than total
expenditure
2. Deficit Budget
A deficit budget means total income is less than total
expenditure
3. Balance Budget
A balance budget means total income is equal total
expenditure
Concept of Budgeting
Budgeting is the process of crafting a plan to generate
and spend money or resources. Budgeting allows
institutions to determine in advance whether they have
enough money to do the things needed or would like to
do.
It allows institutions to avoid wasteful spending,
minimize debt and or help work institutions out of
current debt situation.
 The Budget Cycle
Liberia’s budgeting process goes through four cycles:
1. Preparation
2. Approval
3. Implementation
4. Evaluation
These processes are anchored on the constitutional mandate of
our governing system. The Executive is responsible for
preparation and implementation while the Legislature is solely
responsible for approval and evaluation (PFM Law, 2009).
 Develop Policies
Review Policy
& Strategic Plans

1. Budget: Estimate &

4. Evaluate Allocate Resources
and The Budget
Audit Cycle
2. Legislative
Enactment
Reporting:
Monitor Activities 3.Implement Plans
& Account for Funds & Spend Funds
Budget Preparation

Budget preparation is a process with designated organizations

and individuals having defined responsibilities that must be
carried out within a given timetable.
This process is normally established and controlled by a legal
and regulatory framework ( PFM 2009)
Budget planning and preparation should be at the heart of good
public expenditure management.
To be fully effective, public expenditure management systems
requires four forms of fiscal and financial discipline:
1. Control of aggregate expenditure to ensure
affordability; that is, consistency with the
macroeconomic constraints;
2. Effective means for achieving a resource allocation
that reflects expenditure policy priorities;
3. Efficient delivery of public services (productive
efficiency); and
4. Minimization of the financial costs of budgetary
management (i.e., efficient budget execution and cash
and debt management practices).
Structure of TU Budget
The Budget of William V.S. Tubman University is divided into
two sides ( Income and Expenditure) The income side contained
three(3) sources of income;
1. GOL funding- covers appropriation within the National
Budget for TU ( Allotment & Cash receipts)
2. Internal funding- covers income generated from activities
within TU ( ex. Student Fees, etc.)
3. Donations- covers cash or material income from donors or
well-wishers of TU and philanthropists individuals or
organizations.
Structure of TU Budget Continue
The expenditure side of the budget often contained
three (3) expenditure category and they are:
1. Personnel cost- covers payment of TU employees
salaries and other personnel related cost.
2. Goods & Services- covers payments for goods
supplied or services rendered to TU
3. Consumption of fixed assets- covers payments for
acquisition of fixed assets for TU.
MACROECONOMIC OUTLOOK OF LIBERIA & TU
RESPONSIBILITY FOR FY 2021/2022 BUDGET
The Liberian economy has been challenged and these challenges have caused
growth to decline steadily over the past few years.
Factors:
 Fluctuations in the global prices of key export commodities (iron ore and
rubber etc.)
 Depreciation of the Liberian dollars against the United States dollars
 Low or stagnated foreign direct investment
 Fall in donor contribution/SUPPORT
 Outbreak and impact of COVID-19 pandemic
 Undiversified exports and lack of value addition to our key export
commodities
 Strike actions by dissatisfied Liberians
Given the challenges facing our economy, the university
must prioritize for FY2021/2022 programs and activities:
 to generate and sustain income outside of GOL
BUDGET appropriation TO TU.
 Incorporate every activity into the university’s budget
thereby avoiding extra budget for graduation, payment
for goods/services by individuals on behalf of the
university or petty cash payment for goods/services that
should be budgeted, off-budget spending etc.
 Ensure that budgetary control be the only rule for
budget execution.
THANK YOU!