Question

Who should be involved in the budgeting process? Who is responsible for ensuring the budget is met monthly, annually? How might this differ between organizations/industries? Describe why ethics are important in the budgeting process.

Answer 1

Program or executive directors, the development department and the Board of Directors should be involved in the budgeting system. The Program directors leading from the front observes the changes in the environment and capable of allocating resources to the organization. The Development department involvement may represent the better cash flow estimations. The board of directors is the one who should approve the budget based on the performance of the organization.

The respective department's staff like production department, sales department etc must hold responsible for ensuring the budget is met monthly or annually as they are a person who involves in the operations of the respective departments.

Not every budget fits for every organization. The budget may change by the size of the organization, the strategy that such organizations follow, the market which the organization, the industry it is in etc

Ethics are needed when budgeting to avoid any issues like conflicts of interest, legal issues, moral issues etc. A budget must be able to make choices the makes the organization raise its mission, vision, and other goals in ways that financially substance with an ethical approach.