BUDGET REPORT 4
Asthe company gears up to prepare a yearly budget for the comingbusiness year, the budgeting committee is expecting submissions fromeach department. The annual budget for each department ought to besubdivided into quarterly estimates for purposes of clarity andcoherence. The budget estimates ought to be submitted on or before20thJune 2014. Any submissions made later than this date will not beconsidered. The early submissions give the budgeting committee timeto review the submissions for purposes of allocation of proper moniesfor the coming fiscal year. As you may know, the early submissionsgive the committee a month to review and make any necessarycommunication to each department for purposes of cohesiveness(Locker,2010).The late submissions are not considered, and the committee allocatesfunds based on their own estimates.
Theestimates must be submitted as word documents with detailedexplanations for each cost as a justification. The explanationsfacilitate accountability, and they give a thorough justification ofhow the money is utilized. This reduces wastage and allows thecompany to make allocations based on needs that propel the companytowards its goals. As has been the norm of the company, allsubmissions with no clear explanations will not be considered as thisshows a lack of accountability and transparency (Locker,2010).The submissions are also stored for future references in the eventthere are any inconsistencies arising from budgetary allocations. Thesubmission in word also facilitates proper communication between thedepartment and budgetary committee.
Theexplanations also act as evidence of how the staff intends to utilizethe funds to facilitate company growth (Gopal,2009).This ensures that each department is held accountable in case it doesnot achieve its objectives due to budgetary allocation. Thedepartments are thus encouraged to ensure that all costs arejustifiable, and they help it in achieving its objectives. Theestimates are broken down into quarters as the company evaluates eachdepartment’s performance on a quarterly basis. The performance isclosely linked to the ability to use the money allocated properly.
Themost important costs that must be highlighted include the amount ofmoney for maintenance of the premises as this is an annual activity.Each building is supposed to undergo annual maintenance for purposesof ensuring that it remains appealing. The cost of maintenance isimportant as it indicates how much each will building will cost andeach item. The maintenance must also include new security systemsthat have been given by the state. Following various security threatsaround the globe, the government has given directives for improvedsecurity systems in the buildings. The management has reached anagreement that this is to be added to the cost of maintenance as thiswill involve an upgrade of the existing security systems (Locker,2010).
Theestimates must also indicate the transport costs of each department.The budgetary committee has noticed an increase in the transportallowances for each department, and this has necessitated questionsregarding the effective use of the money allocated for transportcosts. Traditionally, the transport costs were allocated to theoverall company, but the rising costs have facilitated the breakdownof costs to each department. The department must thus justify thetransport allowance requested and show how this cost will be usedefficiently. The purpose is to minimize unnecessary transport costs,which inflate the transport budget for the company (Gopal,2009).
Gopal,N. (2009). Businesscommunication.New Delhi: New Age International.
Locker,K. O. (2010). Businessand administrative communication.USA: McGraw Hill Publishing.