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Security Management
home page > Unit 11: budgeting
Budget Cycle
have to understand the
process to really understand budgets
May be done by an individual, by a small team, or with many involved:
Stages:
- 1: beginning:
senior management announces process, letter may include summary of financial outlook, for next year, review of past. Sets objectives and timetables. - 2: preparation and submission:
must determine cost of performing programs and activities, justify increases in terms of overall benefits. Information that goes into this may be hard to gather. - 3: adoption:
most of this part is done by senior management and boards. - 4: implementation:
carrying out directed activities at assigned level. Involves monitoring. Easy to deviate from the budget at this stage: sometimes unavoidable. - 5: review and audit:
at end of fiscal year. Process ensures spending was done properly.
Budget "game"
process requires competition among values. Being successful in
the process requires that an individual learn how to "play
the game," with tactics such as creating alliances with
other departments. Involves social, legal, political issues.