Children's Summer Expense Project

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In any business mistakes are bound to happen. With the Make a Way foundation it has to deal with misallocation of funds, which takes away from their Children’s Summer Expense Project. This type of mishap can cause problems within an organization monetary wise but trust also. Oversights whether it is in the production process, materials, and/or checks and balances can make a difference in the success of the company not only that quarter, but that year too. That’s why it is important to fix the problem before it becomes worst, or causes other problems that were not budgeted in. After taking the time to look over the Make a Way Foundations financial report, there were three reasons believed to be the grounds for the error. One reason is the communication between departments (MUSE). A lot of the times with so many activities going on, department heads tend to not articulate issues properly or not share any information at all with each other or different departments. In doing this it can make existing or future problems more costly on the company. When this happens, it takes money that was not budgeted in to be misappropriated to other areas unforeseen as a problem. Another problem with miscommunication is it can lead to out dated data from other departments (MUSE). This is why it is always good to have a contingency plan or checks and balances in place to ensure realistic forecasting. Another reason is unexpected issues/problems. No company can predict a hundred percent that their plan set in place will work out. This too can cause miscommunication due to certain items not being reported properly. For example, if a company only ordered 100 units of material compared to their usual 50 units for the year, in case of an increase in sales. Now let’s say they sold over that, but did not count in the extra materials in the budget, or the extra cost for them to order it. This moving of funding can cause them to be short in funding in other areas that may need assistance later in the year. That’s why it is good to keep a savings or other finances available, besides your budget, to ensure not many out of pocket expenses. The last reason is not properly monitoring funds. All organizations should look over their financial reports on a
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