Establish a Budget
Meeting the costs of the core team should be established at the scoping meeting
but setting a budget for the full audit process should be deferred until all of the
tasks and individuals to be involved in the auditing process have been determined.
The process will have require estimated costs for:
Redirecting internal resources to work on the audit (these include staff time
and IT equipment)
Purchasing external equipment (such as a GIS system for data analysis)
Services required for work on the audit or the putting out of a contract for
tender (such as carrying out surveys, focus group sessions).
Quotes should be obtained in advance for items of equipment and services that the
partnership is intending to purchase. It is vital that the cost of staff time is
not underestimated; this is usually the largest source of expenditure, but is often
under-costed.
A contingency fund should be provided for in the budget. Regardless of the accuracy
of estimates of costs, unpredictable situations may arise during work on the audit
i.e. an unexpectedly low response to a survey of local residents, necessitating its
repetition.
On the basis of the costings and reserve, the overall operating budget for the
audit can be calculated. The operating budget can be broken down on a month-by-month
basis. This can be achieved through the project plan, which should indicate when tasks
will be completed, and when specific services and individual staff's time will be
utilised.
Actual expenditure against planned expenditure should be monitored and any significant
discrepancies investigated. This may indicate departure from the overall plan for
the audit.
Effective detailed planning should limit budget difficulties and the majority of
financial problems that can occur are likely to revolve around slippage in time-scales.
Slippage need not lead to problems if there are sufficient contingency funds. Priority
should be given to completion of those tasks identified as having the potential to
delay the whole project (see Critical Path Analysis). Delay in these areas may lead
to an overspend in the budget even with a contingency fund.
Costs for ongoing auditing process should also be determined at an early stage
to ensure that resources are available to identify and maintain the effectiveness
and strategy implementation.
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