Budget committee
A budget committee coordinates budget preparation and resolves conflicts between functions under the organisation’s governance arrangements. It can review assumptions, challenge proposals and recommend a coherent plan for approval. Membership and authority depend on the business; a committee is not necessarily the body responsible for every detailed calculation. Responsibility for achieving and explaining results should remain identifiable rather than becoming anonymous through collective review.
Worked example
Sales proposes a promotion requiring extra output, while operations reports insufficient capacity. The committee coordinates the assumptions and considers overtime, outsourcing or revised sales plans.
Common mistake
Coordination does not mean automatically accepting every department’s request or imposing a total without understanding operational dependencies.
Where it appears in your exams
| Qualification | Exam | Relationship | Period |
|---|---|---|---|
| ACCA | MA | Direct | September 2026–June 2027 |
| ACCA | PM | Supporting | September 2026–June 2027 |
| FIA | FMA | Direct | September 2026–June 2027 |