For enterprises, one of the most important things to maintain is a balanced budget. If a company is able to manage its finances well, other successes are likely to follow. But without the ability to keep spending in check, it’s possible that projects will ultimately have to be put on hold.
According to the Richmond Times-Dispatch, it recently came to light that the Washington Redskins’ initiative to build a new training facility and park in Richmond, Virginia, is $800,000 over its original $10 million budget. The source noted that the Richmond Economic Development Authority (EDA), which was in charge of the construction, may not have had the authority to approve extra spending, something the Richmond City Council is looking into.
“I think we have to work out a plan to ensure there is better communication between the EDA, the city administration and the city council,” council president Charles Samuels told the news provider. “We’re going to be asking … a lot of questions to ensure we know exactly what’s happening and don’t get caught in a situation where the EDA can’t repay.”
The Charlottesville Newsplex reported that the extra money for the project will be supplied through a reserve fund provided by private donors.
In order for organizations to ensure they don’t run up against unexpected budgetary issues, audit solutions should be implemented frequently. By investigating the state of an enterprise’s finances early and often, problems can ultimately be avoided.