Author Archives: hbpublications

Devolving Budgets – Theory and Practice – Insight 09

| July 2, 2026

Our first publication was Managing the Devolved Budget, and it remains our best seller. The concept of devolving budgets is not new. In fact, the debate about “Devolve or not to Devolve” has always, and continues to be, a topic of discussion. This insight considers the pros and cons of devolvement, the theoretical benefits and the practical challenges. The theory of devolvement is the process whereby budgets are devolved to an individual or organisation who becomes the budget holder and who is then totally responsible and accountable for that budget. This requires management and financial responsibilities to be aligned such that the budget holder is accountable for the financial implications of their decision making. The first step in this process is decentralisation, allowing centrally held budgets to be devolved within the decentralised structure. Getting the decentralised structure right is key to successful devolvement. This works at all levels within an organisation, within a service, within a department and within a team. The nearer budget devolvement is to service delivery, the

No Accounting for Accountability. Insight No. 8

| June 18, 2026

The above poster sets out why accountability matters and gives a financial accountability framework. All organisations will have financial policies and procedures which should be known and adhered to by those responsible for budgets and spending. The level of this knowledge and awareness should be assessed on a regular basis. Our online assessments may prove useful in some areas such as fraud awareness. They can be tailored to correlate to the localised procedures and ensure good practice becomes an organisational strength rather than a weakness.

Zero Based Budgeting – when to use it and when not!

| June 4, 2026

It is important to understand the definition of Zero Based. As described it assumes that the budget can be developed from first principles, with a clean sheet, as if from a new starting position. This allows for complete alignment with the objectives for the activity/service, along with freedom to decide the best possible approaches. Sometimes, in the public sector there is often a base from which the budget setting process has to begin. For example, staffing, (or staffing constraints), accommodation, location, etc. ZBB must be put in the context of the environment and not looked at in the purist form. It does however remain a very good approach in many areas, such as a new service or aspect of a service; a new project; a new approach; and so on. ZBB is also very useful as a “reset” to existing services and projects, particularly where they do not deliver the outputs required within a budget allocation. Some public and nonprofit sector organisations often find themselves facing numerous constraints restricting the

ERP Systems financial management reports

| May 21, 2026

The disconnect between financial reports from ERP Systems and financial decision making Organisations in the public sector mainly depend on their staff to achieve their service objectives. Hence resources should be allocated to develop the core skills of these staff to enable objectives to be achieved. This approach underpins HCM (Human Capital Management) strategies and forms a major part of developing and retaining staff who can assist in delivering the 3Es (Economy, Efficiency, Effectiveness). The ability to understand financial information and use if for decision making should be one of those core skills for anyone with financial responsibilities. In this insight we focus on one of the key pain points of achieving positive ROIs on significant investments in ERP systems. How do we ensure that our ERP system financial management output information is understood and utilised by the end user for decision making. Where the end user is often a staff member without financial skills, e.g. a budget holder in a non-financial role. Set out below are the stages in

Public Services at what cost? Insight 05

| May 14, 2026

Knowing the true cost of public services is essential to financial management Financial management is not just about managing a budget, but also about managing true costs. Some services are easier to cost than others when the unit of service is clear cut, such as the cost of a placement. However, it is possible to attribute costs to all services related to productivity and output. It is only when such exercises are undertaken that true comparisons can be made and value for money established. In this insight we identify the key stages that should be undertaken when establishing the cost of a service. For example, providing care home services incurs a wide range of costs including property, equipment, staffing, supplies, maintenance, management, etc. These costs are different in type. Some are fixed, others variable, and some a combination of both. Within the definition of these, some costs can be controlled in the short term, whilst others are uncontrollable. The unit of service in this case is most likely cost per

Forecasting Outturns should not be guesswork! Insight 04

| May 6, 2026

Financial forecasting is essential as part of managing budgets Looking ahead each month should be part of any budget monitoring routine. It should consider what part of the budget has been spent to date, how much budget remains; and is there sufficient budget to cover the future planned expenditure to the end of the year? The answers to the first two questions should be straight forward and available from the financial management systems. Regardless of the ERP/software being used, a report should be able to provide the spend to date and budget remaining. The first issue may be, is the spend to date accurate, complete, and up to date? (See future insights on commitment accounting). The topic of this insight is “future planned expenditure”. This is effectively a forecast, and it is required to “project the outturn”, that is how much will be spent by the end of the  year. The future forecast is likely to change each month due to internal and external factors. In month one, eleven months

Insight 03 – 5 Warning Signs Your Budget Is Heading for an Overspend

| April 29, 2026

Overspending does not happen on its own! Spending has a causal factor. Expenditure is created as a result of the organisation agreeing to pay for something, whether it be staff, products, services, contracts, etc. The expenditure takes place as a result of either a plan, or a need that needs to be fulfilled. The driving force may be demand, desire, or direction. Regardless of the type of expenditure, revenue or capital; statutory or non-statutory; it is important to know when expenditure is going to exceed the budget, and by how much. The sooner this is known the more likely an organisation can take corrective or mitigation actions in the short term. In the longer term there may be a need for structural change or realignment of resources. In order to assist in gaining this foresight, we identify 5 warning signs your budget is heading for an overspend. Projecting the outturn every month will help to crystalise the warning signs and help to prompt action. All five areas and much more

Why Budget Monitoring May Fail — Even When Reports Are Accurate

| April 23, 2026

Series 1 – Insight 02 Budget monitoring is not a tick box exercise. Most organisations produce budget monitoring reports of one kind or another. They may be directly from the accounting system or prepared on a spreadsheet. The reports should be designed to assist users and hence tailored to suit organisational needs. Regular budget monitoring should be fundamental to the role of any staff member with budget responsibilities. Budget monitoring actions are important routines and include: Training in each of the above will enhance budget monitoring and yield better results. Ultimately budgets need to be monitored to ensure the financial resources used are delivering the organisation’s objectives. If not, action needs to be taken. Managing the Devolved Budget is an easy read and provides even more insight. #PublicSectorFinance #BudgetManagement #NonProfitFinance #FinancialLeadership #BudgetHolders

Financial Management Insights for the public and nonprofit sectors

| April 15, 2026

Series 1: Insight 01 – How to set a budget HB Training and Publications International is releasing a series of insights to assist with financial management in the public and non profit sectors. We are well placed to share our experience and expertise in the field. One of the directors is currently completing her PhD in public sector financial management this year. These insights will take a topic, or part of a topic, and provide a sound bite for anyone interested in improving their skills and underpinning knowledge in the areas of budgeting, budget monitoring, and control. They are not meant to be comprehensive but should enable budget holders and managers consider the benefit of learning more about these topics. How to set a budget There are several budget setting techniques that can be applied to both expenditure and income budgets. They can be used independently or combined depending on the type of budget being set. The most popular techniques include: Each have their advantages and dis-advantages. It is worthwhile

6 Budget Setting Techniques – Explained

| March 17, 2026

Introduction The key to effective budgetary control is the budget setting process. Budgets should accurately reflect the service being provided and there are a number of budget setting techniques that can be applied to both expenditure and income budgets. They can be used independently or combined depending on the type of budget being set. The crucial techniques include: Incremental Budgeting This technique relies on using an historic base as a starting point for budget setting. This is often the budget or the actual figures for the previous year, or some combination of the two. The base is then used to formulate the budget for the following year by taking each budget heading and either adding or subtracting an inflation factor from the base figures and adjusting for other known factors such as savings or approved growth. Advantages Dis-Advantages Incremental budgeting is best used for certain items of expenditure which are unlikely to change from year to year. For example, when staffing remains constant, salaries can be budgeted for incrementally where the