Consolidate project management with enterprise budgeting and financial management:

Taj uses a particular system to control over the project financial management cycle, which allows integrating organizational budgeting with funding of programs and projects into one clear perspective.


Developing Budget:

Taj has been following the steps below to develop budget for respective years although some features might be changed due to unavoidable circumstances.

  • Begins preparations a month or more prior to the close of the current year.
  • Prepares an outline of the organization's planned activities for the upcoming year.
  • Determines available funds (carry over balance from previous years, cash on hand and funds in the bank, interest, etc.).
  • Does careful studies of funding sources, costs, estimated and probable fundraisers.
  • Estimates expected income and when it is expected to be available.
  • Defines needed expense (club registration, advertising, printing costs, etc.).
  • Gets price quotations on certain expenditures, delegate certain responsibilities to members.
  • Ranks order by their relative importance, which activities are the wisest expenditures of funds.
  • Chooses and decides program initiate; tries to find, "How much is available to allocate?"
  • Negotiates as necessary, eliminates less essential expenditures or limit s certain expenditures.
  • Revises, reviews, coordinates, cross­ references, and then assembles into a final budget; and also makes sure the budget must be flexible to anticipate conditions which might have been overlooked during the planning process.


Managing the Budget:

  • Once approved, adopted, and prepared, it is closely managed.
  • Then Taj sets and maintains a minimum cash balance.
  • Formulates general policies and procedures needed to achieve objectives.
  • Keeps an accurate log of financial transactions (income and expenses): maintain its record book (check and balance records periodically).
  • Sets up internal control designed for safeguards and accurate accounting data -- this encourages adherence, too.
  • Controls cost -- allow only approved expenditures

Assesses budget at any given point of time during the budgeted period.


A short sample of Taj's Budget is given below:

A SAMPLE BUDGET
(expressed in financial terms)

INCOME

Projected Income

Actual Income

Multiplied by days

Melamine Dinner Wares Sales

2, 00,000 Tk.

Per day

Melamine Cook Wares Sales

75,000 Tk.

Per day

Melamine T-Sets

50,000 Tk.

Per day

Baby Set

25,000 Tk.

Per day

TOTAL INCOME:

EXPENSES

Projected Expenses

Actual Expenses

Utility

1, 00,000 Tk.

Per Month

Ads in Newspapers & TV

75,000 Tk.

Per Month

Machine Maintenance

15,000 Tk.

Per Month

Salaries

2, 00,000 Tk.

Per Month

Refreshments

2,000 Tk.

Per Month

Supplies/Miscellaneous.

1, 00,000 Tk.

Per Month

Awards

5,000 Tk.

Per Month

TOTAL EXPENSES


After the budget period has elapsed, Taj determines the outcome of each expense and revenue. Judge and review actual cost in order to establish priorities for the next budget period.