Budget committee definition
/What is a Budget Committee?
A budget committee is the group of people within an organization that reviews, adjusts, and approves the budgets submitted by department managers. Committee members also review and approve capital budget requests. Once the budget is finalized, the committee then switches to comparing actual results to the budget, and taking steps to ensure that actual results do not stray far from expectations.
Who is on a Budget Committee?
Since the budget should support the strategic direction of the organization, all members of the budget committee should be conversant in the details of the entity's strategy; this means that they are all members of senior management. A few specialists may also be members of the committee, such as a financial analyst who is conversant in the nuts and bolts of the budget model; these individuals can answer questions about how the budget model functions.
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The Budget Manual
A budget committee typically follows the procedures contained within a budget manual. This document lays out the timing of the budget creation process, who is responsible for which deliverables, what information is supposed to be prepared, and who can approve the budget. Having this manual in place makes it easier to coordinate budgeting activities, and tends to result in a budget being completed roughly on time.