According to Budgets and Financial Management in higher education by Margaret Ba

Question

According to Budgets and Financial Management in higher education by Margaret Barr and George McClellan the six pitfalls in preparing budget documents are 1. failure to understand institutional guidelines 2. failure to check computations. 3. failure to connect the new proposal to the unit and institutional strategic plan. 4. failure to clearly state what will occur if the proposal is not funded. 5. failure to clearly state what will not occur if the proposal is not funded. 6. failure to account for ancillary cost ( staff and faculty bnenefits, room rentals etc)

What are the strategies for overcoming the six pitfalls in preparing budget documents during the budget cycle?

Explanation / Answer

Following are the strategies for overcoming the six pitfalls in preparing budget documents during the budget cycle are:
1) if there is any confusion regarding institutional guidelines than this confusion can be sorted out by asking questions and never assumed that you have understand. It is the biggest problem that people thought that they have understood but in actuality they have not understood it.

2) while preparing budget arithmetical mistake could occur. Because while preparing budget lots od Calculation is involved. So before submitting the budget the arithmetical accuracy should be checked.

3) once the institution budget is prepared it is present to the governing body for approval. This is not an automatic process and may contain both positive and negative point. Before the final approval of budget people af organisation are requested to give their suggestions so that the budget is prepared considering the ideas of unit . So that they can relate with the budget.

4)After the budget is approved. The budget must be continously monitored and monitoring the budget is constant task of budget manager. After approval of budget the budget should clear state the thing that will occur if proposal is funded.

5) everyone involved in preparing budget should understand that all budget request cannot be funded. Lack of funding does not necessarily mean that the program or idea is without merit. It may merely mean that the funding option were limited and other priority were funded as opposed to the unit request.

6) the current budget should be adjusted. The budget are preparing considering the performance of previous year. So while preparing budget adequate concern is given for ancillary cost.

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