Learning Journal

for the
Budgeting Monitoring Essentials
Online Workshop
Module One
1.0 Welcome
Begin Your Work in the Learning Journal
Reflection
Why are you attending this workshop? Write a short description of any particular problem you are
facing or other motivation.

One of my current role is to review the budget,expenses and to support the Asia country offices
finance team. So, the objective for me to attend this workshop is simply to widen my knowledge
relating to budget monitoring so that I can support them.

How will you be involved in budgeting monitoring activities in the next 3-6 months?

Will be reviewing the budget vs actual of country offices, feedback and guide them on their work
if needed.

What aspect(s) of budget monitoring concern you most?

Reforecasting, variance analysis and reporting.

What do you look forward to doing differently as a result of participating in this workshop?
Will sharing my understanding and knowledge with country office finance team.

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1.1 Financial Monitoring Using Financial Reports
Reflection
Which of the financial reports in this table do you have questions about? Enter a checkmark next to any
of them that you want to know more about.

Qs? Report type Produced for How often How used

Budget monitoring Project staff, Monthly or To track the use of funds
Managers, Board quarterly compared to budget. To
members identify any problems early
on and plan corrective
action for the next phase of
implementation.
Cash flow Finance staff, Monthly To make sure that there is
Managers, Project enough money in the bank
staff to run planned activities. To
find solutions for periods of
cash shortages.
Donor/funder Funding partners As specified by To explain how project
funder rules funds are being used,
compared to the original
plan and Key Performance
Indicators (KPIs). To
highlight matters for review
or action, such as to request
changes to the budget or
the terms of the funding
agreement.

Financial statements Funding partners Annual To be publicly accountable

(audited) (current/potential), for the organization's
Government income and expenditure,
agencies, General and any assets and
Public liabilities.

Partner Community 3-6 months To show how the funds

partners, service raised for community
users projects are being used.

Do you know if all of these reports are used in your organization? If you are able to, ask your finance
team for copies of these reports and compare them to see how the level of detail varies depending on
the purpose of the report.

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1.2 Chart of Accounts
Reflections on “Make a Link”
1. Reflect on the use of account codes in the MTTI budget worksheet (contained in the budget
pack). Are the account codes used in the budget the best choices for the items described? Are
the choices consistent? Jot down any notes you have about what might have been done
differently, if anything.

2. Reflect on the phased budget on page 3 of the budget pack. Is it clear how the direct costs listed
there are linked to the detailed project budget worksheet? Jot down your notes on how these
documents are kept in sync.

3. Reflect on the consolidated budget on page 1. What makes it possible to include the phased
budget for this project with the other department budgets in the consolidated budget? Jot
down your notes on how these documents are kept in sync.

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Module Two
2.2 Budget Monitoring Report Data
Reflection: Accounting Method

Take a few minutes now to think about the impact of the accounting method on a project budget
monitoring report.

In the accruals accounting scenario presented in the lesson, the cost of the equipment would be
included in the March report. In the cash accounting scenario, this cost would not be recognized until
April.

1. Is this a problem?

2. How might this affect the decisions taken by the project manager?

3. What solutions can you think of to overcome any problems you identify?

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2.3 Reporting to Donor Agencies
Activity
Record your recommendations here regarding the MTTI budget monitoring report design.

1. What is the report content? Jot down your notes regarding the broad categories of content, as
well as what to include as columns and rows.

2. What is the level of detail of the report?

3. What is the reporting currency?

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4. What reporting frequency?

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Module Three
3.1 The Causes of Budget Variances
Reflection: Why Variances Happen
Take a minute to think in general terms about what has caused variances to happen in organizations you
have worked in. Try to come up with at least three different examples. Then, consider whether they
have anything in common.

3.3 Detecting Fraud through Budget Monitoring

Reflection: Detect Fraud at FITO
What red flags did you find when you examined the FITO budget monitoring report?

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Module Four
4.3 The Art of Budget Forecasting
Reflect on these questions

1. For line 4020 Smile Trust, see the column "Q4 forecast." Does the figure $10,625 in that
column make sense based on the notes? Why or why not?

2. What conclusions do you draw about the forecast results for total income? What actions
would you recommend taking?

3. Staff training is forecast to be over-spent by 161% and Recruitment by 114%. If you

were the program manager, what recommendations would you make to the project's
donors to finance these costs?

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4. Why is the 7510 Consultants fees budget at 75% utilization?

5. If you were one of the project's donors reading this report, what would you conclude
about the forecast results for the 7520 Food & accommodation and 7530 Training
materials budget lines?

6. The forecast is predicting a surplus of $7,345. Assuming the surplus is made up of

restricted funds, what does that mean for the project and what actions should they take
now?

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4.4 Module Wrap-Up
Reflection
Review your reasons for attending this workshop (recorded earlier in this journal). Did you find answers
to your questions, or solutions to your challenges? What are your thoughts now, looking back on that
first entry?

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Action Plan
Create a plan for incorporating what you have learned into your work. Complete this short action plan.

Now that you are almost at the end of this Budget Monitoring Essentials Workshop, reflect on what you
have covered and answer three simple questions as part of an action plan.

1. What is something that you will start doing?

2. What is something that you will continue doing?

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3. What is something that you will stop doing?

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