Reference no: EM13133613

Both the budget process and budgets themselves can impact management actions, both positively and negatively. For instance, a common practice among non-profit organizations and government agencies is for management to spend any amounts remaining in a budget at the end of the budget period, a practice often called "use it or lose it". The view is that if a dept manager does not spend the budgeted amount, top management will reduce the next years budget by the amount not spent. To avoid losing budget dollars, dept managers often spend all budgeted amounts regardless of the value added to products or services. All of us pay for the costs associated with this budget system.

Now, write a one half page report to a local 'not for profit' organization or govt agency offering a solution to the "use it or lose it" budget problem.