This document provides information about budgeting and auditing for financial management. It defines a budget as a financial plan that outlines expected revenues and expenditures. It describes the budgeting process, including departments submitting proposals, approval by governing bodies, and revising budgets in March. The document also defines finance, lists sources of finance as internal and external, and describes maintaining accounting books and records. Finally, it defines an audit as the examination of accounts to verify accuracy, notes different sections of an audit report, and lists forums for settling audit findings like committees.

1. Managing Finances:
Budgeting and Auditing

2. BUDGET : Its definition
The budget is the guide for
financial operations and
expected financial needs.

3. Why Budget?
• This proposal is prepared for Next Financial
Year.
• Each Department submit Budget Proposals to
Head of the Institution.
• In the month of November every year for
allocation of funds

4. BUDGET (ESTIMATE FOR NEXT YEAR)
• Every organization/Public and Not Public
sector will prepare budget in the month of
May every year after commitment from
Donors and get it approved from
BOG/Governing body .

5. BASIS/COMPONENTS OF BUDGETING
• Receipts
• Expenditures

6. Methodology of Budgeting:
Time line:1st July to 30th June
• Actual Expenditures w.e.f 1st July to 31st
October
• Anticipated Expenditures w.e.f 1st November
to 30th June

7. REVISED BUDGET
• Revised Budget is prepared in
the month of March every
year.

8. MAINTENANCE OF BOOKS OF ACCOUNTS
1. Cash books for each Bank Account
2. Petty cash Book
3. Budget Control Register
4. Main stock / assets Register
5. Stock register for consumable Items
6. Class wise Fee registers of students.
7. Advances Register
8. Tender Sale Register
9. Security Register
10. Dead stock Register
11. Log books for each Vehicle
12. Annual Physical Verification Reports
13. Auctions Files
14. History Sheets of Assets
15. Any other relevant record

9. FINANCE: definition
• Finance is a field closely related to accounting
that deals with the allocation of assets and
liabilities over time under conditions of
certainty and uncertainty.

10. SOURCES OF FINANCE
• Sources of finance can be classified into:
– Internal Sources (raised from within the
organisation i.e. tuition fee)
– External Sources (raised from an outside of the
organization i.e., Donation etc)

11. Part :2 AUDIT
1. An examination of accounts by one or more
duly authorized persons to examine and
verify by the reference to vouchers.
2. An audit is an examination of accounting
records which is showing true position of a
Organization.
3. Audit is an authentication and examination
of record as per rules and regulations of the
organization.

12. Audit
• Part I Relates to Previous Audit
• Part II Relates to Current Audit
I. Section I Advance Paras
II. Section II Ordinary Paras
III. Section III General Remarks

13. Settlement of Audit Paras
There are three forums for settlement of audit
paras.
• General Departmental Accounts Committee
• Special Departmental Accounts Committee
• Public Accounts Committee

14. FORMAT OF WORKING PAPER OF
AUDIT PARAS FOR SDAC MEETING

15. Activity Time

16. Any Question???