Budget questions

Hi all

I have a quick favor to ask for any of you that are engaged in project finance.
In our final budget vs actuals for a project, the salary lines for a few staff are overspent by up to 30% and the verification team has asked for explanations on these. Now since all the salary lines are overspent, its not like we can say it balances off with savings in other salary lines so was hoping on a few suggestions here. I know I'm the one who has the background info on the project and would be able to explain this better but maybe some generic answers or suggestions to assist please.

Thanks a bunch!

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ianon

What are the reasons behind the overspent?

boopy · 26-30, M

@ianon The actual reason is we just didnt track it well enough when we prolly should have reduced the allocation to salary when we forecasted it leading to an overspending at the rate that we were allocating

ianon

@boopy so then you allocated a surplus of investment on salary because of faulty estimations. So the overspent money should really still be viable somewhere?

ianon

@boopy There is literally so very little information. Like others have implied you could argue maybe a time benefit if the project was completed earlier than you projected and increased profits by launching it quicker or focus on quality ,but only if those two options are present,or like an accountant would likely do,you could look into other departments like supply and look for savings in there to balance those,either way they will look for an explanation I would imagine which you have and it doesnt sound good for you

Blodyn · 22-25, F

@ianon In business we always underestimate the value of intellectual property. We think in terms of wages. You do all the time.

ianon

@Blodyn I do not disagree trust me,and not just intellectual property but manual labour too. the problem is trying to actually monitor that in the first place in a manner that is accurate and fair so..

Blodyn · 22-25, F

@ianon It has been so enlightening to speak with you. I am starting up my own jewellery business and you have such a balanced view on business.