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 executing the budget as well as for providing accurate and timely comparative reports on budgeted vs. actual revenues and expenditures. In 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 expenditures are incurred in accordance with the approved budget. Each 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 expended only for the purposes for which they were initially budgeted and are not exceeded. Revenue and expenditure control involves the systematic review of revenue and expenditures and analysis of any budget-to-actual variances. Changes in the approved budget are possible through the following budget reallocations: - Reallocations of amounts within the approved budget for the cost center. This represents reallocation of amounts between line items. No amounts can be transferred to or from the following groups of line items: Salaries and Benefits, Depreciation, and Facilities Transferable Costs. Also, no amounts can be reallocated from capital to operating budget and vice versa. - Budget amendment. This represents a request for additional resources based upon changed circumstances. Budget Reports The following reports are produced out of the accounting system monthly: 1. Budget Summary Reports (operational activities) Shows the budget, actual revenue and expenses for the current month and yearto-date, and the available budget balance for operational activities. The report is prepared for every cost center. Upon request, the same report can be prepared by project, or by donor code. 2. Budget Summary Reports (capital expenditures) Shows the budget, actual for the current month and year-to-date, and the available budget balance for capital expenditures. Upon request, the same report can be prepared by project, or by donor code. 3. Transaction Budget Report Shows 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. 1 February 2006