Project Budgeting

Four Ideas

Framework

Design

Mechanics

FM Tool

1. Framework

Item Budget Spent Variance

Freezer for Vaccines 20,000 8,574 11,426

Vaccines 12,000 456 11,544

Extract - Annual Expenditure Report

ProgramPlan

Actual Activity

Practice

Expenditur

e

Budget

Also...

Expenditure

ActivitiesBudget & Plans

Accounting

Logical Budget

Accountant’s Budget

Local Contribution

Community

Other Donors

Banks etc.

Government

Form of Cooperation

Consortium

Project Sharing

Silent love...

Validation

Whether real

Whether relevant

How has it been accounted?

How is it being reported?

Money received directly by third-parties

West Bengal

Office

Level of Detail

The customer who pays the least

demands the most.

Level of Detail

1-2 crores - few top lines

5-10 lakh - detailed calculations

Middle way?

2. Design

IRMA, Anand

8.75 crore beedis each day

Launch Campaign 5 lakh

Land for beedi oven 8 lakh

Working Capital 6 lakh

Overheads - 3 years 9 lakh

Leading Beedi 40-50 paise / pkt

Boston Beedi 60 paise / pkt

Boston Beedi

Clay Oven

3. Mechanics

Three Keys

Basis of Estimates

Inflation

Essentials

Files Names

budget.xls

kumud.xls

24 Jul 13.xls

project.xls

excel.xls

File Location

Versions

Latest file?

Approved file?

Printed, signed?

Digitally signed?

Preventing changes

Checking Excel

Compare units / prices with actual formula

Validate formula / ranges

Trace dependents

Eyeball test

4. FM Tool

Making the Budget

Accountant

Program Lead

NGO Head

Avoid secrecy in budgeting

Not a strait-jacket...

Like This?

Further ReadingAccountAble 37: Grant Budgets

AccountAble 86: Accounting for Project Grants

AuditAble 13: Financial Risks - Budgeting