I Need to reply minimum 50 words to one of my classmates posting. \”Do you agree or disagree with them? Why? State your position.\”
Classmate\’s posting: \”Budget executions is a three step process. The three steps to budget execution are monitoring, adjusting and reporting. Prior to getting into the execution part of a budget there are other steps that an organization, business, or agency has to take before executing the budget. Allocating funds for any budget is the first step in any budget. Procuring funds for any contracts or projects has to be approved by governing boards through approved spending plans. Expending money or funds for the purpose they were intended to be used for is the obligation of the budget management team to develop budget plans so that projects are completed in a timely manner but to also monitor the distribution of funds/money.
Monitoring- Business, organizations or agencies develop spending plans at the begging of each year and actual spending plans throughout the year our compared to the proposed spending plans developed at the begging of each year. Financial Review Plans are used to monitor and identify were there may be problems in spending which allows opportunity for adjustment before overspending may occur.
Adjusting- All budget plans should have the ability to adjust or readjust. This allows money or funds to be moved around from one agency or department to another if need too. This gives flexibility for budgets to get moved from high need areas to low need areas or vice versa due to change of plans or priorities from when the budget plan was originally developed.
Reporting- Business, organizations or agencies can use a verity way of reporting their budgets. Reporting can be done monthly, quarterly, and annually. These reports summarize overall budget spending and operation cost of any business, organization or agency.
Budget execution is beneficial to an organization because it purpose is to monitor the organizations financial plan to assure that there are no funds/monies being wasted on other projects that budget was not intended to fund.
Budget execution restricts an organization by assuring that the adherence is being met by not misappropriating monies/funds which helps in the development of which ever project the budget was set for.
I personally like budget executions because I feel it keeps an organization on task to completing a project. It allows organization to monitor the spending, it has room for adjustments if need too, and has a reporting plan that if executed properly will generate reports monthly, quarterly, and yearly.\”