Why is it necessary for managers to get approval to move funding from one source to another?

It is crucial for managers to obtain approval to move funding from one source to another primarily to ensure accountability and compliance with the budget. This requirement is rooted in the principles of good financial management and governance that emphasize transparency, responsibility, and adherence to established financial plans.

When funds are allocated to a specific purpose or program, they are typically tied to specific performance objectives and legal or regulatory requirements. Moving funds without appropriate approval can lead to mismanagement of resources, potential violations of laws or regulations, and a lack of accountability for how public funds are spent. By requiring approval for such transfers, organizations establish a system of checks and balances that helps maintain fiscal integrity and ensures that all expenditures align with the overall budgetary framework.

Moreover, securing the necessary approvals serves to document the process of fund movement, which can be critical for audits and reviews. This not only supports compliance but also instills trust in stakeholders, including taxpayers and oversight bodies, that funds are being used as intended and in alignment with strategic goals.