Launch offer — 25% off with code LAUNCH-25 See plans →
Microlesson · 5-min read

Budget Committee, Budget Officer, and Budget Manual

## Budget Committee, Budget Officer, and Budget Manual

### Budgetary Control System Hierarchy

```

Chief Executive (President/CEO)

└── Budget Committee (functional heads + a board member)

└── Budget Officer/Controller

└── Individual department budgets

```

### Budget Committee

  • Representatives from various functions of the organisation
  • Coordinates and discusses targets to create a mutually agreed budget programme
  • Integrates activities and facilitates control over business operations
  • Chaired by the Managing Director

### Budget Officer / Budget Controller

  • A full-time senior executive delegated supervisory responsibility for the budget programme
  • Must possess knowledge of the technical side of the business
  • Reports to the President or CEO

Responsibilities of Budget Committee / Budget Officer:

1. Assist departments in preparing their budgets by coordinating with the accounts department

2. Forward approved budgets to department heads and guide them through practical difficulties

3. Prepare periodical budget reports for circulation to individuals concerned

4. Follow up on action items from budget reports

5. Prepare an overall budget working report for Budget Committee meetings

6. Prepare periodical reports for Board meetings comparing budgeted vs. actual P&L and Balance Sheet

### Budget Manual

  • A booklet outlining the objectives and strategy of the organisation for budgetary control
  • Contains:
  • Responsibilities of executives
  • Approval procedures
  • Organisation charts
  • Budget preparation timetable
  • Reporting procedures
  • Record maintenance guidelines

⚠️ Common exam mistakes

  • Confusing the Budget Officer (individual executive) with the Budget Committee (group of functional heads)
  • Forgetting that the Chief Executive holds ultimate responsibility — the committee implements but the CEO is accountable
  • Thinking the Budget Manual is optional — it is a formal, essential document for coordinating the budgeting process
Reference:
Now that you've read this — what's next?
Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.
Start 15-min diagnostic