Budjeting monitoring Essay Example | Topics and Well Written Essays - 250 words

Budjeting monitoring - Essay Example Goals and objective are imperative aspects in budget planning (Wildavsky, 1986). These assists the planners to know how much will be spend in completing the project and how much will be needed to meet these expenditures (Rhodes, 2010). Failure to identify the objectives can result to misallocation of funds. On the other hand, when a budget is set up founded on a preceding year’s numeral, it will result to misallocation of the funds (Shultz & Open Society Institute, 2005). Using a previous year’s figure will lead to allocation of an inappropriate figure that may result to over allocation or under allocation (Maddox, 1999). While budgeting for a project or program, it is essential to budget for savings too. Some funds need to be set aside to meet unanticipated expenditures. Since the Make a Way Foundation project costs more than what was budgeted, a rationing policy would have to be adopted to ensure that all expenditures fall into the available funds (Shultz & Open Society Institute, 2005). All the miscellaneous activities would be rationed to increase the available funds to fund to project. Secondly, the budget planners will need to prioritize the requests and activities of the project (Wildavsky, 1986). The less significant activities of the project can be eliminated thus reducing the project expenditure. Finally, since the planners had not considered the savings, they will have to seek for an external source of funds to finance the project till its completion (Rhodes,