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Maria should have an already existing organizational guideline and procedures the program managers and other staffs uses in drafting their estimates. that would be of great help when drafting budgets.

Maria should define the guidelines at a meeting before asking for the drafts, explain with the financial officers the thresholds of increment /cuts in each program and ask for updated quotes from vendors/suppliers before submitting the draft.

Maria should set clear guidelines which will set benchmarks for estimates in the budget drafts

To avoid problems like the one Maria find herself in, There is need to provide specific guidelines which program managers should use as they come up with budget estimates. The purpose is to improve uniformity and understanding.

To avoid problems like the one Maria find herself in, there is need to provide specific guidelines which program managers should use as they come up with budget estimates. The purpose is to improve uniformity and understanding.

Policies and guidelines are crucial in management processes, for example it helps to curtain excesses and keep all actions in perspective, such policies and guidelines should spell out the range of expenditure of a budget that will be acceptable in budget drafting.

Maria and her senior management team should meet up before the program managers are allowed to come up with their drafts to set up guidelines to guide the managers on the issue of drafting optimal budget drafts.

It is good to have policies in place which are aligned with the program objectives to act as a guide for the program staff

At the beginning, Maria should have set clear guideline on how program managers should have drafted there budgets. this guidelines should include policies, regulations, budget brackets and budget formats .

At its inception each program has policies, guidelines, budget formats and regulations which are set in line with program goals and objectives. In addition programs also set priorities. All this should be used to guide program managers in the budgeting process.

Maria could use policies which are aligned to organisation's goals for guidance.

She should provide them with breakdown form and ask them to fill it, then she can know for sure if the expenditures are real.

Have guidelines and policies in place. The should be timely meetings to discuss the budget issues - policies and guidelines so that the organization adopts a standard unified approach. There should be templates in place.

Similar to what happens to us! because of a lack of guidelines about: ranges for external vendors to set common ground between projects, policies that include set costs for fieldtrips and hotels, and different expectations of what can be currently covered by the organization. Developing common ground between managers could help address these issues.

I would have a top-down/incremental budgeting process that clearly spells out what the income/expenditure estimates would look like. For instance, I would use the previous financial years budget as a starting point hence everyone would base their draft budgets on the previous budget to avoid the various descrepancies.

to define the finance limits for the projects

If I am in her position, I will simply issue a policy statement of using certain percentage as an inflation rate to carry out the incremental budgeting of their various program. This is to create an unbias operational budget

I think Maria should draft financial guidelines to her program managers to help them draft a budget that's cost effective and in line with the organization goals

Indeed you have a point

That's what I think can solve this dilemma

Finance and accounting unit should try and come up with a unique template that guide inclusion and cost estimate of activities across all the program units so as ensure inadequacies and ambiguity is resolve . Consequently improving the efficiency of the whole process

Have guidelines and policies in place. The should be timely meetings to discuss the budget issues - policies and guidelines so that the organization adopts a standard unified approach. There should be templates in place.

Maria can use the incomea and expenditures goals for programs and departments. Being in her position on this issue, I would set a cap on expenditures for all departments. For example, departmental budgets to have 5% of increase in all expenditures

Maria can implement a standardized and transparent budget estimation process to address the issue of varying cost estimates provided by her program managers. Here's what she can do:

Establish Clear Guidelines: Develop clear guidelines and criteria for preparing cost estimates. These guidelines should outline the factors that need to be considered when estimating costs, such as direct expenses, indirect costs, overhead, and contingencies.

Use Historical Data: Encourage program managers to use historical data from previous projects as a reference when estimating costs. This can help ensure that estimates are grounded in real-world experience.

Cost Estimation Templates: Provide standardized templates or tools that program managers can use to input their cost estimates. These templates can prompt managers to consider various cost components and ensure consistency.

Review and Approval Process: Implement a review and approval process for cost estimates. Require program managers to submit their estimates along with a breakdown of how they arrived at those figures. This allows for transparency and accountability.

Comparison and Justification: Maria can compare cost estimates across different programs and ask program managers to justify any significant deviations from historical data or industry standards.

Collaborative Discussion: Facilitate open discussions among program managers about their cost estimation methodologies. This can help share best practices and align everyone's understanding of how to estimate costs accurately.

Third-Party Validation: In situations where a program's budget seems suspiciously low or high, Maria could involve a third-party financial expert to validate the cost estimates and ensure fairness.

Continuous Improvement: Encourage a culture of continuous improvement. After each project, gather feedback from program managers about the accuracy of their estimates and the actual expenses incurred. Use this feedback to refine the estimation process over time.

Maria could provide some guidance that includes: (1) begin with last year's budget, in both content and format, (2) prepare two drafts, one that adheres fairly closely to last year's numbers, though reallocations within the program are allowed, and another that increases expenditures by as much as 5%.

Maria can address varying cost estimates by implementing a structured process:

1. Standardized Guidelines: Provide clear expense categories and templates for estimates.
2. Historical Data: Encourage referencing previous years' budgets for averages.
3. Cross-Validation: Peer review estimates to identify outliers and discuss discrepancies.
4. Justification: Require detailed justifications for deviations from norms.
5. Finance Team Review: Have finance experts independently assess estimates.
6. Objective Evaluation: Develop an objective scoring system for fair assessment.
7. Budget Committee: Form a committee to collectively review and approve final budgets.

I would recommend a combination of these strategies to ensure transparency, accountability, and fair budget allocation, aligning with the organization's goals.

Maria should set guidelines that has expenditure caps, this way inflated budgeting will be dealt with. Likewise, cost or estimated expenditure research proofs should be submitted as guidelines to guard against under budgeting as in the scenario sighted above

Absolutely, the development and implementation of policies, guidelines, budget formats, and regulations are essential components of effective program management. These elements play a crucial role in guiding program managers through the budgeting process and ensuring that financial resources are allocated efficiently and in alignment with program goals and objectives. Here's how each of these components contributes to the budgeting process:

Policies: Policies provide a framework for decision-making within the program. They outline the principles and rules that govern how funds should be allocated and spent. For example, a policy might dictate that a certain percentage of the budget must be allocated to specific program activities or that funds cannot be used for certain purposes. Program managers must adhere to these policies when creating their budgets.

Guidelines: Guidelines offer more specific instructions on how to implement program policies. They often include recommendations or best practices for budgeting. For instance, guidelines might specify the format for budget proposals, the timeline for budget submission, or the documentation required for budget justifications. Program managers can use these guidelines to ensure that their budgets meet the program's requirements.

Budget Formats: The budget format defines how financial information should be presented, including categories, line items, and the level of detail required. It ensures consistency in reporting across different program components or periods. Standardized budget formats make it easier for program managers to create, review, and compare budgets, promoting transparency and accountability.

Regulations: Regulations refer to any legal or statutory requirements that the program must follow when managing finances. These can include federal, state, or local laws, as well as specific rules imposed by funding agencies. Program managers must be well-versed in these regulations to avoid compliance issues and potential legal consequences.

Priorities: Setting priorities is a critical step in the budgeting process. Program managers need to identify the most important objectives and activities and allocate resources accordingly. Prioritization ensures that limited funds are directed toward initiatives that will have the greatest impact on achieving program goals.

In summary, these elements provide a structured framework for program budgeting, helping program managers make informed decisions about resource allocation. They also promote accountability, transparency, and compliance with applicable laws and regulations. Effective budgeting guided by these policies, guidelines, budget formats, regulations, and priorities is essential for the successful implementation of programs and the achievement of their intended outcomes

She should have given them policies or guideline to avoid this. I will give them guidelines to follow,

Maria should ensure there are policies in place which will include the expected inflation rate to be used by the program manager. Since inflation rate fluctuates, this polices can be review annually to include the yearly inflation rates. Also policies and guidelines on income and expenditure goals.

Maria could provide some guidance that includes: (1) begin with last year's budget, in both content and format, (2) prepare two drafts, one that adheres fairly closely to last year's numbers, though reallocations within the program are allowed, and another that increases expenditures by as much as 5%.

Maria should provide company guidelines to ensure that all teams are aligned. In this case creating an income and expenditure goals would provide context for expenditure caps so that no team is going above that or below.

At the onset of each program, there should be set out policies, standards and processes that convey the organizations goals and vision. These policies should spell out the guidelines for salary increases, update of income/expenditure estimates, procurement processes as well as cost estimates.

Maria should as a matter of urgency, prepare tools and templates and policies that will guide what the budget is set to accomplish. These guidelines should be easy to understand, it would be measurable and specific.

Mahila Housing Trust's process for defining expenditures involves a systematic approach starting with a meeting between the director, program managers, and financial manager. Program managers estimate expenditures based on historical data and subject matter expert consultations. The finance team reviews, revises, and combines the budgets, taking into account various sources of income such as donations, government funding, and income from affiliated social enterprises. The final budget, encompassing both expenditures and income, is presented to the director for approval, marking the completion of the budgeting process.

in my opinion no

Maria should put in place a guide for establishing the budget which will indicate the percentage of expenditure not to be exceeded and a financing envelope so that each ministry can know its budget limit not to be exceeded.

I will advise program managers to get quotations for high value items. I will provide the teams with a percentage increase they should use when using last year's budget (inflate rate). I will ask them to provide a copy of the budget that shows last year's amount and the % increase which were provided to them. The budget template will show unit costs x no. of units, to make it easier to see how realistic the estimates are. Teams will include the budget narrative that shows what the budget line is for and how they arrived at the estimates.

The issue here is, there is no strategic direction on what type of Budgeting Method and process to be used.

Solution:
Maria needs to hold a meeting with all stakeholders engage in budgeting formulation and provide strategic guideline on the budgeting method and process to be used in preparing the budget.

There is need for a standardized approach on defining the magnitude of incrementals, be it a percentage figure or getting new quotes from vendors and service providers.

Maria should work with individual program manager to go throupgh the draft to revise the cost with inputs from markets prices.

The policies that Maria would use and will be profitable is setting guidelines. I will set my guideline which includes estimating my income, estimating costs, reviewing and providing feedback on program budgets and finally approving the budget after it has been examined.

The policies that Maria would use and will be profitable is setting guidelines. I will set my guideline which includes estimating my income, estimating costs, reviewing and providing feedback on program budgets and finally approving the budget after it has been examined.

Before the start of the budgeting process, Maria must provide certain guidance to the program managers for instance policies that will guide the development of the budget, a common template who all the teams shall use to ensure that the budget is standard and guiding principles on the expenditure levels and ambit of increase or decrease in spending per line item.

Maria and the other managerial teams should create a guidelines to standarized the process and help each department to set the equitable budget.

I'm sure Maria didn't share the Guidelines with Program Managers, a tool that will restrict them. Financial Guidelines should be used to solve this problem. The Guidelines will address scenarios of such as they are Standard Operating Procedures (SOPs) for Budgeting. Also, they will support financial good practices.

Policies will serve as a guide to all units and also provide a standard for coherent and consistent budgets. Policies on per diem, accommodation, meals, cost percentages can all be helpful

To address the issue of inconsistent cost estimates provided by program managers, Maria can implement a standardized budgeting process and establish clear guidelines for estimating costs. She can provide program managers with standardized budgeting templates outlining specific cost categories and requiring detailed justifications for each expense. Additionally, Maria can offer training sessions to educate program managers on accurate budgeting techniques and encourage the use of historical data and benchmarking to inform cost estimates. Implementing a review and approval process involving multiple stakeholders, along with ongoing performance monitoring against budgeted expenses, can help ensure accountability and transparency. Maria should also foster open communication within the organization, encouraging program managers to discuss any budgeting concerns or challenges openly. Lastly, she should address any suspiciously low or inflated cost estimates directly with the program managers involved, providing constructive feedback and guidance to promote fairness, accuracy, and consistency in budgeting practices. Through these measures, Maria can establish a robust budgeting process that empowers program managers while ensuring that each program receives a fair budget allocation.

I would ask the program managers to revise their budgets and submit them again a month later. Taking the following policies as a guide to avoid these issues.

Guidelines for salary increases
Carefully consider what types of raises it will award this year.

Updating income/expenditures estimates
Managers to apply a general rate of inflation to all of their expenditures or get new quotes from vendors.

Income and expenditures goals for programs and departments
Departments should seek to meet certain targets and cap expenditures at a certain level. As per the templates and the instructional materials provided.

Contents and format of the draft budgets
Program managers to list expenditures with both expenditures and income recorded. Only income that is confirmed.
A specific format needs to be used with the accounting system based on the templates and the instructional materials provided.

Number of draft budgets
The number of drafts of the program budgets expected and the number of versions of the budget as per the templates and the instructional materials provided.

Maria in jer position as(finance amanger)its always better to set the objective and goals to achieve as an organization. This helps the employees to work towards that achievement. On the other had Maria needs clear income estimates on each program which helps will help the program managers to align their expenditures on the income given to them. This will help her not to get so many drafts of the budget.

Yes, there are a few policies and processes Maria could implement to address the inconsistent budget estimates from her program managers:

Develop standardized budget guidelines and templates that clearly outline the required formats, projections, historical comparisons, and supporting details expected in budget submissions. This promotes consistency.

Schedule one-on-one meetings with Paolo and Francisca to review their draft budgets, discuss observed issues privately, align on expectations, and agree on an action plan to address concerns through collaborative revision.

Implement a peer review process where program managers share draft budgets for input and feedback from colleagues. This allows identification of unrealistic projections and helps reach balanced budgets across programs.

Require multiple budget drafts to enable refinement and course-correction based on Maria's feedback over multiple iterations. Comparing proposals to previous years' spending could highlight questionable estimates.

Ask for detailed justification and supporting documents to substantiate all budget proposals that seem inflated or deflated compared to historical norms. This evidence can back up realistic revisions.

The goal should be facilitating an open, structured, and accountable budgeting process for reasonable and equitable allocation of resources to all programs.