Managing finances

1. Managing Finances:
Budgeting and Auditing
Fariha Sehar

2. Managing Finance
This presentation has two parts
• Part 1 : Budgets and Finance
• Part 2 : Audit

3. Budgeting
• A budget is a comprehensive and
coordinated plan, expressed in
financial terms for the operations of
a system or an organization for
specific period to achieve the
predetermined goal (Shami,P.1)

4. Aims of Budgeting
1.To state the targets of system in clear and formal
terms to avoid confusion and wastage of
resources and to facilitate
2.To communicate the targets to all concerned, so
that they are understood, supported and
achieved.
3.To provide a detailed plan of action for reducing
uncertainty and for the proper direction of the
individuals and group efforts to achieve the goals

5. Cont.
4.To coordinate the activities and efforts in such a
way that the wastage of resources is minimized
5.To provide means of measurements and
controlling the performance of individuals and
sections to simply information ,on the basis of
which the necessary corrective action is taken
6.To adopt organization ,systematic and the most
economic methods of using financial resources to
run the system in an effective manners
(shami,P.2 )

6. Pre Requisites of Successful and Sound
Budgets
• Management Attitude
• Organizational Structure
• Managerial Approaches
Are the necessary for the effective and efficient
application of budgeting

7. Budgets Performance and Procedure
Stage 1:Identification of the Resources
1.manpower
2.Materials and
3.Time
Stage 2:Costing of the Resources
It is the most important activity in budgecting
is basically a financial statement

8. CONT.
Stage 3:Presentation of the Budgets:
As per budgetary guidelines formulated by
the government or funding agencies
Stage 4:Aproval of Budgets:
Obtaining approval of the budget by the
authorities

9. Activity Time
Take some time to do that
• What are main reason why you make your
school budgets?
• Explain how the budget is assisting you to run
your school?

10. Function and Processes of Budgets
• 4 Areas
1.Planning Base: where are we now?
External Assessment, Internal Assessment and
Priority Issues
2.Objects:Where do we want to be?
3.Action Plan: We must do? what?
4.Review:How do we get the resources to do it?
Existing Financial practices, Expenditure Proposals
and Revenue Proposal

11. Budgets: Allocation of Resources
• Salaries
• Repair and maintainers of asserts
• Purchase of assets
• Development of new programs
• Construction of building

12. Type of Budgets
• Long Budget Period
• Medium Budget Period
• Short Budget Period

13. Financial Policies
• Financial policies describe the principle and
goals that guide the Financial Management
Practices
• Financial policies are statements created by
policy makers to clear future direction and
overall Financial Management Plan

14. Thanks
• Have a nice day
• Referance:Shami,P.Aslam,Waqar”Financial
Management”AEPM, Islamabed

15. Part 2
Auditing