Reference no: EM132001087

Question - Reviva is a not-for-profit organization that began operations on January 1, 2012. The organization provides support for individuals who are trying to start a new life after experiencing poverty. George Karan, the CEO, is interested in demonstrating accountability to the organization's various funding agencies and private donors. He has heard that some not-for-profits prepare formal budgets for upcoming periods, something that Reviva has not yet done. He is interested in implementing a system of budgetary control and wonders if such a system would affect Reviva's recordkeeping and financial reporting. George has asked you, as the organization's accountant, to write a brief memo updating him on budgetary control systems.

Required - Write a memo to George briefly describing how a budgetary control system would be useful for demonstrating accountability to Reviva's funding agencies and private donors.