Postgraduate Diploma in

Teaching

Budgeting
HPGD2203
Educational
Management
What is budgeting ?
Scott, Martin, Petty & Budgeting is simply a forecast of future events
Keown, 1999
Budget perform 3 basic functions
• Indicate the amount and timing of firm’s needs for the future
financing
Campbell, Roald, • Provide the basic for taking corrective action in the event budgeted
Cunningham, figures do not match actual or realized figures
Nystrand & Usdan, • Provide basics for performance evaluation
1990

Budget is a document which specifies the planned expenditures and

anticipated revenues of school district in the given fiscal year, along
with other data and information related to the fiscal elements of the
Ovsiew & Castetter, 1960 educational philosophy, programs and needs of the district

A school budget is a planning document that links programmatic

Swanson & King, 1997
decisions to financial information about the revenues and expenditure
Budget
Decentralization of The time table plan is the Requires justification for
budgetary decision major instrument of resource each expenditure in the
making allocation budget

Site-Based Budget Limited Plan Budget Zero Budgeting

APPROACHES IN BUDGETING
Pragmatic Budgeting Incremental Budgeting Program Budgeting

An incremental budget is a A budget prepared with

budget prepared using a program descriptions
previous period's budget or instead of expense line
actual performance as a basis items
with incremental amounts
added for the new budget
period.
 Approaches to Budgeting
Unity

Operational Regularly
Adequacy

Good
Budget
Clarity
Publicity

Balance
Budget preparation

Needs Goals Objectives Program Budget

Evaluation
Budget implementation

 Fund for school site

 Technology

 Maintenance & Operations

 Risk management

 Food Services

 Purchasing
Evaluation of Budget

Financial efficiency
Comparing the out-turn budget with the start of the year

Resources efficiency
Looking at what money was spent on

Effectiveness
Assessing whether the expenditure hs achieved the outcome as hoped
 Budget Evaluation

Functional Evaluation Strategic Evaluation

Financial and resources Occurring as part of the

efficiency
carry out annually school’s normal evaluation
Advantages of Budgeting
 Define goals and objectives.
 Identify where you spent your money.
 Organise your day to day finance into balance.
 Allocate resources.
 Develop good spending and saving habits.
 Coordinate activities.
 Guide you in planning long-term financial goals.
 Identify errors made by your finance department.
 Prepare for shortages in income or emergency expenditures.
 Budgeting can gives you options.
 Forces managers to do better forecasting.
 Provides useful information for superior to evaluate the performance of managers.