Assignment on Budget Policy

Running head: BUDGET POLICY
BUDGET POLICY
Name of the Student
Name of the University
Author Note:

BUDGET POLICY1
Table of Contents
Introduction......................................................................................................................................2
Discussion........................................................................................................................................2
Budget Policies................................................................................................................................4
Recommendation.............................................................................................................................4
Conclusion.......................................................................................................................................5
Reference.........................................................................................................................................6

BUDGET POLICY2
Introduction
The American Heart Association (AHA) is the oldest and the most significant health
organisation directed towards diminishing the death and disability from cardiovascular diseases
and stroke. It is a non-profit organisation in the United States and was formed in New York City
in 1924 as an association for Prevention and Relief of Heart Diseases (American Heart
Association, 2020). The AHA has been focused on achieving health care reform that will serve
as the best interest for the patient.
Discussion
A budget is an essential tool for motivating employees and attaining better performance
since it provides specific standards and goals which an organisation wants to achieve (Chohan,
2017). It describes the money that an organisation plans to raise and spend for some specific
purpose during a given time period. The American Heart Association deals with cardiovascular
disease and stroke and has been trying to improve significantly in preventing, diagnosing and
treating these problems. Thus, the implementation of such improvement will impact the budget
process of the organisation (Heart, 2020).
The revenue forecast is not 100 per cent accurate. However, the forecasting of revenue
helps to budget expenses early (Saruta & Puig-Junoy, 2016). The officers of the AHA prepare
the revenue forecast, and the outlook or the preparation of the budget is done during the initial
phase of the year. The budget helps to know the target required to be achieved by AHA at
regular intervals. The reviewing procedure of the budget is done at regular intervals to find out
the variation of actual performance with that of the standard.