Finance and Operations Book Procedures The Rolling Budget

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Summary / Purpose

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1. The budget for FY09 was approved by the Board and Members Assembly in June 2008. This is the total approved budget or CAB as it is often known. This budget will include all sponsorship funded expenditure plus expenditure on those grants that were confirmed at the time the budget was prepared. 2. Since the original budget was prepared new grants will have been obtained. Once these new grants are entered as a GAD onto GTS, then expenditure on this grant will become confirmed. Countries are initially notified of the additional amount of confirmed grant expenditure through the indicative grant funding process. This process allocates the committed grant income of each GAD over the life of the GAD. Each country has the opportunity to change the timing of the expenditure when the report is issued each month. This process has been fully explained in separate instructions issued to finance managers in October 2008. 3. During the year there may be other changes to the approved budget. Typically these are either allocations from the CEO disaster fund or requests for additional budget that have been approved (eg Capex). 4. Every month an updated rolling budget is issued. An example of the latest update is attached. The rolling budget has separate sections for capex, depreciation, international salaries, other sponsorship funding and grants budgets. Each section starts with the total approved budget and adds any changes arising from new GADs or other changes, as set out in paragraphs 2 and 3 above. The sum of the total approved budget plus any changes is called the total adjusted budget for each country, which is shown in both local currency and in euros. The rolling budget supersedes the CAT process and represents the authorisation to

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each country to spend up to the amount shown in the rolling budget in local currency for each country.

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