B. HOW DOES ONE INCORPORATE SOUND FINANCIAL MANAGEMENT
IF IT HAS NOT EXISTED?
Building a sound financial program where one has not existed depends on
strong support from the institutional administration. In all cases it will take
time to collect costs, predict income and expenses, and develop budgets. The
administration and the users of the services must be patient and supportive. The
management team must use the eight-step approach that was discussed under
budgeting. This approach will work even if good financial reports and records
are not available. The less accurate the data is that is being used in the
beginning of the process, the more the budget will need to be changed as the
information and data become more precise. It is important for those starting out
to remember to have a defensible plan for implementation and to stick to that
plan. Change is inevitable as budgets and programs are developed, but if no
plan is being followed, the change could be the result of pressure, rather than
good decisions. It is the responsibility of the administration and the management
team to ensure that the changes are made for the right reasons.
B. HOW DOES ONE INCORPORATE SOUND FINANCIAL MANAGEMENTIF IT HAS NOT EXISTED?Building a sound financial program where one has not existed depends onstrong support from the institutional administration. In all cases it will taketime to collect costs, predict income and expenses, and develop budgets. Theadministration and the users of the services must be patient and supportive. Themanagement team must use the eight-step approach that was discussed underbudgeting. This approach will work even if good financial reports and recordsare not available. The less accurate the data is that is being used in thebeginning of the process, the more the budget will need to be changed as theinformation and data become more precise. It is important for those starting outto remember to have a defensible plan for implementation and to stick to thatplan. Change is inevitable as budgets and programs are developed, but if noplan is being followed, the change could be the result of pressure, rather thangood decisions. It is the responsibility of the administration and the managementteam to ensure that the changes are made for the right reasons.
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