Budget Development (SF424A), Budget Management, and Budget Reconciliation

The Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR 200) create uniform administrative requirements for federal financial assistance awards. According to 2 CFR 200, a recipient’s and subrecipient’s financial management system must be sufficient to document compliance, prepare timely fiscal reports, and track expenditures. Fiscal planning for compliance involves budget development, budget management, and budget reconciliation. Budget development creates the initial budget plan for a federal financial assistance award. Budget management focuses on fiscal processes involving tracking, control, and oversight of spending. Budget reconciliation is used as an internal control mechanism that compares actual expenditures with budgeted amounts for an award.