The Budget Committee

A standing budget committee will usually be responsible for overall policy matters relating to the budget programme and for coordinating the preparation of the budget itself. The budget committee resolves difficulties and disputes between segments of the organisation in matters relating to the budget. In addition, the budget committee approves the final budget and receives periodic reports on the progress of the company in attaining budgeted goals.

The budgeting process allocates resources and determines which departments get more resources and which get relatively less. It also sets the benchmarks by which managers and their departments will be evaluated. Therefore, managers should take the budgeting process very seriously and invest considerable energy and time and even emotion in ensuring that their interests, and those of their departments, are protected.