Budgeting system resource allocation

The budget is a key tool for planning, control, and decision making in virtually every organization. Budgeting systems are used to force planning, to facilitate communication and coordination, to allocate resources, to control profit and operations, and to evaluate performance and provide incentives. Various types of budgets are used to accomplish these objectives. 

Key operational components of an information technology plan include provision for maintenance of current systems. Software maintenance costs alone can typically run from 18 to 22 percent of software list prices and the qualified human resources necessary to support installed systems. Typically, information technologies in health care systems are either undeiihinded or place an unreasonable emphasis on administrative systems. An allocation of iq) to 6 percent of the annual operating budget for information systems is not unrealistic. A summary of contemporary infoimation systems is included in the Table 37.3. 

The resources allocated to the UN by its member states are grossly inadequate. The annual budget for the core functions - the Secretariat operations in New York, Geneva, Nairobi, Vienna, and five Regional Commissions - is 1.25 billion. This is about 4% of New York City s annual budget - and nearly a billion dollars less than the yearly cost of Tokyo s Fire Department. The entire UN system (excluding the World Bank and International Monetary Fund) spends 12 billion a year. By comparison, annual world military expenditures - 1 trillion - would pay for the entire UN system for more than 65 years. 

Safety budgeting is allocating financial and other resources necessary to achieve the safety objectives. A budget allocation may be required for the incentive schane. There may be training costs relating to the implementation of a safety systan. Mechanical or structural repairs or modifications may be needed to eliminate hazards reported through the safety system, and these expenses must also be budgeted for. 

The master schedule should be prepared and updated throughout the system life cycle to establish key events, their significant tasks, and the criteria by which completion of significant tasks are determined. A properly designed master schedule should allow for the scheduling of activities associated with tasks, allocation of resources, budget preparation, assignment of personnel, establishment of task start and end dates, and event completion criteria. 

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