BUDGETING THE EDUCATIONAL PLAN

Definition and Functions

Camelle N. MedinaReporter

I. BUDGETING Is the translation of programs, projects

and activities into their resource requirements which are expressed in monetary financial terms.

WHAT IS A BUDGET?A PlanA LimitA ScheduleA Reality CheckAn Allocation

BUDGET – A DEFINITION“A planned expression of money” Wright.D 1994 “A practical foundation in

costing” Routledge

For a defined activity

Shows;Income & ExpenditureTotal estimated costsDefined period of time

ANOTHER DEFINITIONA budget process is a system of

rules governing the decision-making that leads to a budget, from its formulation, through its legislative approval, to its execution.

Karl-Martin, Ehrhart, Roy Gardner, Jürgen von Hagen, and Claudia Keser Budget Processes: Theory and Experimental Evidence, November 2000

WHY USE A BUDGET?Stay within a limitControlForecastingDelegatePrioritise Wants, Organise Needs,Within the realm of what we Can

II. NATIONAL BUDGET PROCESSA. Budget Preparation

1. In the preparation of the budget, each department or agency of the govt. is given a ceiling or budget level. The DBCC estimates the anticipated revenues and determines the budget level.

B. Budget AuthorizationCongress discusses the budget with focus on policy, budget levels, thrust and strategy.

STEPS ON BUDGETING PROCESS 1. Identification of programs, projects and

activities to be implemented during the budget period.

2. Identification of resources.3. Costing of resources which would translate

the resource requirements into their monetary values.

4. Preparation of the budget in accordance with the mandated form and content spelled out in guidelines issued for this purpose.

5. Securing official authorization to allocate and use resources.

C. Budget Executionit is the major phase of the budget process. Authorized appropriations can only be available after complying with establish guidelines.

D. Budget AccountabilityThe concept of accountability in budgeting gives emphasis to the results of expenditures allocated and incurred. It refers to the evaluation of the quantitative and qualitative measures of an agency performance as reflected in the units of work measurement and other indicators of agency performance.

PROBLEMS WITH BUDGETINGThe process is too longThere is a lot of game playingBusiness decisions change but

the budget does notPeople in charge of budget are

held accountable in areas where they have no responsibility

MAJOR TYPES OF BUDGETING 1. Line – Item Budgeting

this is used to be most widely used budgeting system. This system is “not goal- oriented”,.

2. Performance Budgetingis a management- oriented system of budgeting which measures actual or estimated results in terms of befits accruing to the public and their unit costs.

According to Bacani

III. BUDGETTING FOR THE EDUCATION SECTORA. Peculiarities of the Education

Budget

1. A sizeable portion of the education budget is already predetermined by fixed expenditure commitments.

2. Considerable pressure is exerted on the education budget by inflation and enrollment growth.

3. The Constitutional mandate for free public elementary and secondary education dictates that government should aim to provide schooling for the population in these school age groups.

4. The law on assistance to private education further exerts additional pressure on the education budget.

CHARACTERISTICS OF A GOOD BUDGETA school’ budget should be well

researched and realistically coasted, with clear links to the school development plan. The budget must be prepared in a timely manner and needs to identify costs required for the operational and educational running of a school over a 12 months period as well as providing reserves for the replacement of assets and resources.

It is the schools responsibility to ensure that all staff have recent training and professional development in financial management.

Thank you…

GODBLESS&

MULTIPLY!!!