Carefully preparing the budgets is the first step in cost-effective, sustainable and accountable financial management, integrating financial and non-financial objectives. Detailed accountancy systems and internal control are necessary to continuously monitor the effectiveness of the financial decisions in achieving the defined goals.
The need to generate additional financial resources is increasingly relevant, in spite of the freedom to allocate or reallocate the funds being frequently limited.
- a. Ensure financial resilience through long-term budget planning, risk analysis of financial decisions and a balanced budget.
- b. Implement performance budgeting (integrate performance data in budget documents).
- c. Use effective financial cost accounting and controlling, and evaluation systems (e.g. spending reviews).
- d. Monitor the effects of budgeting on diversity and gender mainstreaming.
- e. Delegate and decentralise financial responsibilities and balance them with central controlling.
- f. Ensure budgetary and financial transparency and publish the budget information in an easily understood way.