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Budget Formulation and Execution

BUDGET FORMULATION AND EXECUTION 4

BudgetFormulation and Execution

BudgetFormulation and Execution

Abudget requires time for planning and writing down. To draft a budgetthe following ought to be done set a specific goal, go throughprevious business documents, assign a set number to specific projectsand finally come up with the final draft. After the drafting thebudget, the draft is executed through ascertaining of money tovarious departments, putting up control measures for the money(Heniff, 2008). Finally, a follow-up procedure to make sure theallocated money is properly used comes up.

Lawenforcement agencies have to carry out a number of processes in orderto come up with a well planned document. These methods include: thesector concerned with monetary control works out a worksheet that aidin groundwork of the budget approximation. Also, the supervisor holdsa meeting with managers where they come up with a scheme of the nexttrading years’ expected happenings. Managers go on to makeprospects be allocated to the different unit in the next year. Theworked out draft is given to the Executive Officers for approval andreview by the supervisors. Finally, budget explanation is writtendown on paper by the managers.

Afterdrafting the document, it is taken through another process ofendorsement (McCaffery, 2001). Endorsement entails some actions whichare:

1.The consent stage in where the legislature and ministries arepermitted to make use of money in accordance to required projects.

2.The loyalty stage which controls business transactions and requiresparties involved being fair and faithful in business.

3.The confirmation stage that show goods under purchase or transactiondelivery and the transaction papers have collection.

4.Fee delivery period of stating that the amount incurred during thetransaction is confirmed and the customer has received papersrequesting for payment.

5.Expense clearance stage where the incurred cost is offset either bywriting, paying directly or through electronic means.

6.The accounting stage is stating that the carried out sale have beenrecorded for future reference.

Locallaw enforcement agency has to come up with a budget in case there isa project to be undertaken. The agency does the following to draft abudget:

1.Formulation of head of state’s draft where the head of statesuggests monetary distribution to all ministries in the government.

2.Discussion of the proposed draft by the congress where the draft istaken to the congress for discussion so as to pass it or correct it.

Afterthe budget is discussed by congress members, it is taken through theprocess of execution where are allowed to spend money only to performspecified projects. In-case the money allocated to the project is notenough the congress may make another sub-appropriation.

Reference

Heniff,B., &amp Murray, J. (2008). Congressional budget resolutions. NewYork: Nova Science Publishers, Inc.

McCaffery,J. L., &amp Jones, L. R. (2001). Budgetingand financial management in the federal government.Greenwich, Conn: Information Age Publ.