Question

Why is it important to distinguish and make a clear delineation between the grant budget and the operating budget?

Answer 1

It is important to distinguish and make a clear delineation between the grant budget and the operating budget because

1) The operating budgets tells us the expected cost to be involved on budget whereas grant budget tells us when an operating costs is granted to be expended.

2) The operating budgets determines only the sum of expected costs whereas grant budget determines the execution of costs.

3) The operating budget is prepared once in a year at the beginning where as grant budgets are prepared periodically ie. monthly or quarterly.

4) The operating budget provided us the expected figures whereas the grant budget provides us exact figure of costs.

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