The document outlines the budgetary control policies and procedures for XYZ-LTD. It discusses the budgeting cycle which includes six phases: setting budget policy, preparation, authorization, implementation, reporting/monitoring, and review. It describes the responsibilities for budgeting and the general budget classifications of current/investment expenditures and receipts. The methods of budgeting are also discussed where branches must frame budgets based on planned outcomes rather than inputs.
Budgetary control has three main objectives: 1) to plan for and compare actual performance to standard performance, 2) to prepare budgets in advance to check the availability of finances, and 3) to serve as an essential management tool to control costs and maximize profits.
The steps in budgetary control include: 1) establishing budgets, 2) executing responsibilities to attain objectives, 3) continuously comparing actual to standard performance, and 4) taking corrective actions for any deviations.
Budgetary control requires determining objectives, responsibilities, key factors, periods, and forecasts in order to install an effective system for planning, coordination, and control across departments to achieve organizational goals.
The document discusses budgets and budgetary control. It provides definitions of budgets, including that a budget is a financial plan prepared in advance. It explains that budgets are prepared for key areas like purchases, sales, production, and cash. The cash budget estimates changes to the bank balance over the budget period. Benefits of budgets include assisting planning, communication, decision-making, and motivation. Limitations include potential inaccuracy and risk of demotivating staff.
Budgets are management's forecasts of revenues, expenses, and profits used for both decision making and control. They communicate planning assumptions, set resource guidelines, and are used to evaluate performance against targets. The budget process separates decision rights between managers who initiate budgets and directors who ratify and monitor them.
The document discusses budgets and budgetary control. It defines a budget as a detailed plan of operations for a future period that acts as a business barometer. Budgetary control involves establishing budgets relating to executive responsibilities and comparing actual results to budgets to motivate employees and secure objectives. The objectives of budgetary control include planning, communication, coordination, control, and motivation. Advantages are defining objectives, revealing variances, guiding executive action, and providing a basis for future budgets. Limitations include using estimates and continually adapting budgets. Budgets can be classified by time, function, and flexibility.
A budget is a plan for income and expenses over a defined period of time, expressed in monetary terms. It is prepared before the period begins. Budgeting provides benefits like control over money, awareness of finances, and early warnings about potential problems. Budgetary control involves implementing budgets and holding managers responsible. It establishes budgets for all organizational functions and continuously compares actual performance to the budget to identify variations and take corrective actions. The objectives of budgetary control include planning, coordination, communication, control, and performance evaluation.
The document discusses budgeting and budgetary control systems. It defines a budget as a financial plan that sets goals and allocates resources for an upcoming period. Budgetary control involves establishing budgets, comparing actual results to budgets, calculating variances, and taking corrective action. Corporate planning is a long-term strategic planning process, while budgeting translates long-term plans into short-term action plans. SWOT analysis and setting objectives are key steps in corporate planning. Budgeting motivates employees and allows comparison of actual results to plans.
This document provides information about budgets and budgetary control. It defines what a budget is, explains different types of budgets such as sales, production, purchase budgets. It also discusses budgetary control which involves establishing budgets, comparing actual performance to planned budgets, analyzing variances, and taking corrective actions. Finally, it classifies budgets according to time, function, and flexibility. Key types discussed are sales, production, purchase, cash budgets and how they are prepared. Budgets help management plan, control operations, and evaluate performance.
The document discusses budgeting and budgetary control. It defines budgeting as a formal financial planning process using estimated accounting data. Budgeting involves preparing budgets for various areas such as sales, production, marketing, and expenditures. Budgetary control involves comparing actual performance to the budget and taking corrective action for any deviations. Budgets can be fixed or flexible depending on the level of activity. The document outlines the purposes of budgeting as planning, coordination, communication, and control. It also discusses types of budgets, budgeting process, responsibilities, and short-term versus long-term budgets.
Budgetary control has three main objectives: 1) to plan for and compare actual performance to standard performance, 2) to prepare budgets in advance to check the availability of finances, and 3) to serve as an essential management tool to control costs and maximize profits.
The steps in budgetary control include: 1) establishing budgets, 2) executing responsibilities to attain objectives, 3) continuously comparing actual to standard performance, and 4) taking corrective actions for any deviations.
Budgetary control requires determining objectives, responsibilities, key factors, periods, and forecasts in order to install an effective system for planning, coordination, and control across departments to achieve organizational goals.
The document discusses budgets and budgetary control. It provides definitions of budgets, including that a budget is a financial plan prepared in advance. It explains that budgets are prepared for key areas like purchases, sales, production, and cash. The cash budget estimates changes to the bank balance over the budget period. Benefits of budgets include assisting planning, communication, decision-making, and motivation. Limitations include potential inaccuracy and risk of demotivating staff.
Budgets are management's forecasts of revenues, expenses, and profits used for both decision making and control. They communicate planning assumptions, set resource guidelines, and are used to evaluate performance against targets. The budget process separates decision rights between managers who initiate budgets and directors who ratify and monitor them.
The document discusses budgets and budgetary control. It defines a budget as a detailed plan of operations for a future period that acts as a business barometer. Budgetary control involves establishing budgets relating to executive responsibilities and comparing actual results to budgets to motivate employees and secure objectives. The objectives of budgetary control include planning, communication, coordination, control, and motivation. Advantages are defining objectives, revealing variances, guiding executive action, and providing a basis for future budgets. Limitations include using estimates and continually adapting budgets. Budgets can be classified by time, function, and flexibility.
A budget is a plan for income and expenses over a defined period of time, expressed in monetary terms. It is prepared before the period begins. Budgeting provides benefits like control over money, awareness of finances, and early warnings about potential problems. Budgetary control involves implementing budgets and holding managers responsible. It establishes budgets for all organizational functions and continuously compares actual performance to the budget to identify variations and take corrective actions. The objectives of budgetary control include planning, coordination, communication, control, and performance evaluation.
The document discusses budgeting and budgetary control systems. It defines a budget as a financial plan that sets goals and allocates resources for an upcoming period. Budgetary control involves establishing budgets, comparing actual results to budgets, calculating variances, and taking corrective action. Corporate planning is a long-term strategic planning process, while budgeting translates long-term plans into short-term action plans. SWOT analysis and setting objectives are key steps in corporate planning. Budgeting motivates employees and allows comparison of actual results to plans.
This document provides information about budgets and budgetary control. It defines what a budget is, explains different types of budgets such as sales, production, purchase budgets. It also discusses budgetary control which involves establishing budgets, comparing actual performance to planned budgets, analyzing variances, and taking corrective actions. Finally, it classifies budgets according to time, function, and flexibility. Key types discussed are sales, production, purchase, cash budgets and how they are prepared. Budgets help management plan, control operations, and evaluate performance.
The document discusses budgeting and budgetary control. It defines budgeting as a formal financial planning process using estimated accounting data. Budgeting involves preparing budgets for various areas such as sales, production, marketing, and expenditures. Budgetary control involves comparing actual performance to the budget and taking corrective action for any deviations. Budgets can be fixed or flexible depending on the level of activity. The document outlines the purposes of budgeting as planning, coordination, communication, and control. It also discusses types of budgets, budgeting process, responsibilities, and short-term versus long-term budgets.
Budgets are financial plans prepared in advance to help achieve objectives. There are various types including sales, production, cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, analyzing variances, and revising budgets. The key purposes of budgeting and budgetary control are planning, coordination, communication, motivation, control, and performance evaluation. It helps management anticipate the future, coordinate departments, pinpoint inefficiencies, and direct resources for maximum profit.
This document discusses budgeting in healthcare. It defines key terms like budget and budgeting. It explains the need for budgets in healthcare to communicate plans, monitor operations, reduce wastage, and assess manager performance. Different types of budgets are described based on time, function, and flexibility. Techniques like incremental, zero-based, performance, and planning-programming-budgeting systems are outlined. The challenges of budgeting in healthcare like intangible outcomes and increasing costs are also noted.
The document discusses various types of budgets used in budgetary control including: sales, production, cost of production, purchase, personnel, R&D, capital expenditure, cash, master, fixed, flexible, and zero-base budgets. It also discusses capital budgeting techniques for evaluating investment proposals including payback period, accounting rate of return, net present value, profitability index, and internal rate of return.
Budgeting is the formal process of preparing quantitative estimates of expected income and expenses for a defined period. A budget is a plan for how financial and operating resources will be used and obtained over a period. Budgets help management plan, motivate employees, evaluate performance, communicate goals, and coordinate activities. Common types of budgets include sales, production, materials purchasing, labor, and capital budgets. Budgets can be flexible or static depending on whether they vary with activity levels. Participative budgeting, frequent feedback, and realistic but challenging targets help ensure an effective budgeting process.
The document discusses budgets, including their definition, characteristics, types, and objectives. It provides details on types of budgets such as functional budgets, master budgets, and zero-base budgets. It also outlines the steps to installing a budget control system and lists the essentials of an effective budget control process. Key points include that a budget is a quantitative financial plan prepared in advance to achieve objectives, budgets are classified by function or in a master consolidated summary, and budgetary control involves establishing budgets, tracking actuals, analyzing variances, and revising budgets.
The document discusses budgeting and budgetary control. It defines a budget as a financial plan for a defined period. Budgets estimate profit potential, are stated in monetary terms, generally cover one year, and require management approval. The key aspects of budgets are setting objectives, understanding cost behavior, coordination, communication, flexibility, and accounting data support. Budgets are used for planning, coordination, responsibility assignment, performance evaluation, and adapting to changing conditions. Budgetary control involves establishing budgets, tracking actual performance, analyzing variances, and taking corrective actions.
Zero base budgeting is a managerial tool developed by Jimmy Carter in 1962 that begins the budgeting process from scratch each year without relying on previous year's budget. It focuses on evaluating the costs and benefits of individual programs, prioritizing activities, and allocating resources to activities based on their importance to organizational goals. The process involves listing objectives, deciding the scope, prioritizing activities, conducting cost-benefit analyses of decision packages, and selecting and approving the final budget. Zero base budgeting aims to optimize resource utilization and justify all expenditures, but it can be difficult and time-consuming to implement.
Budgets are estimates of income and expenses over a period of time used for planning and monitoring performance. There are different types of budgets such as operating, capital, and flexible budgets. The master budget aggregates all business activities into one comprehensive plan and includes the operating and financial budgets. Key components of the master budget include sales, production, materials, labor, overhead, and income statement budgets.
Budget & Budgetary Control in Business OrganizationsGabriel Ken
This document outlines the table of contents for a study on budgeting and budgetary control in business organizations, using Emenite Nigeria Ltd as a case study. The introduction provides background on budgets and budgetary control, and states the problem as budgets reflecting past data and inability to eliminate unpredictability in forecasting. The objectives are to examine the impact of budgets on business growth and their use for control and synchronization. Research questions and hypotheses are presented. The significance of the study and scope, focusing on Emenite Nigeria Ltd's budgeting system, are explained.
Budgeting involves creating detailed financial plans to help manage a business. The document defines budgets and discusses different types of budgets including sales, production, cost of production, purchase, personnel, research and development, capital expenditure, cash, master, fixed, flexible, and zero-base budgets. It also explains budgetary control as the process of establishing budgets, continuously comparing actual performance to budgets, and taking action based on any variances in order to meet organizational objectives or revise plans.
Budgeting. at District level and Managementa01071979
The document discusses budgeting, including definitions, significance, approaches, types of budgets, and the budgetary process. It outlines three common budgeting approaches - top-down, bottom-up, and iterative budgeting - and compares their merits and demerits. The document also discusses features of an effective budget, linking budgets to project activities through earned value analysis, and measures for budgetary control.
A cash budget forecasts estimated cash receipts, payments, and cash position over a period of time. It assists businesses in identifying when commitments are due to ensure money is available, reveals periods of excess or shortage of funds, and is often demanded by banks when businesses apply for loans to determine repayment capability. Cash budgets are a form of control that set targets to monitor employee work and investigate differences between actual and budgeted figures.
The document discusses key aspects of budgetary control systems. It defines a budget as a detailed plan for operations over a specific period of time. Budgetary control systems help businesses maximize profits and minimize costs by preparing proper forecasts and controlling costs. The document outlines various types of budgets including production, material, labor, overhead and cash budgets. It also discusses the objectives, advantages and disadvantages of budgetary control systems and classifications of budgets according to time and function. The master budget integrates all functional budgets into a consolidated budget representing the projected profit and loss statement and balance sheet.
This presentation discusses budgetary control. It defines a budget as a financial statement prepared for a definite future period to attain a given objective. Budgetary control involves establishing budgets, relating executive responsibilities to policy requirements, and comparing actual results to budgets. The presentation discusses installing a budgetary control system, including determining objectives and constraints, organizing budgeting responsibilities, setting the budget period, and reporting results. Budgetary control allows management to effectively utilize resources but relies on estimates that may not be achieved.
This document discusses budgeting and budgetary control. It defines a budget as a quantitative plan, usually monetary, for a specific time period, often one year. Budgets can be capital budgets for new projects or operating budgets for short-term goals. An effective budgetary control system involves preparing budgets, continuous comparison of actual to planned performance, and revising budgets as needed. Installing such a system requires determining objectives and constraints, and establishing an organization structure with a budget controller and committee responsible for the budget process.
CMA Part 1: Planning, Budgeting and Forecasting Mohsin Munir
This document provides an overview of Section A of the 2010 CMA Part 1 exam, which covers planning, budgeting, and forecasting. It discusses key topics that will be covered in this section, including planning concepts, types of budgets, budget methodologies, forecasting techniques, and standard costing. The document also summarizes best practices for budget development, characteristics of effective budgets, and considerations for setting standard costs for direct materials, direct labor, and overhead. It emphasizes the importance of linking budgets to company goals and objectives and involving managers in the budgeting process.
Budgetary control involves companies establishing budgets for revenue, expenses, assets and liabilities in advance of an accounting period. Managers prepare functional budgets for their departments, which are then combined into a master budget. Actual performance is continuously compared to budgets to ensure plans are achieved or provide a basis for revision. Budgetary control coordinates activities, provides responsibility accounting, motivates managers, and establishes a system for planning and control through regular budget reviews.
Budgetary Controlling Techniques Budgeting is the formulation of plans for a given future period in numerical terms. Organizations may establish budgets for units, departments, divisions, or the whole organization.
Budgetary Control Techniques
budgetary control methods
controlling techniques in management
planning tools for budgetary control
risk controlling techniques
control methods in management
control as a function of management pdf
controlling management process
organizational control methods
control methods in business
types of managerial control
examples of controlling in management
what is controlling in management
controlling in management pdf
managerial functions pdf
organizing function of management pdf
four functions of management pdf
management control system definition
introduction to management pdf
managerial function of control
the control function of management
Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.
The document discusses budgetary control and flexible budgets. It defines budgetary control as the establishment of budgets relating to executive responsibilities and requirements of policy, with the continuous comparison of actual to budgeted results to ensure objectives are met or require revision. Flexible budgets vary based on activity levels, like preparing budgets for production of 7,000 and 9,000 units based on variable and fixed cost schedules. Budgetary control involves planning, coordination, communication, and control to improve overall efficiency.
This document provides an overview of budgets and budgetary control. It defines a budget as a quantified financial plan for a defined future period. Budgets have benefits like helping control spending, focus on goals, and organize finances. The key types of budgets discussed include sales, production, costs, materials, purchases, labor, overhead, selling & distribution, administration, capital expenditures, and cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, and taking corrective action for variances. The objectives of budgetary control are planning, coordination, communication, motivation, control, and performance evaluation.
The document discusses strategic cost management (SCM) as an important tool for gaining competitive advantage. SCM analyzes costs in the broader context of a firm's overall value chain. It helps firms understand their cost structures to develop superior strategies. SCM uses tools like value chain analysis, activity-based costing, and analysis of cost drivers to examine how firms can configure activities to reduce costs or pursue different competitive strategies like cost leadership or differentiation.
Budgets are financial plans prepared in advance to help achieve objectives. There are various types including sales, production, cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, analyzing variances, and revising budgets. The key purposes of budgeting and budgetary control are planning, coordination, communication, motivation, control, and performance evaluation. It helps management anticipate the future, coordinate departments, pinpoint inefficiencies, and direct resources for maximum profit.
This document discusses budgeting in healthcare. It defines key terms like budget and budgeting. It explains the need for budgets in healthcare to communicate plans, monitor operations, reduce wastage, and assess manager performance. Different types of budgets are described based on time, function, and flexibility. Techniques like incremental, zero-based, performance, and planning-programming-budgeting systems are outlined. The challenges of budgeting in healthcare like intangible outcomes and increasing costs are also noted.
The document discusses various types of budgets used in budgetary control including: sales, production, cost of production, purchase, personnel, R&D, capital expenditure, cash, master, fixed, flexible, and zero-base budgets. It also discusses capital budgeting techniques for evaluating investment proposals including payback period, accounting rate of return, net present value, profitability index, and internal rate of return.
Budgeting is the formal process of preparing quantitative estimates of expected income and expenses for a defined period. A budget is a plan for how financial and operating resources will be used and obtained over a period. Budgets help management plan, motivate employees, evaluate performance, communicate goals, and coordinate activities. Common types of budgets include sales, production, materials purchasing, labor, and capital budgets. Budgets can be flexible or static depending on whether they vary with activity levels. Participative budgeting, frequent feedback, and realistic but challenging targets help ensure an effective budgeting process.
The document discusses budgets, including their definition, characteristics, types, and objectives. It provides details on types of budgets such as functional budgets, master budgets, and zero-base budgets. It also outlines the steps to installing a budget control system and lists the essentials of an effective budget control process. Key points include that a budget is a quantitative financial plan prepared in advance to achieve objectives, budgets are classified by function or in a master consolidated summary, and budgetary control involves establishing budgets, tracking actuals, analyzing variances, and revising budgets.
The document discusses budgeting and budgetary control. It defines a budget as a financial plan for a defined period. Budgets estimate profit potential, are stated in monetary terms, generally cover one year, and require management approval. The key aspects of budgets are setting objectives, understanding cost behavior, coordination, communication, flexibility, and accounting data support. Budgets are used for planning, coordination, responsibility assignment, performance evaluation, and adapting to changing conditions. Budgetary control involves establishing budgets, tracking actual performance, analyzing variances, and taking corrective actions.
Zero base budgeting is a managerial tool developed by Jimmy Carter in 1962 that begins the budgeting process from scratch each year without relying on previous year's budget. It focuses on evaluating the costs and benefits of individual programs, prioritizing activities, and allocating resources to activities based on their importance to organizational goals. The process involves listing objectives, deciding the scope, prioritizing activities, conducting cost-benefit analyses of decision packages, and selecting and approving the final budget. Zero base budgeting aims to optimize resource utilization and justify all expenditures, but it can be difficult and time-consuming to implement.
Budgets are estimates of income and expenses over a period of time used for planning and monitoring performance. There are different types of budgets such as operating, capital, and flexible budgets. The master budget aggregates all business activities into one comprehensive plan and includes the operating and financial budgets. Key components of the master budget include sales, production, materials, labor, overhead, and income statement budgets.
Budget & Budgetary Control in Business OrganizationsGabriel Ken
This document outlines the table of contents for a study on budgeting and budgetary control in business organizations, using Emenite Nigeria Ltd as a case study. The introduction provides background on budgets and budgetary control, and states the problem as budgets reflecting past data and inability to eliminate unpredictability in forecasting. The objectives are to examine the impact of budgets on business growth and their use for control and synchronization. Research questions and hypotheses are presented. The significance of the study and scope, focusing on Emenite Nigeria Ltd's budgeting system, are explained.
Budgeting involves creating detailed financial plans to help manage a business. The document defines budgets and discusses different types of budgets including sales, production, cost of production, purchase, personnel, research and development, capital expenditure, cash, master, fixed, flexible, and zero-base budgets. It also explains budgetary control as the process of establishing budgets, continuously comparing actual performance to budgets, and taking action based on any variances in order to meet organizational objectives or revise plans.
Budgeting. at District level and Managementa01071979
The document discusses budgeting, including definitions, significance, approaches, types of budgets, and the budgetary process. It outlines three common budgeting approaches - top-down, bottom-up, and iterative budgeting - and compares their merits and demerits. The document also discusses features of an effective budget, linking budgets to project activities through earned value analysis, and measures for budgetary control.
A cash budget forecasts estimated cash receipts, payments, and cash position over a period of time. It assists businesses in identifying when commitments are due to ensure money is available, reveals periods of excess or shortage of funds, and is often demanded by banks when businesses apply for loans to determine repayment capability. Cash budgets are a form of control that set targets to monitor employee work and investigate differences between actual and budgeted figures.
The document discusses key aspects of budgetary control systems. It defines a budget as a detailed plan for operations over a specific period of time. Budgetary control systems help businesses maximize profits and minimize costs by preparing proper forecasts and controlling costs. The document outlines various types of budgets including production, material, labor, overhead and cash budgets. It also discusses the objectives, advantages and disadvantages of budgetary control systems and classifications of budgets according to time and function. The master budget integrates all functional budgets into a consolidated budget representing the projected profit and loss statement and balance sheet.
This presentation discusses budgetary control. It defines a budget as a financial statement prepared for a definite future period to attain a given objective. Budgetary control involves establishing budgets, relating executive responsibilities to policy requirements, and comparing actual results to budgets. The presentation discusses installing a budgetary control system, including determining objectives and constraints, organizing budgeting responsibilities, setting the budget period, and reporting results. Budgetary control allows management to effectively utilize resources but relies on estimates that may not be achieved.
This document discusses budgeting and budgetary control. It defines a budget as a quantitative plan, usually monetary, for a specific time period, often one year. Budgets can be capital budgets for new projects or operating budgets for short-term goals. An effective budgetary control system involves preparing budgets, continuous comparison of actual to planned performance, and revising budgets as needed. Installing such a system requires determining objectives and constraints, and establishing an organization structure with a budget controller and committee responsible for the budget process.
CMA Part 1: Planning, Budgeting and Forecasting Mohsin Munir
This document provides an overview of Section A of the 2010 CMA Part 1 exam, which covers planning, budgeting, and forecasting. It discusses key topics that will be covered in this section, including planning concepts, types of budgets, budget methodologies, forecasting techniques, and standard costing. The document also summarizes best practices for budget development, characteristics of effective budgets, and considerations for setting standard costs for direct materials, direct labor, and overhead. It emphasizes the importance of linking budgets to company goals and objectives and involving managers in the budgeting process.
Budgetary control involves companies establishing budgets for revenue, expenses, assets and liabilities in advance of an accounting period. Managers prepare functional budgets for their departments, which are then combined into a master budget. Actual performance is continuously compared to budgets to ensure plans are achieved or provide a basis for revision. Budgetary control coordinates activities, provides responsibility accounting, motivates managers, and establishes a system for planning and control through regular budget reviews.
Budgetary Controlling Techniques Budgeting is the formulation of plans for a given future period in numerical terms. Organizations may establish budgets for units, departments, divisions, or the whole organization.
Budgetary Control Techniques
budgetary control methods
controlling techniques in management
planning tools for budgetary control
risk controlling techniques
control methods in management
control as a function of management pdf
controlling management process
organizational control methods
control methods in business
types of managerial control
examples of controlling in management
what is controlling in management
controlling in management pdf
managerial functions pdf
organizing function of management pdf
four functions of management pdf
management control system definition
introduction to management pdf
managerial function of control
the control function of management
Presentation on Budget, budgeting and budgetary control..
Contents-
1) Budgeting [characteristics]
2) Budgetary control
3) Difference in budget, budgeting, budgetary control
4) Essentials in budgetary control
5) Requisites for budgetary control system
6) Merits & limitations
7) Zero-based budgeting
8) Difference in Traditional & Zero based budgeting.
The document discusses budgetary control and flexible budgets. It defines budgetary control as the establishment of budgets relating to executive responsibilities and requirements of policy, with the continuous comparison of actual to budgeted results to ensure objectives are met or require revision. Flexible budgets vary based on activity levels, like preparing budgets for production of 7,000 and 9,000 units based on variable and fixed cost schedules. Budgetary control involves planning, coordination, communication, and control to improve overall efficiency.
This document provides an overview of budgets and budgetary control. It defines a budget as a quantified financial plan for a defined future period. Budgets have benefits like helping control spending, focus on goals, and organize finances. The key types of budgets discussed include sales, production, costs, materials, purchases, labor, overhead, selling & distribution, administration, capital expenditures, and cash budgets. Budgetary control involves establishing budgets, comparing actuals to budgets, and taking corrective action for variances. The objectives of budgetary control are planning, coordination, communication, motivation, control, and performance evaluation.
The document discusses strategic cost management (SCM) as an important tool for gaining competitive advantage. SCM analyzes costs in the broader context of a firm's overall value chain. It helps firms understand their cost structures to develop superior strategies. SCM uses tools like value chain analysis, activity-based costing, and analysis of cost drivers to examine how firms can configure activities to reduce costs or pursue different competitive strategies like cost leadership or differentiation.
Budgeting faces several challenges: (1) estimating an uncertain future, (2) gaining buy-in from budget holders, and (3) responding to unplanned changes. To overcome these, companies use flexible budgets, involve stakeholders, and regularly update budgets. Effective budgeting requires open communication and adapting to new information.
I audit report warborough final 2013-14John Bradshaw
This internal audit report summarizes the findings of an audit of Warborough & Shillingford Parish Council's financial controls for 2013-14. The audit found the council's bookkeeping, payments, budgeting, income collection, payroll, assets, bank reconciliation, and accounting statements to be adequate and following proper procedures. All recommendations from previous audits had been addressed. The internal controls were deemed effective and the financial statements accurately portrayed the council's position.
THE ROLE OF BUDGET AND BUDGETARY CONTROL ON ORGANISATIONAL PERFORMANCE: A CAS...AM Publications,India
Budgeting is an indispensable tool in the hospitality industry-which has profit maximization as its goal and this can only be realized when resources are properly planned and controlled with the required commitment and expertise. Hotel accommodation in Nigeria is facilitated mostly by the corporate sector, with booking for conferences and meetings demand being highest. Whilst there has been rapid growth in the Nigerian hotel industry in the last decade, it is still in its infancy as the National Bureau for Statistics (2013) posited that the hotels and restaurant sub-sector contributes a mere 0.55 per cent to the Gross Domestic product (GDP). However, the major reason for this insignificant contribution to the GDP has been linked to poor budgeting process and internal control within the players in the industry. This paper therefore researched into the role of budget and budgetary control on organizational performance: a case study of Tahir Guest Palace, Kano. The study made use of both the primary and the secondary data. The instrument for the collection of the primary data was the questionnaire administered, while the secondary data was obtained via the financial statements of Tahir Guest Palace from 2007-2012. A total of 278 staff was sampled using the purposive sampling technique, and data obtained was subjected to regression analysis.Result revealed that budget administration, budget target setting and budget process all have significant impact on organizational performance. The research work therefore, recommend that; (i) the top level management of Tahir guest palace should maintain appropriate standard on budget administration and preparation, and budget process. Specifically, the use of the current budget process on previous budget performance should be emphasized in measuring performance year in year out, as this will enable the management to monitor the organizational growth and or performance as budgeted; (ii) the staff of various cadres at Tahir guest palace should also be allowed to participate in the budget target setting and process to further enhance the organizational performance. If the above recommendations are implemented it will not only increase the organizational performance of Tahir Guest Palace but will also lead to increase in subordinates efforts and task performance.
Budgetary control is a system that uses budgets to plan and evaluate performance according to budgeted goals. It involves planning, controlling, coordinating, recording, and following up on budgets. Successful budgetary control requires clarifying objectives, delegating authority and responsibility, proper communication, budget education, participation, and flexibility. The objectives of budgeting and budgetary control are to pre-determine capital expenditures, plan and control income and expenses, operate divisions efficiently, smooth seasonal variations, and obtain economical use of capital.
budget budgeting and budgetary controlKajal Sharma
Budgetary control is an important management technique that involves planning, implementing, and evaluating business activities based on a pre-prepared budget. It helps balance expenses with income. A budget is a summary of expected income and expenses for a defined future period, expressed in monetary terms, and prepared before that period begins. Budgetary control has advantages like enhanced efficiency, coordination, and profit maximization, but also limitations such as being based on estimates and potentially hindering flexibility. For an effective budgetary control system, certain prerequisites must be in place, including clear roles and responsibilities, well-defined objectives and policies, a budget committee, and accounting and communication systems.
Budgeting serves as a plan and control document for organizations. It involves strategic planning, planning, implementation, and controlling. There are five key dimensions of budgeting: participation, budget models, budget detail, budget forecast, and budget modification. The major types of budgets are statistics budgets, operating budgets, cash budgets, and capital budgets. Statistics budgets identify the amount of services provided, operating budgets combine revenue and expenses, cash budgets track cash inflows and outflows, and capital budgets summarize major purchases.
The document discusses key aspects of the Philippine Administrative System (PAS) including:
1) PAS refers to a network of public organizations that implement policies through defined structures, rules, and goals while interacting with the socio-political environment.
2) Components of PAS include public organizations, internal procedures, policy implementation, serving different clientele, and operating within the larger socio-economic system.
3) The budget cycle in PAS includes budget preparation by agencies under budget parameters set by the Development Budget Coordination Committee, approval by the President and Cabinet, and execution and accountability.
Chapter 2: Health Care Financial StatementsNada G.Youssef
This document provides an overview of key financial statements and accounting principles for health care entities. It discusses the balance sheet, statement of operations, and accounting standards set by FASB, GASB and GAAP. The balance sheet presents assets, liabilities and net assets at a point in time. The statement of operations summarizes revenues and expenses over an accounting period using the accrual basis. The document also provides examples of components that make up each statement.
This document discusses sales budgeting, forecasting, and control. It covers developing sales budgets to plan and coordinate sales, types of budgets including sales, selling expense, and administrative budgets. Forecasting methods like macro, micro, qualitative, and quantitative are described. Sales forecasting is used for production scheduling, pricing, promotion, and financial planning. Control involves setting standards, evaluating performance, and correcting deviations to optimize sales, profits, and revenue.
This document discusses budgeting and budgetary control. It defines a budget as an estimate of future costs and revenues over a period of time, and explains that budgets help prioritize spending, identify waste, and achieve financial goals. Budgetary control involves comparing actual performance to planned budgets and taking corrective actions when there are variances. The objectives of budgetary control are planning, coordination, and control. Managers use budgetary controls for financial forecasting, budgeting, and variance analysis to control project expenses. The key aspects of an effective budgetary control system are preparation of budgets, continuous comparison of actuals to plans, revision of budgets, and control reports.
The document defines what a budget is according to various sources and provides details about the key components of a government budget. A budget is a financial plan that estimates revenues and expenditures for a set period, usually a year. It includes estimates of taxes, borrowing, expenditures on programs and services. The budget helps allocate resources and implement economic policies.
Report Writing - Conclusions & Recommendations sectionsSherrie Lee
The document discusses conclusions and recommendations sections of reports. It explains that conclusions should logically summarize the findings and lead into recommendations. Recommendations must flow logically from conclusions, be relevant to the purpose, and feasible to implement. The document provides examples of writing conclusions and recommendations for a report on issues at a polytechnic canteen and reasons for a decline in usage. It emphasizes that recommendations should be brief, clear, and precise based on sufficient analysis.
The document discusses the typical parts and structure of a report. It outlines the key sections as the title page, table of contents, executive summary, introduction, findings, conclusions, recommendations, bibliography/references, and appendices. It focuses on explaining the introduction section in detail. The introduction typically includes the purpose, background, method of investigation, and scope. It provides examples and emphasizes using the present tense for purpose and past tense for background. The method discusses primary and secondary sources of data.
Cost & Managerial Accounting Budgeting TechniquesFahad Ali
The document discusses budgets and budgetary control in businesses. It defines budgets as quantitative plans for resource utilization over a specific period, usually a year. Budgets are important tools for financial planning, control, and evaluating performance. There are various types of budgets, including sales, production, materials, labor, overhead, and cash budgets. Budgetary control involves continuous comparison of actual to planned performance and revision of budgets based on changes. An effective budgetary control system requires establishing organizational responsibility, developing budget procedures and manuals, and choosing between fixed and flexible budgets.
This document summarizes the key aspects of budget preparation including:
1. The nature and purpose of budgets as management planning and control tools that estimate profit potential and are stated in monetary terms for a one-year period.
2. The budget preparation process involving the budget department establishing guidelines and coordinating with managers to develop budgets that are then reviewed and approved by senior management.
3. The types of budgets including operating, capital, balance sheet and cash flow budgets, and how operating budgets categorize revenues, expenses, production costs and more for responsibility centers.
This document provides an overview of budgeting in nursing practice. It defines key terms like budget and discusses the purposes, principles, types, and process of budgeting. Some main points:
- A budget translates plans into monetary requirements and allows for control and evaluation of financial goals. It involves planning, implementation, and evaluation stages.
- Budgets can be classified as master/functional, capital/revenue, long-term/short-term, and fixed/flexible depending on their coverage, nature, period, and flexibility.
- The budgeting process involves assessing needs, developing a plan, implementing it with ongoing monitoring, and evaluating results periodically to allow for modifications.
- Formulating, reviewing
The document defines budgets and budgetary control. It states that a budget is a financial plan for a defined future period that is used for planning, performance evaluation, and control. Budgetary control involves establishing budgets for departments, continuously comparing actual performance to budgets, analyzing variations, and taking corrective actions. The document also discusses the objectives, essentials, and preliminary steps in installing an effective budgeting system, including creating budget centers and a budget committee. It describes different types of functional and master budgets.
The document provides information about various types of budgets including union budget, zero-based budgeting, capital budget, revenue budget, and performance budgeting. It also discusses the budgetary process and roles of key stakeholders. The main points are:
1) It defines key terms like union budget, zero-based budgeting, capital budget, and revenue budget and describes their main features and purposes.
2) It explains the steps involved in budget preparation from estimation to approval and the roles of administrator, governing body, budget director, and department heads.
3) It discusses the purposes and types of audits including external, internal, financial, operational, and compliance audits and their roles in budget oversight.
The document discusses different types of budgets and costs. It defines budgets as financial plans for a defined period, usually a year, based on expected income and expenses. It outlines various types of budgets such as master and functional budgets, capital and revenue budgets, long-term and short-term budgets, and fixed and flexible budgets. It also defines different types of costs such as fixed costs, variable costs, sunk costs, and direct vs indirect costs. The document provides examples and explanations of each concept.
The document discusses the key stages in the budgeting process, including communication, determining limiting factors, preparing the sales budget and other functional budgets, negotiating budgets with supervisors, reviewing budgets, and finalizing the master budget. It also covers topics like fixed and flexible budgets, zero-based budgeting, and the role of budgetary control in planning, coordination, communication, motivation, and performance evaluation.
The document discusses budgeting and budget committees. It states that budget committees are typically responsible for budget direction and execution, and usually report to top management. They include managers from various departments. The principal functions of budget committees are to decide company policies and objectives, review and approve department budgets, and analyze performance reports. The document also discusses budget manuals, budget periods, short-range budgets covering 3-12 months, and long-range budgets covering specific areas like future sales and capital expenditures.
In modern industrial economies, the budget is the key instrument for the execution of government economic policies. A government budget is often passed by the legislature, & approved by the chief executive-or president. For example, only certain types of revenue may be imposed & collected. Property tax is frequently the basis for municipal & county revenues, while sales tax &/or income tax are the basis for state revenues, & income tax & corporate tax are the basis for national revenues.
- A budget is a financial plan for anticipated expenses. Budgetary control involves preparing budgets, comparing actual to budgeted figures, and addressing deviations to improve planning and coordination.
- The objectives of budgetary control include planning income/expenses, controlling costs, coordinating activities, establishing accountability, and improving efficiency.
- Budgets can be classified by time (long, short, current), flexibility (fixed vs flexible), and function (sales, production, materials, labor, overhead). Zero-base budgeting periodically re-evaluates budget needs rather than incremental changes.
The document provides information about budgets, budgeting, and budgetary control. It defines a budget as a financial plan for a defined period of time. It explains that budgets involve planning, forecasting, control, and evaluation. Budgets are used to measure success, control costs, provide targets, focus on underperforming areas, and encourage efficiency. The document also discusses different types of budgets like production, sales, purchase, personnel budgets. It covers the budgeting process and limitations of budgets. Finally, it explains zero base budgeting.
The document outlines the budget process and preparation steps for the Department of Education in the Philippines. It discusses:
1) The budget preparation begins in December with a call from the Department of Budget and Management. Each department prepares estimates following DBM guidelines.
2) Departments must submit budget requests with objectives, expenditures, programs and projects, staffing plans, and other required information.
3) The budget undergoes legislative authorization through hearings and debates. It details issues that can arise like inaccuracy, rigid decision making, and a focus only on financial outcomes rather than other priorities.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, and debt management. Specifically, it notes that the treasury must supervise all central government bank accounts. Financial planning includes preparing annual cash plans, monthly cash plans, and in-month forecasts to ensure cash flows align with budgets. Debt management policies aim to finance deficits and minimize borrowing costs, while promoting transparency and predictability.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, debt management, and monitoring borrowings by sub-national governments. As an example, it summarizes how Kyrgyz built a treasury system after the Soviet Union collapsed, establishing a Treasury Single Account and payment system to enhance fiscal control and cash management.
This chapter discusses the budget cycle process, which includes executive preparation, legislative approval, budget execution, and audit/evaluation phases. It identifies the key individuals involved in each phase, such as the chief executive who sets policy priorities, budget officers who analyze spending requests, and agency directors who submit budget justifications. The chapter also contrasts political versus technical approaches to defending a budget proposal and emphasizes presenting spending requests that align with organizational goals and priorities.
The document discusses treasury management and debt management. It covers managing government bank accounts, financial planning and forecasts, and debt management. Key points include that the treasury must oversee all central government bank accounts. Financial planning requires preparing annual cash plans, monthly cash forecasts, and in-month estimates. Debt management policies aim to finance budget deficits at lowest cost while maintaining transparency.
This document provides consolidated interim financial statements for Hyundai Capital Services, Inc. and subsidiaries for the period ending March 31, 2022. It includes a report from an independent accounting firm stating they conducted a review and found the financial statements present fairly the financial position of the company. The financial statements include a consolidated statement of financial position, consolidated statements of comprehensive income, consolidated statements of changes in equity, and consolidated statements of cash flows, along with accompanying notes.
This document discusses budgetary control and classification of budgets. It covers the following key points:
Budgets can be classified according to time (short-term, long-term, current, rolling), functions (sales, production, cost of production, cash, R&D), purpose (program, responsibility, financial, zero-based), and flexibility. Common budgets include the master budget, operating budget, and responsibility budget.
Effective budgetary control requires establishing an organization structure with defined budget centers and officers, a budget committee, budget manual, budget period, and consideration of key factors. Budgets are an important planning and performance evaluation tool.
Similar to Budgetary control accounting system (20)
5 Tips for Creating Standard Financial ReportsEasyReports
Well-crafted financial reports serve as vital tools for decision-making and transparency within an organization. By following the undermentioned tips, you can create standardized financial reports that effectively communicate your company's financial health and performance to stakeholders.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
办理美国UNCC毕业证书制作北卡大学夏洛特分校假文凭定制Q微168899991做UNCC留信网教留服认证海牙认证改UNCC成绩单GPA做UNCC假学位证假文凭高仿毕业证GRE代考如何申请北卡罗莱纳大学夏洛特分校University of North Carolina at Charlotte degree offer diploma Transcript
Optimizing Net Interest Margin (NIM) in the Financial Sector (With Examples).pdfshruti1menon2
NIM is calculated as the difference between interest income earned and interest expenses paid, divided by interest-earning assets.
Importance: NIM serves as a critical measure of a financial institution's profitability and operational efficiency. It reflects how effectively the institution is utilizing its interest-earning assets to generate income while managing interest costs.
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Abhay Bhutada, the Managing Director of Poonawalla Fincorp Limited, is an accomplished leader with over 15 years of experience in commercial and retail lending. A Qualified Chartered Accountant, he has been pivotal in leveraging technology to enhance financial services. Starting his career at Bank of India, he later founded TAB Capital Limited and co-founded Poonawalla Finance Private Limited, emphasizing digital lending. Under his leadership, Poonawalla Fincorp achieved a 'AAA' credit rating, integrating acquisitions and emphasizing corporate governance. Actively involved in industry forums and CSR initiatives, Abhay has been recognized with awards like "Young Entrepreneur of India 2017" and "40 under 40 Most Influential Leader for 2020-21." Personally, he values mindfulness, enjoys gardening, yoga, and sees every day as an opportunity for growth and improvement.
Independent Study - College of Wooster Research (2023-2024) FDI, Culture, Glo...AntoniaOwensDetwiler
"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
My study abroad in Bali, Indonesia, inspired this research topic as I noticed how globalization is changing the culture of its people. I learned their language and way of life which helped me understand the beauty and importance of cultural preservation. I believe we could all benefit from learning new perspectives as they could help us ideate solutions to contemporary issues and empathize with others.
New Visa Rules for Tourists and Students in Thailand | Amit Kakkar Easy VisaAmit Kakkar
Discover essential details about Thailand's recent visa policy changes, tailored for tourists and students. Amit Kakkar Easy Visa provides a comprehensive overview of new requirements, application processes, and tips to ensure a smooth transition for all travelers.
South Dakota State University degree offer diploma Transcriptynfqplhm
办理美国SDSU毕业证书制作南达科他州立大学假文凭定制Q微168899991做SDSU留信网教留服认证海牙认证改SDSU成绩单GPA做SDSU假学位证假文凭高仿毕业证GRE代考如何申请南达科他州立大学South Dakota State University degree offer diploma Transcript
The Universal Account Number (UAN) by EPFO centralizes multiple PF accounts, simplifying management for Indian employees. It streamlines PF transfers, withdrawals, and KYC updates, providing transparency and reducing employer dependency. Despite challenges like digital literacy and internet access, UAN is vital for financial empowerment and efficient provident fund management in today's digital age.
Discover the Future of Dogecoin with Our Comprehensive Guidance36 Crypto
Learn in-depth about Dogecoin's trajectory and stay informed with 36crypto's essential and up-to-date information about the crypto space.
Our presentation delves into Dogecoin's potential future, exploring whether it's destined to skyrocket to the moon or face a downward spiral. In addition, it highlights invaluable insights. Don't miss out on this opportunity to enhance your crypto understanding!
https://36crypto.com/the-future-of-dogecoin-how-high-can-this-cryptocurrency-reach/
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
2. 3 Budgetary Control
3.1 Introduction
3.1.1.1 Within the Law Firm, the Budget is an instrument by which the XYZ Ltd expresses its
priorities and allocates resources to implement its policies. The Budget is a tool by which
planned expenditures are controlled, at all branches of XYZ Ltd, including spending
units/practice areas.
3.1.1.2 The Budget applies to the projected revenues, capital revenue, and partner’s injections.
3.1.1.3 Sichangi Partners Advocate branches, units and practice areas are required annually to
present to the EXCOM, projection of estimated receipts and expenditure for the
forthcoming financial year. This is referred to as the Annual Budget projection statement.
This statement indicates separately the sums required to meet expenditure charged by
Sichangi Partner branches, units and practice areas.
3.1.1.4 The budgeting cycle consists of six phases broadly categorized as follows:
Setting of budget policy and initiatives: the EXCOM meets to determine budget
policy, initiatives and priorities. These are then communicated to branches via
Partner in Charge, of Branches and units through the Finance Department for
XYZ Ltd.
Preparation: this stage includes the preparation and submission of budget
estimates of expenditure and receipts by branches, units and practice areas
(entities) and subsequent review and consolidation of estimates by the
Accounting Department.
Authorisation: this stage involves submission of the Master Budget Statement
before the EXCOM. This consists of two stages; approval by the EXCOM, and
authentication by the CEO. The approved budget is referred to as the
‘Authorized Expenditure’.
Implementation: this stage refers to the communication of the budgets to the
spending branches, units and practice areas through the Finance Department. On
implementation of the Budget, the branches, units, practice areas (entity) can
carry out activities and incur expenditure, for which funding has been given in
that period.
Reporting and Monitoring: actual revenues and expenditures (including
commitments) are recorded and reported to monitor progress against budget
throughout the financial year. Reporting assists management
in decision making and in particular re-allocation of funds where required. This
includes the provision of both internal and external reports.
Review: the periodical review of financial performance and the achievement of
policy objectives by spending entities and external authorized persons. This
includes audit activities and review by Accounting and Audit Committee. At
year end outstanding commitments are reviewed and budget provision (through
supplementary funds) made for the following year. For Revised Budget
Estimates see 3.3.5.3 and 3.3.13
Budgeting Policies- Final Copy/Jan 2012 Page 2
3. 3.1.1.5 The budgetary cycle is represented in the following diagram.
Overview of the Sichangi Partners, Budgetary Cycle
Note:
** Cash Budget Exempt**
Preparation
Policy Setting Authorisation
Review Implementation
Reporting and Monitoring
Budgeting Policies- Final Copy/Jan 2012 Page 3
4. 3.2 General Policies
3.2.1 Responsibilities for budgeting
3.2.1.1 Spending branches, units and practice areas are responsible for the preparation of their
own budget estimates. In each branch there is an accountant who is under the
administrative control of the Finance Department. This Accountant/Accounts assistant
guides the preparation of estimates by spending (entities) branch/Units and co-ordinates
the budget with the Finance Department and various other teams as required throughout
the budget cycle.
3.2.1.2 A number of Sichangi Partners Advocate teams (entities) provide support during the
budget process. These include various committees responsible for the review and
approval of budget proposals (as nominated from time to time by the CEO), including:
the Partner
the FINANCE OFFICER
the SCASS Governance Resource
3.2.2 General budget classifications
3.2.2.1 The estimates provided in the Master Budget Projection Statement must be shown in
accordance with financial accounting reporting standard requirements. Under the
financial reporting standard the budget estimates must show separately:
The sums required to meet expenditure charged upon the Law Firm Revenue
Fund (refer to Direction 3.4.2.1. for a list of items included as charged
expenditures)
The sums required to meet other expenditure, other than charged, proposed to
be made from the same revenue and capital funds.
3.2.2.2 Within these overall requirements, spending branches/units and practice areas are
required to submit budget estimates in prescribed classifications. On the expenditure
side, separate estimates are prepared for current and investment expenditures. Separate
forecasts are also prepared for receipts. The classification of current and investment
needs to be sub -classified into their Kenya Shillings and Foreign Exchange components
both denominated in Kenya Shillings.
3.2.2.3 Non-Investment expenditures refer to the on-going administrative Operations (recurrent)
within branches, units and practice areas, in fulfilling its policy objectives. These include
salaries and allowances of Partners, Associates, Legal Assistants, and paralegal staffs.
There are two types of recurrent budget; permanent and temporary:
Permanent budget: these are recurrent expenditures that have previously been
approved and are continuing. These include permanent staffing establishments,
travelling, fixed allowances and contingent expenditure. This is submitted as the
‘Part I’ budget
Temporary budget: these are new items of recurrent expenditure such as
temporary additions to existing establishments or services that have either
continued on from year to year on a temporary basis or have been newly
sanctioned and not included in the current year’s budget. This is submitted as
the ‘New Items Statement’ (NIS) or ‘Part II’ budget.
Budgeting Policies- Final Copy/Jan 2012 Page 4
5. 3.2.2.4 Investment Expenditure refers to activities conducted and managed distinctly as the law
firm business initiatives, with finite start and end dates and clearly specified deliverables.
Investment Initiatives typically involve the construction or improvement of physical
assets or the development of human resources. Investment Initiatives are submitted as
‘New Item Statements’. Investment budgets should have a flow-on effect to the recurrent
budget. When a Investment Initiative is completed it should result in new items of
recurrent expenditure, such as salaries, maintenance and utilities.
3.2.2.5 Forecasts (Projection) of revenue shall be prepared by those entities responsible for
administration of those revenues. This includes Finance Department, and Unit areas
(entities) within Sichangi Partners Advocate Branches.
3.2.3 Method of budgeting
3.2.3.1 The method used by Branches and Units for preparing budget estimates will be
determined by the Finance Department. Irrespective of the type of expenditure or
method of budgeting used, the estimates provided to the Finance Department must be
fully substantiated.
3.2.3.2 Branches and their subordinate spending Units (entities0 should frame their budgets
according to planned outcomes and not inputs. For example, Branches should first
consider what outcomes it wishes to achieve against a particular Service Line/ Practice
Area or Unit, rather than how many new staff it wishes to employ. Investment and
recurrent budget estimates should be considered jointly, in order to determine whether
the planed outcomes of the entity (and those of the law firm as a whole), can be met.
3.2.3.3 Estimates of expenditure are to be provided on a cash basis, that is, expenditure incurred
when payment is made within the financial year. This is consistent with the accounting
policy for the recognition of expenditure.
3.2.3.4 Forecasts of revenue are to be prepared on a cash basis, that is, based on what can
reasonably be expected to be paid and collected in the financial year. This will be
calculated from prior year collection figures, adjusted for changes in revenue collection
policy. The forecasts will be provided in gross amounts (e.g. revenues will not be shown
net of any related costs). This is also consistent with the related accounting policy for the
recognition of revenues.
3.2.4 Master Budget format
3.2.4.1 The format by which budget estimates are to be submitted, consolidated and ultimately
presented before the EXCOM and to Partners In charge will be the same, as determined
by Finance Department, in consultation with the respective branch.
3.2.4.2 The budget will be compiled to be consistent with the Chart of Accounts specifications.
Budgeting Policies- Final Copy/Jan 2012 Page 5
6. 3.3 Detailed Procedures
3.3.1 Introduction
3.3.1.1 This section describes steps to be followed in the budgetary procedure, based on the
components of the budgetary cycle as outlined in the Introduction (Direction 3.1.1.4).
3.3.1.2 These procedures refer to the budgeting process in general and, unless otherwise
specified are applicable to all spending entities. Branches and units will ensure
procedures for the collections of subsidiary details and the preparation and scrutiny of
budget estimates are laid down in regulations of the law firm branches and units.
3.3.1.3 From time to time the Accounting Department will issue orders pertaining to budgetary
procedures. These include specific orders for a financial year or a particular class of
expenditure. Such instructions are to be followed in conjunction with the procedures
contained in this Manual.
3.3.1.4 The following key controls are essential to the budgeting process:
all budget estimates for a branch or unit must be reviewed and signed off by the
Partner In charge before it is submitted to the Finance Department
all budget estimates for a branch or unit must be approved and signed off as
evidence by the Partner In Charge before it is submitted to the Finance
Department
budget estimates and supporting schedules must be prepared in a prescribed
format
the budgets must be authorised by the EXCOM
authorised budgets must be communicated to the FINANCE OFFICER so that a
complete record is maintained for verification and authorisation of payment
the Finance Department must communicate the authorized budgets to the
spending branches and units through release letters
The Branch Accountant/ Assistants for each entity (branch/units) must monitor
actual transactions against budget.
Budgeting Policies- Final Copy/Jan 2012 Page 6
7. 3.3.2 Budgeting procedure – overview
Expenditure Branch/Units Revenue Collection
Prepare
Estimate: Prepare Prepare
Prepare
Permanent Estimate: Estimate:
Preliminary Est.:
Temporary Investment
Revenue
BAA
Examine Current Examine Current Examine
Estimate Estimate Examine
Investment
Revenue
Estimate
Estimate
Approved:
Finance Officer Submit Budget
Order Submit New Item Submit
Statements Preliminary Final
Revenue
Estimate
Determine Size
of Investment to
take
Review Current
Review
Estimate- BMPs Review Final
Investment
Priorities- BMPs Revenue
Estimate- BMPs
Prepare
Prepare Expenditure Prepare Consolidated
Expenditure on Estimates of Revenues
Revenue on capital Account
(Receipt)
The Budget- Custody of Partner In charge of Finance
Scheduled for Authorization
Update
Accounting and FO Communicate Budget to EXCOM Approval: EXCOM
Funds Control Branches/Units Authenticated: Partners
Budgeting Policies- Final Copy/Jan 2012 Page 7
8. 3.3.3 Policy setting and issue of Budget Circular
3.3.3.1 Each year, the EXCOM must meet and set out the budget policy, including new
initiatives, targets and priorities. The budget policy will establish the planned surplus or
deficit, with underlying assumptions on economic growth, inflation and other planning
parameters.
3.3.3.2 After the EXCOM has set the budget policy, the Finance Department will prepare and
issue the Budget Circulars. This document sets out the timetable in which budget
estimates are to be provided by the spending branches /Units and any other relevant
instructions to be followed.
3.3.3.3 The deadlines for submission of estimates shown in the following sections are Indicative
only, as they will vary from year to year and between branches circumstances. In all cases
the dates shown in the Budget Circular shall be adhered to.
3.3.4 Preparation of Recurrent Budget
3.3.4.1 After the Budget Circular is issued, the law firm branches and units shall prepare
detailed estimates of their recurrent expenditure for the forthcoming financial year.
3.3.4.2 Investment budgets must be prepared on an integrated basis. Permanent and temporary
budget estimates must not be prepared independently of one another.
3.3.4.3 Estimates of recurrent expenditure must show separately, within each budget:
‘charged’ and ‘other than charged’ expenditure
Expenditure on revenue account and expenditure on capital account.
3.3.4.4 The Finance Officer must approve and sign off the budgets relevant to their entities.
3.3.4.5 For each spending unit (entity) within a branch, the levels at which recurrent estimates
are to be submitted is as follows:
For each revenue stream, the revenue and units of appropriation
For each primary unit of appropriation, to the detailed levels of both function
and object heads
3.3.5 Preparation of Recurrent (permanent) budget
3.3.5.1 Estimates provided under the permanent budget, as defined in Direction
3.2.2.3, Must only include items which have already been cleared by the Accounts/ Department.
If an item appears in these estimates for the first time, it must be supported by a copy of
the approval for continuation of that item on a permanent basis.
3.3.5.2 It should not be assumed that estimates provided under the permanent budget are fixed
items. All the branches and units should review their overall establishment requirements
and patterns of contingent expenditure to identify potential cost savings when preparing
their budget.
Budgeting Policies- Final Copy/Jan 2012 Page 8
9. 3.3.5.3 In order to form the basis for the following year budget estimates, revised estimates must
be prepared for the current financial year. Revised estimates should be determined in
light of:
Actual for the first 3 months of the current financial year plus actual for the last 9
months of the previous financial year
commitments entered into and expected to be paid in the current financial year
12 months actual for the previous two years adjustments arising from:
Re-appropriations within particular revenue stream during the current financial
year
New items of expenditure approved through Supplementary Budget during the
current financial year surrenders made or expected to be made during the
current financial year.
Any other relevant factors
The impact of any investment and current expenditure factors.
3.3.5.4 Where the revised budget exceeds the projected revenue, the branches and units must
indicate how the excess is proposed to be met and the delegated authority who
authorised the increase.
3.3.5.5 Where the revised budget is less than the projected revenue by more than 5%, an
explanation of the saving must be provided by the branch and units.
3.3.5.6 Budget estimates for the next financial year are then prepared for each detailed head
(detailed function and object within each unit of appropriation). For permanent budgets,
the following information must be provided at detailed head level:
Actual for the last financial year and budget variances for that year
Budget estimate for the current financial year
Revised estimate for the current financial year
Budget estimate for the forthcoming financial year.
3.3.5.7 From the information collected above, a statement will be prepared comparing the
differences between:
Current year’s approved grant and the revised estimate
The budget estimate submitted for the current year and the estimate for next
year.
3.3.5.8 Budget estimates should be prepared to include subsidiary details in the prescribed form
(e.g. Payrolls, calculation of allowances etc.), and made available for scrutiny by the
Branch Partners, if requested.
3.3.5.9 Other relevant factors should also be considered in developing an estimate for after next
year’s budget. These include the following:
Adjustment for expected inflation as provided, increase in salary costs and any
other planning assumptions provided in the budget call circular.
Known deferred liabilities, as recorded on the Liabilities Register, for the next
year.
Anticipated savings arising from productivity gains, and reduction or
termination of specific programs or initiatives.
3.3.5.10 Estimates relating to approved establishments, both permanent and temporary, should
take into account provisions for leave, expected vacancies and allowances payable to
Budgeting Policies- Final Copy/Jan 2012 Page 9
10. employees, based on past actual and other relevant factors. Substantiation must be
provided for variations from the previous year’s establishment.
Posts which will not be filled must not be provided for. This includes provision
for staff on long-term transfer or leave.
Estimates of salaries must be supported by the number of posts against each
establishment, and an explanation of any variation between the next year and the
current year’s posts.
3.3.5.11 Lump sum provision in the budget must not be made unless in exceptional
circumstances. For example, the use of ‘other’ expenditure heads should be avoided, in
favor of more clearly defined heads.
3.3.5.12 Permanent budget estimates must be submitted by the (Branches and Units) concerned
spending entities to the FINANCE OFFICER no later than 1 December each year.
Subsequently the Budget pertaining to the permanent budget must be submitted to the
Budget and Revenue Committee and copied to the FINANCE OFFICER, no later than 1
January
3.3.5.13 The dates detailed are applicable unless otherwise notified by the
CEO Office.
Budgeting Policies- Final Copy/Jan 2012 Page 10
11. 3.3.6 Preparation of non-development (temporary) budget
3.3.6.1 Temporary budget estimates, as defined in Direction 3.2.2.3, shall only be included in this
section of the budget where already agreed with Finance Department. No scheme of
fresh items can be included in the Budget unless it is complete and approved.
3.3.6.2 The requirements for preparation of revised estimates and excesses and surrenders as
given in Directions 3.3.5.3 to 3.3.5.5 also apply to temporary budgets.
3.3.6.3 Temporary budget estimates must be submitted by the law firm branches and units
(spending entities) to their respective branch partners in charge for examination no later
than 1 December each year. Where clearance of fresh charge proposals is required by other
branches or Head Office, it should be obtained prior to submission.
3.3.6.4 Temporary budget estimates must be submitted to the Finance Officer no later than 20th
December each year. Subsequently the budget pertaining to the temporary budget must
be submitted to the Budget and Revenue Committee with a copy to the FINANCE
OFFICER no later than 1 February.
3.3.6.5 The comparative analysis of revised estimates with approved revenue and budget
estimates for the current year and next year provided for in Direction 3.3.5.7 should also
be submitted.
3.3.6.6 The dates detailed are applicable unless otherwise notified by the CEOs Office.
3.3.7 Preparation of Investment budget
3.3.7.1 Detailed procedures for the preparation, appraisal and approval of Investment Budget
proposals are set out in the ‘Manual for Investment Budget Proposal’ issued by the PMB
and are applicable to all branches and spending units. Investment Budget Proposal
estimates must only be prepared for budgets approved in accordance with those
procedures.
3.3.7.2 When branches and spending units submit their proposals to the PMB for the Annual
Investment Budgeting Programme, a copy of this submission must be forwarded to the
FINANCE OFFICER. This will include detailed estimates for specific Investment projects.
3.3.7.3 Estimates of development expenditure for each project/scheme must be furnished by
spending entities to the Financial Advisor no later than 1 December each year. The
following information for each project/scheme must be provided:
name of project/scheme
expected date of completion
physical targets to be achieved in the project
accumulated expenditure and percentage of completion up to the end of the
previous year
revised budget estimate and physical targets for the current financial year
budget estimate for next financial year
Targets proposed for next financial year and basis for determining target.
3.3.7.4 The level at which investment project budgets will be submitted is as follows:
Investment Capital Revenue within each capital expenditure
Budgeting Policies- Final Copy/Jan 2012 Page 11
12. At detailed function and object level for those heads pertaining to Investment
project expenditures within each primary unit of appropriation.
3.3.7.5 Branches and Units entities shall provide details of physical targets to be achieved by the
investments, along with budget estimates.
3.3.7.6 If a proposed investment is new, and a budget estimate is submitted for the first time, it
should be accompanied by copies of the relevant investment proposal and capital
budgeting investment decision authorization documentation.
3.3.7.7 Proposals submitted to branches or units for expenditure(s) to be incurred under an
investment project, shall be compiled by the same branch or unit and submitted to
Accounting Department.
3.3.7.8 The Law Firm branches and units (Spending entities) must ensure that there is no
overlap of budgets between individual investment projects or between investment and
recurrent expenditures.
3.3.7.9 The local currency component of the investment estimate must be shown separately from
the foreign currency component. In addition, these components of the investment budget
are not interchangeable throughout any stage of the investment.
3.3.7.10 In relation to the estimate of joint venture investment, the following rules shall apply:
All joint venture, and subsidiaries in both capital and loans, shall be incorporated
into estimates of investment projects. Such estimates of joint ventures or
subsidiaries must first be cleared by the EXCOM
The foreign currency component of an investment project estimate must be
shown distinctly with the source and type of fund (e.g. Partner(s) Contribution,
loan etc). This information shall be provided in a separate statement to the
FINANCE OFFICER
Partner Contribution in the form of Assets, and legal expertise, where it is
utilized within the investment, shall be provided for in the local currency
component of the Investment estimate.
3.3.7.11 Once satisfied with these estimates, the branch Accountant (BAA) must obtain approval
from the FINANCE OFFICER, who will sign off the budgets.
3.3.7.12 subsequently the estimates of Investment expenditure must be submitted to the Budget
and Revenue Committee headed by the FINANCE OFFICER, in the form of a New Item
Statement, no later than 20th December each year. The new item statement, countersigned
by the delegated chair of PMB. This information should be shown in the budget book.
3.3.7.13 After submission to the Finance Department, a number of review processes must be
initiated to establish the available resources for investment expenditure and examine
demands of branch/Unit investments needs. The review of each project must be made in
light of the following factors:
overall resource position (resources available from the Budget to finance the
Annual Investment)
Indentified priorities
phasing of Investment
status of Investment
availability of Capital or Funds
likelihood of completion in the forthcoming financial year
Budgeting Policies- Final Copy/Jan 2012 Page 12
13. 3.3.7.14 Cash Budget Preparation
3.3.7.15 Guidelines and General Policies
Cash Budgeting estimates shall be part of budgetary control prepared by the FINANCE OFFICER
/SA, showing how cash resources will be acquired and used over specific time period.
3.3.7.16 The cash Budget will project cash resource need in term of deficit and excess
3.3.7.17 The cash budget format will feature but not limited to the followings parameters
Receipt Section
Disbursement Section
Cash Excess or Cash Deficit
The Financing Section
3.3.7.18 The Cash Budget should be broken down into various times periods; monthly, Quarterly, Semi
Annually, and Yearly.
The Monthly Cash Budget will need to ready on the first day of the week of every month
end
The Quarterly Budget will be submitted on the last working day of every quarters
The Semi- Annual Cash Budget will submit on the last working day of at the end of this
period.
The Annual Cash Budget will be submitted on the last working day on the third week.
3.3.7.19 Cash Budget Report
Once a cash budget has been developed it will to be submitted to the Chief Operation Officer for
the presentation to the CEOs office.
Budgeting Policies- Final Copy/Jan 2012 Page 13
14. 3.3.8 Preparation of receipt estimates
3.3.8.1 Estimates of receipts must be prepared by those authorities responsible for administering
revenues. Preliminary revenue estimates must be submitted to the FINANCE OFFICER
for scrutiny and forwarded to the Budget and Revenue Committee no later than 1
December each year. This enables the overall resource position to be determined for
financing of the operation of the law firm. Final estimates, with explanatory notes, shall
be received by 1 March each year.
3.3.8.2 The authorities required to submit receipt estimates are the Partner In Charge with
support from the BAA for branch revenue receipts, and equity and loan receipts.
3.3.9 Consolidation of budget data
3.3.9.1 After budget estimates have been reviewed by the BAA and approved by the FINANCE
OFFICER , the demands for revenue stream for each branch and unit must be prepared
and submitted, (along with the supporting Budget and New Item Statements) to the
Budget and Revenue Committee.
3.3.9.2 The Accounting Department shall review and consolidate the demands for revenue
streams projection submitted by the law firm branches and units. We recommend that
the law firm adopt to capture, verify and consolidate the budget data.
3.3.9.3 The Accounting Department must review the consolidated estimates to ensure the
Master Budget overall budget policy and objectives have been met, and make
adjustments in consultation with Branch and Units Partners In charge in all required
areas.
3.3.9.4 Upon completion of the consolidation and review process the final Master Budget
documents will be produced, and presented to the EXCOM.
3.3.10 Authorisation
3.3.10.1 Budgets approved in procedures as detailed earlier must subsequently be set before the
EXCOM for authorisation.
3.3.10.2 Authorised budgets must be recorded in the Schedule of Authorised Expenditure, with
subsidiary information contained in the Details of Revenue sources and Appropriations
annual publication (Recurrent and Investment expenditure).
3.3.11 Implementation
3.3.11.1 After the budget is authorised by the EXCOM, the Account Department must formally
communicate the budgets, as set out in the Authorised Expenditure, to each branch,
Units and to the Finance Department records.
3.3.11.2 A separate release letter (Circular) must be sent from the Finance Department to the
Branches, and law firm units, with copies to the respective authorized person(s), to
advise on the ( source of funds) funds made available against these budgets. The SA,
must communicate this information to the BAAs in all the branches.
Budgeting Policies- Final Copy/Jan 2012 Page 14
15. 3.3.11.3 An appropriation ledger must be maintained by the Accounting Department to record
the initial distributions of budgets made to the law firm branches and units (entities) and
any subsequent adjustments made throughout the year.
3.3.11.4 It is the responsibility of the BAA to ensure the budgets applicable to his/her Branch or
Unit are properly communicated to the various delegated officers in that entity. The
BAAs will maintain a record of such this entities.
3.3.12 Reporting and monitoring
3.3.12.1 The BAAs of each branch and units is responsible for controlling expenditure from the
available source of funds and will exercise this control through his/her delegated
authorities.
3.3.12.2 At a transaction level, Drawing and Disbursing Agents must ensure claims for payment
are properly prepared and duly approved, as per the Schedule of Authorised
Expenditure, classified, and recorded according to the rules procedures for expenditures
laid down in chapter 4 of this Accounting Manual.
3.3.12.3 No transaction exceeding the value of available source of funds can be passed for
payment. However, if the claim is inevitably payable under legal contracts and
insufficient funds exist, the demand for payment may be honoured. The disbursing
Agent must report the matter to a delegated authority before approving the claim
(Direction 3.3.12.7). In such circumstances the SA/FINANCE OFFICER must take
appropriate actions to find the extra funds for such payments.
3.3.12.4 Any Law Firms branch and units required to undertake work or incur expenditure on
behalf of another is required to exercise proper budgetary control over the funds
provided by the principal authority (Partner In charge). The branch and units (entity)
incurring the expenditure must ensure:
The funds provided by the principal entity are not exceeded
The money is spent for the purpose intended
Any anticipated savings are promptly surrendered back to the principal entity.
The principal entity will communicate the revenue stream within which expenditure
may be incurred to the concerned branch and unit and issue the required written
approval for expenditure to be incurred by a nominated authority in that (Branch and
Units) entity.
3.3.12.5 The BAAs in each branch and units (entity), as part of his/her responsibility for
monitoring expenditures, must submit a statement of excesses and surrenders to the
Finance Department at prescribed dates, and in a format set down by the Finance
Department.
3.3.12.6 All anticipated cost savings must be surrendered to the Law Firm Common Accounts
immediately as they are foreseen, but no later than 1st July each year. Cost Savings from
source of funds provided after 1st July must be surrendered no later than 30th July.
Stringent controls should be exercised in the expenditure of all potential or actual cost
savings. In addition:
No savings should be held in reserve for possible future excesses
Budgeting Policies- Final Copy/Jan 2012 Page 15
16. Expenditure postponed must not be re-allocated to meet new items of
expenditure
Expenditure must not be incurred simply because funds may be available within
a particular revenue stream that cannot be properly utilised must be
surrendered.
3.3.12.7 Excesses (i.e. expenditure for which no provision has been made in the current year’s
original budget) should not normally be incurred. However, in certain cases where
budgetary factors have changed abnormally or have been under-estimated (such as
growth rates and inflation) it is possible for the SA to reallocate funds, provided they are
available from cost savings arising in the same revenue streams. In this case the SA or
his/her delegated officer (BAAs) is permitted to re-allocate funds between the units
allotments made to delegated officers (Administration Assistant) or between detailed
object heads of the same primary unit of appropriation within a particular funds,
provided the:
re-allocation is not to or from the establishment (salaries and allowances) budget
delegated authority is also an authority competent to approve expenditure under
these heads
re-allocation is authorised before the expiry of the financial year to which the
budget relates
Amount re-allocated does not exceed any financial limits as determined by the
Accounting Department or EXCOM.
3.3.12.8 Re-allocation between units (major object) of appropriation and between different funds
must be approved by the Finance Department (Hill Finance). The specific authorities for
such transfers are set out in the ‘Delegation of Financial Powers’ issued by the
Accounting Policy Manual.
3.3.12.9 The BAA/SA he or she is not permitted to re-allocate funds between Branch and Units.
3.3.12.10 In all cases of funds re-allocation, the Accountant General’s office must be immediately
informed once it has taken place.
3.3.12.11 Re-allocation of funds between voted and charged components of the Budget is not
permitted.
Budgeting Policies- Final Copy/Jan 2012 Page 16
17. 3.3.13 Supplementary Source of Funds
3.3.13.1 If funds are still not available within a particular revenue stream for a branch or unit, it
should then consider whether the certain expenditure can be postponed. If it cannot be
postponed, the branches and units (entity) can then apply to the Account Department
(Hill Finance) for a Supplementary Source of Funds.
3.3.13.2 A submission to the Account Department (Hill Finance) for a Supplementary source of
Fund will not be accepted unless the excess is due to a cause beyond the control of the
branch and Units (entity) concerned and expenditure cannot be legitimately postponed.
3.3.13.3 Expenditure on new services or programs in which no provision in the budget has been
made will not normally be admitted as a Supplementary source of funds and should be
met from savings.
3.3.13.4 The Finance Department will need to give their consent for the Supplementary revenue
application. However, the Supplementary revenue application can only be approved by
the EXCOM during the budgetary cycle for the following year. Expenditure during the
interim period in respect of the additional appropriation applied for through the
Supplementary budget application commencing from the CEO’s consent to the approval
by will be governed by the law firm budgetary policy guidelines as issued from time to
time.
3.3.14 Review
3.3.14.1 An annual statement of expenditures against budget (appropriation), referred to as the
Annual Appropriation Accounts, is prepared and published by the Finance Officer and
respective BAAs. All the Branches and self-accounting entities prepare and publish their
own Annual Appropriation Accounts, duly certified by the SA.
3.3.14.2 This report must provide, for the whole financial year just completed:
A comparison of actual expenditure with original and supplementary budget.
Details of excesses and surrenders and supporting explanatory notes (as
provided by every branch and units)
Comparison of actual expenditure with previous year actual.
This information will be provided for each revenue streams, down to minor function and
object level.
3.3.14.3 The review process also includes the auditing function, which may be both external (i.e.
by the use of an outside auditing consultancy firm) or internal (involving the Finance
Department staff). Internal review processes may assess performance against budget,
and achievement of planning objectives against financial and non-financial performance
measures.
3.3.14.4 The Budgeting, Accounting and Audit Board Committee should investigate those cases
in which a branches or units has incurred a material deviation from budget and make
recommendations to the COO. The COO approves the material deviations from budget
recommended by the Budget, Accounting and Audit Board Committee (excess
expenditures) and publish the approval in the form of an Excess Budget Statement.
Budgeting Policies- Final Copy/Jan 2012 Page 17
18. 3.3.14.5 Information and feedback obtained from the above review processes will be used in
developing next year’s budget, thus completing the budgetary cycle (Direction 3.3.5.3).
3.4 Specific Budgetary Procedures
3.4.1 Introduction
3.4.1.1 This section discusses specific aspects of the budgeting process that need to be considered in
addition to the Detailed Procedures set out in the previous section.
3.4.2 Charged Expenditures
3.4.2.1 According to the partnership deed CAP 11 in relation to Rules liabilities of partners it sets out
those items which are to be charged upon each partner..
These items are:
All Partners are liable jointly with the other partners for all debts and obligations of the
firm incurred
the administrative expenses of the above offices
including interest, repayment of capital and other expenditure connected with the raising
of loans, and the servicing
any sums required to satisfy any judgments, decrees or awards against the law firm
any other sums declared by the legal and regulatory requirement.(KRA etc)
3.4.3 Centrally provided for expenditures
3.4.3.1 The following expenditures shall be centrally provided for by the Accounts Office under
instructions issued by the CEOs Office. These estimates are to be submitted to the Finance
Department by the prescribed date for inclusion in the Master Budget Statement:
expenditure on pensions
loans and advances
Interest on miscellaneous debts.
Value Added Tax related issues
PAYE
Common Cost
Insurance
Audit Fee
Consultancy Fees
Training Fees
Budgeting Policies- Final Copy/Jan 2012 Page 18