Unit 2: Discussion question 2

Budgetary Allocation

Financial reporting is an important part of any institution as it helps determine the congruence between the revenues and the expenditure within the entity in question. While creating a budget, there is always the necessity to determine the effective allocation of the funds, and how they would be used to meet the needs of the various projects budgeted for (Carlin, 2005). For the general fund and every other special fund that makes the use of a budget, it is imperative to develop a budgetary comparison schedule to aid in the assessment of the appropriate utilization of the budget.