requests are compared against organizational goals, regulatory requirements, and available funding. Detailed meetings and discussions are held with departmental representatives to clarify assumptions and modify proposals as needed. Budget Approval: Once consolidated, the proposed budget is presented to the Board of Directors, where it must receive final approval. Upon approval, the budget is formalized and published, serving as the financial guideline for the upcoming fiscal year.
3.
4. Ongoing Monitoring and Variance Analysis:
During the fiscal year, actual financial performance is tracked against the approved budget. Variance analysis is conducted monthly and quarterly to identify deviations from the plan. Significant variances trigger immediate reviews to determine the root causes and to plan corrective actions if necessary. Variance analyses are shared with departmental heads to promote accountability and support informed adjustments. Budget Revisions and Forecasting: Should unexpected challenges or opportunities arise, a revised budget forecast is generated. This dynamic process allows for mid ‑ year adjustments while ensuring that regulatory compliance and strategic priorities remain intact. Revised forecasts are subject to internal review and, if major, may require Board notification.
5.
Roles and Responsibilities for Budget Development
Finance Department:
• Prepare and consolidate individual budget requests from all departments. • Coordinate the detailed analysis, variance analysis, and financial reporting. • Provide initial budget templates and guidance documents to all departments. • Monitor ongoing financial performance via digital dashboards and periodic reports.
Department Heads and Supervisors:
• Develop and submit comprehensive budget proposals for their respective departments. • Meet with the Finance Department to review proposed expenditures and justify each line item. • Implement approved budget plans and track expenses daily. • Participate in monthly variance analysis meetings and act on corrective recommendations.
Executive Leadership and Board of Directors:
• Set overarching financial goals and strategic priorities.
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