Introduction to event

3.5.1 Budget Management
Budget management consists of a series of tasks and steps designed to help manage 
the costs of the event, the steps are:
 Defining the Budget
 Executing the Budge 
 Controlling the Budget 
 Updating the Budget
Inputs for Budget Preparation
Inputs: Inputs for the event budget management include the following documents or 
sources of information:
 Event contract or initial budget 
 Resource requirements
 Resource cost estimates 
 Activity duration estimates

---

 
Event Management HM-402 
Uttarakhand Open University 
50 
 Historical information
 Market conditions
 Donor and organization policies 
Outputs: The event team will use the above information to develop three important 
documents for the event: 
 Cost estimates by activity
 The Event Budget 
 The Budget Variance Report
Event Budgeting is performed on the initial stages of event planning and usually in 
parallel with the development of the event schedule. The steps associated with 
budgeting are highly dependent to both the estimated lengths of tasks and the 
resources assigned to the event. Budget management is the process by which costs or 
expenses incurred on the event are formally identified, approved and paid. Purchase 
order forms are completed for each set of related event expenses such as consulting 
services, equipment and material costs. Depending on the authorization level the 
purchase order forms are approved by the event manager and recorded by the finance 
unit for tracking, donor reporting and auditing purposes. Budgeting serves as a 
control mechanism where actual costs can be compared with and measured against 
the budget. The budget is often a fairly set parameter in the execution of the event. 
When a schedule begins to slip, cost is proportionally affected. When event costs 
begin to escalate, the event manager should revisit the Event Plan to determine 
whether the scope, budget, or schedule needs adjusting.