BUDGET POLICY BUDGET POLICY 4 4 Running Head: AHA Heart Association

Running Head: BUDGET POLICY
BUDGET POLICY
Name of the Student
Name of the University
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Table of Contents
Introduction................................................................................................................................3
Discussion..................................................................................................................................3
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
The American Heart Association (AHA), one of the oldest and well established non-
profit organisation in the United States, focuses on educating public about healthy living and
funds those who are suffering from cardiovascular diseases and medical researches for the
same. Main goal of the organisation is to make the country free from cardiovascular diseases.
The group was established in the year 1924 as a body to prevent and secure people of US
from heart diseases. In the year 2014, the group issued an additional guideline for preventing
women that suffered from heart strokes and diseases (Saruta & Puig-Junoy, 2016). This paper
aims on discussing the process that AHA takes at the time preparation of its annual budget. It
then provides with necessary recommendations that would help in improving the budget of
the group.
Discussion
Part 1
A budget is a framework prepared by corporate institution in order to estimate the
expenses that are likely to arise in the upcoming financial year and how the company is going
to payoff them. A good budget helps in increasing the productivity and efficiency of the
organisation. Process of budgeting starts with estimating assumptions regarding sales trend,
costs and other factors related to the economy and the business for the upcoming period.
Usually organisations prepare two types of budgets, which are static budget and flexible
budget (Saruta & Puig-Junoy, 2016). A static budget is the one that remains same for the
entire budget period whereas a flexible budget is the one where the budget is altered when
there is a change in the economy or other factors that affect the organisation. American Heart
Association with its headquarters at Della aims at improving the health issues in the United

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States and has taken various measure and policies to improve the same (Heart, 2020). These
steps taken by the group have a major impact on the budget processes of the group.
American Heart Association prepares its budget annually before the start of the
current financial year or at the end of the previous financial year. Board of directors and
executive directors of the organisation establish and revise the budget for the upcoming year
(Heart, 2020). CBO, is a place where regular budget publication is prepared on the basis of
the economic outlook and annual reports of the organisation (Saruta & Puig-Junoy, 2016).
Australian Heart Association takes help from CBO in the annual preparation of their budget
and continuous revision at regular intervals. The functions regarding the budget of the
organisation is prepared at the headquarters of Congressional Budget Office, which is located
in Washington DC at the Ford House office Building (Heart, 2020). The budget of the group
can be accessed from its annual report that is available on the official website of the
American Heart Association.
The Government of the United States or legislative body of the US government has
played a major role in determining the outlines and framework for US’s global health policies
and programmes. There have been a remarkable improvement in the health issues of the
public in America over the last 15 years. This engagement of the US government is carried
out by both the US House of Representatives and the US Senate (American Heart
Association, 2020). They work together with their committee members towards the one
common aim that is to collect funding for the US health program and providing treatment and
protection against heart issues and strokes.
The revenue forecast of the organisation is never 100 per cent accurate. Although
preparing this budget helps in paying off or treat the expenses early. The American Heart
Association forecast their revenue and expenditure in the beginning of the financial year to