Budget Transfer: Change the Allocation
A budget transfer changes the amounts assigned to budget headings. It concerns the plan or spending authority, depending on the organization's actual budget rules. It does not itself move money between bank accounts. A proposed change remains a proposal until the required internal and agreement permissions exist.
Cash Transfer: Change Where Cash Is Held
A cash transfer moves money between accounts. Moving cash between your own accounts does not, by itself, revise a budget heading or remove a fund restriction. The record and permission questions differ from those for a budget change.
Two Fictional Before-and-After Views
All amounts are invented USD. These are separate examples, not connected transactions. The budget figures describe a PROPOSED change, with approval unresolved. The cash illustration assumes permission separately confirmed, two accounts of the same organization and no fees, tax or exchange movement. It reports no real transfer.
| Budget Heading | Before | Proposed Change | Proposed After |
|---|---|---|---|
| Travel | 1,000 | -200 | 800 |
| Training | 500 | +200 | 700 |
| Total | 1,500 | 0 | 1,500 |
The proposal shifts 200 USD between headings. Its total remains 1,500 USD; it changes no cash balance.
| Own Cash Account | Before | Illustrative Movement | After |
|---|---|---|---|
| Operating | 3,000 | -500 | 2,500 |
| Project | 1,000 | +500 | 1,500 |
| Total | 4,000 | 0 | 4,000 |
Here 3,000 - 500 = 2,500 and 1,000 + 500 = 1,500. Cash remains 4,000 USD across the two accounts. Neither budget table changes.
Permission Is a Separate Question
The budget holder checks actual internal authority and any funder agreement requirements before a budget change. The authorized banking role checks permission for a cash movement. Neither role acquires the other's powers because a table balances. The name of a receiving account does not establish which restricted fund may use its cash.
Common Confusion and Quick Test
Ask which record would change: budget headings, account balances or both through separate authorized actions. More money in the project account does not mean more budget for training. More proposed training budget does not show that cash is available. Use the cash forecast for timing and the budget comparison for expenses; this page supplies no cash-shortfall procedure.
Sources and Scope
The definitions and invented tables are OpenAid teaching illustrations. CC8, updated November 27, 2024, treats budgets, banking and expenditure separately in England and Wales. The Commission's 2011 funds guidance addresses controls over accounts. Its 2011 partnership checklist raises budget-adjustment questions; it grants no permission. ACNC's Australian record examples include cashbooks and banking records. None defines universal NGO transfer rights or accounting entries.