Budgeting in Schools

Surname 1
Student’s Name
Professor’s Name
Course
Date
Budgeting in Schools
Budgeting is one of the vital activities of any organization. An institution that does not
operate on a budget is likely to fail because of unwarranted or hidden expenditures (Wildavsky
3). I believe that with budgeting, all the schools will be able to cater for their operating expenses.
Considerably, with budgeting, the school administration understands its net worth. As such, the
management will streamline its activities according to its resources. What this means is that
budgeting is essential because it will help the institutions to identify areas that do not require
attention. In an organizational context, there are those needs that are not essential. In spending,
therefore, the administration will channel resources to areas that are sensitive to the running of
schools. Also, budgeting will help in identifying over-expenditure. In some cases, there are those
instances where the management appears to be over-excited hence becoming spendthrift. With a
budget, the managers will observe the minimum and maximum amounts set for every operation.
Another concern for the school is the need to avoid black budgeting. McCaffery and
Jones reveal that black budgeting refers to secretive expenditure that is associated with the
military or intelligence departments (4). However, I believe that this is inappropriate for a school
context. When the management engages in clandestine expenses, it becomes difficult for the
school to account for its funds. What the budget will ensure is that all expenditure is
documented. Some of the elements of this budget will require that expenditures are validated
with the issuance of documents such as receipts. Further, all the suppliers must be known to the
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administration. It is important to note that with black budgeting some unscrupulous employees
could get the opportunity to embezzle resources.
Surname 3
Works Cited
McCaffery, Jerry L., and Lawrence R. Jones. Budgeting and financial management for national
defense. IAP, 2004.
Wildavsky, Aaron. Budgeting and governing. Routledge, 2017.

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