The Australian National Audit Office has published a Better Practice Guide for Federal agencies on developing and managing internal budgets, replacing a previous Guide issued in 2003.
Internal budgets show an organisation’s expected financial performance, financial position and cash flows disaggregated by area of responsibility. According to the Auditor General, internal budgets are a fundamental element of an organisation’s financial management framework, and significantly contribute to the achievement of an organisation’s goals and objectives.
The purpose of the Better Practice Guide is to assist organisations better manage internal budgeting activities. It includes a range of principles and techniques designed to embed internal budgeting in an organisation’s planning, control and accountability systems.