Procurement – obtaining required goods or services. Competitive tendering process – invites companies to quote for the supplying the goods or services to ensure value for money. Commissioning – checking that a process or project has been carried out as required. ‘... a large amount of public sector activity involves the commissioning and purchasing of goods and services. Doing so effectively requires a clear understanding of what will most appropriately address the needs or wishes of the service user, making use of market research, good planning, financial and performance management, sharing best practice and learning lessons.’ National Audit Office Monitoring The National Audit Office monitors central government. The Audit Commission monitors local public services. Budgets What are budgets? A budget is an itemised statement of finances available over a specific period. Budgets are either: Capital Operational. Capital budgets relate to planned spending on fixed assets such as equipment or machinery. Operational budgets relate to the planned income and expenditure of a specific activity over a period of time. Overall purpose of budgets To plan, monitor and control spending throughout the organisation. To manage financial resources effectively. To authorise and delegate authority for decision-making based on finance. Functions of budgets Investing in necessary equipment (capital) Ensuring sufficient resources for operation (operational) Managing cash flow Allocating resources Establishing priorities Managing financial resources effectively Authorising and delegating authority Co-ordinating and controlling activities
Procurement – obtaining required goods or services. Competitive tendering process – invites companies to quote for the supplying the goods or services to ensure value for money. Commissioning – checking that a process or project has been carried out as required. ‘... a large amount of public sector activity involves the commissioning and purchasing of goods and services. Doing so effectively requires a clear understanding of what will most appropriately address the needs or wishes of the service user, making use of market research, good planning, financial and performance management, sharing best practice and learning lessons.’ National Audit Office Monitoring The National Audit Office monitors central government. The Audit Commission monitors local public services. Budgets What are budgets? A budget is an itemised statement of finances available over a specific period. Budgets are either: Capital Operational. Capital budgets relate to planned spending on fixed assets such as equipment or machinery. Operational budgets relate to the planned income and expenditure of a specific activity over a period of time. Overall purpose of budgets To plan, monitor and control spending throughout the organisation. To manage financial resources effectively. To authorise and delegate authority for decision-making based on finance. Functions of budgets Investing in necessary equipment (capital) Ensuring sufficient resources for operation (operational) Managing cash flow Allocating resources Establishing priorities Managing financial resources effectively Authorising and delegating authority Co-ordinating and controlling activities
Principles-of-Business.docx