Procedure on Budgeting, Rights and Responsibilities

Attachment 2.3

Procedure on Budgeting, Rights and Responsibilities

OSISA 2007

Budget Strategy Initial planning for strategy and preliminary budget proposal

  i.  PM is responsible for developing a strategy

  ii.  Comment from FD and GM (opt.)

  iii.  ED approves

Submit proposal to Donor (third party funding)

  i.  ED, PM, FD

Sign donor-contract for receiving funds (third party funding)

  i.  ED

Program structure development Based on budget strategy (PM), program structure is developed by the PM (T1 codes) according to GMS requirements is the coding representation of the Program manager’s strategy. T1 code is structured with hierarchy levels as described in the document “T-Codes explained” FD enters the coding in GMS, based on submitted strategy by the PM. Budget registration in GMS Signed contract – register total as receivable in General Ledger (FD: JE-Preset “Register Donors Contract”) Budget Addition document is created in GMS (PM – PA should be given the rights to input in GMS) to allocate the received funds from donor to the respective program lines (created earlier by FD).

  i.  Budget Addition document is submitted for approval by PM or PA with PM signature

  ii.  Budget Addition document may be approved/rejected by FD

Should it be necessary, a Modification budget document is created by PM/PA with the written confirmation from the PM. This allows moving unallocated (non-committed) funds to be moved from one program line to another (same donor Working with activities

NB! All operational projects (the so called operational grants) will be managed in Budgeting through Activities. They will not be entered s applications anymore and executed as grants! – refer to procedure – Treatment of Operational Projects

No expense is possible without having an activity to charge it against When the need for activity comes (particular event, group of events, grant, administrative needs, salary etc) a new activity code is created (PM responsibility to define, PA responsibility to input) Activity is funded from one or more program lines (multi-funding) as needed. This is done with “Activity addition” budget document PM responsibility to define, PA responsibility to input)

  i.  “Activity addition” document contains detailed breakdown of the budget by expense categories/grant fund (PM responsibility to define, PA to enter if requested)

  ii.  “Activity addition” documents are submitted by PM, PA to FD for review and approval

  iii.  “Activity addition” may be approved or rejected - FD

  iv.  Upon approval, funds from the specified programs are allocated to that activity (committed funds).

  v.  Should additional funding be necessary, more “Activity addition” documents can be created – same procedure applies

Activity modification. In cases when modification of activity funding is necessary (moving between expense categories, reducing funding), “Activity modification” document is created (PM, PA, FD-approval)

NB! All Budget Documents can be created by PA; however, the cover document submitted to finance for approval, should be signed by the respective PM.

NB! The program staff’s masks will be adjusted. If your program’s code has changed from last year’s, you will not be able to see it in the Multiyear Budget v Actual report. Upon request such information can be retrieved from Finance department.