Financial Management & Digital Accounting · Intermediate level

Intermediate level · Module 5: Budget Management and Donor Reporting · Lesson 1 of 3

Departmental and Project Budgets

Build budgets from activities and link them to plans.

In this lesson you will

  • Build an activity-based budget
  • Combine departmental budgets

Key concepts

activity-based budgetingunit costsbudget notesconsolidation

The lesson

Build budgets from planned activities: number of trainings × participants × unit cost for venue, meals and transport.

Budget notes explain each line's quantities and unit costs so reviewers and donors can follow them.

Departmental budgets are combined into the organisation's budget and checked against expected income.

Step by step

  1. List planned activities.
  2. Estimate quantities and unit costs.
  3. Write budget notes.
  4. Consolidate and check against income.

Practice activity

Build the project budget with notes.

Expected result: An activity-based budget with clear notes.

Check your understanding

  1. What is activity-based budgeting?

    Show answer

    Building costs up from planned activities, quantities and unit costs.

  2. Why write budget notes?

    Show answer

    So reviewers can follow how each line was calculated.

Taught live by an instructor — online or in person. Free course lessons are for self-study and do not lead to a certificate — see registration options.