What tool sets financial expectations and objectives for an administrator to achieve?

A budget serves as a critical tool for setting financial expectations and objectives for administrators. It outlines the expected revenues and expenditures over a specific period, usually a fiscal year, enabling administrators to allocate resources effectively and make informed decisions. By detailing planned financial activity, a budget helps administrators understand what is achievable within their financial parameters and guides them in evaluating performance against these set objectives.

While a financial plan provides a broader strategy for financial growth and management, it may not contain the specific amounts allocated for various activities. A forecast predicts future financial performance based on historical data and trends, but it may not set concrete expectations or guidelines. A report summarizes past performance and outcomes but does not establish future financial targets. Thus, the budget is the most relevant tool for establishing concrete financial expectations and objectives that administrators aim to reach.