1-27 - Financial Management Class Notes 1/27/10 Budgeting...

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Financial Management – Class Notes 1/27/10 Budgeting Budgeting is the most important process of any organization. You must understand how it works within your organization. Budgeting is a forward projection of the organization what’s to and is also a score card on how the organization did at the end of the year. You have to have a proper account receive and expend funds. Expenditures must be within limits. Local and state governments cannot deficit spend. Non-profits cannot go into debt. Any deviation from the budget must have board approval. Budgets are planning tools, it’s also a management tool because it links costs to services. The major function of the board is to approve the budget. Non-profits have by-laws filed with the federal government and secretary of the state. Those by-laws must address financial aspect of the organization. Board approval to accrue costs and to get grants. Must let the board know that you want to get a Federal grant because they want to make sure that the grant is in line with the mission and vision of the organization. Reserve funds are there in case economic down turns or the possibility that the organization may expend
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1-27 - Financial Management Class Notes 1/27/10 Budgeting...

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