Question

Assist in the preparation of the organization’s annual budget estimates and the forecasting of expenditure, including participation in the formulation of the organization’s development plan.

1. Using the above duties, identify possible strategic objectives to which these duties might apply.

Answer 1

These functions of preparation of the organization’s annual budget estimates and the forecasting of expenditure is a part of the job of the finance team of an organisation.

The strategic objectives to their duty would then be to :

1. Mitigate the risk , i.e. by regulating the expenditure of the company. This maybe done by making processes easier and incorporating managerial permissions for approval of an expense.

2. Friction Reduction. By being restrictive in nature, there might be frictions in among departments which hinder achievement of strategic objectives. So, this must be curbed.

3. Accuracy of Budget to ensure strategic decisions can be taken more accurately.

4. Debt Payment Plan. The department must plan for debt payment to comply with long term strategic objectives of the company.