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You leave with: A budget-against-actual line for A-31 with its basis, budget version, source references and open items, ready for the Lesson 4 completeness rubric.
Where this fits: Lesson 4 asks you to define budget against actual as one of A-31's four reporting measures. This deep dive answers the question Eastgate's budget workbook raises: which total counts as "actual", against a budget revised in Q1? You bring back a budget-against-actual line with its basis, version, sources and open items, for check 5 of the completeness rubric.
Watch · 9:30–9:57 · connect accounting one step at a time
Unmesh places the accounting connection last: through MCP servers and APIs, one step at a time, with the current system kept running. Finance stays the system of record, and the grant record reads from it. Watch on YouTube ↗
Track budget and actual spend by linking the approved budget version to Finance's records for the same grant, period and cost categories, then reconciling before you present one total. Define what "actual" means under the reporting basis Finance uses, and keep invoices, approvals and payments as separate facts. An approved invoice does not show that cash was paid or that the amount belongs in this period's expense.
What actual spend means
Actual spend is the amount recorded as spent for a defined purpose and period. A cash view and an expense view can differ on the same date, so every report states its basis, and Finance says which records govern it.
| Term | What it describes | What it does not show alone |
|---|---|---|
| Budget | The approved plan for a scope and period, in a stated version | That the amount has been spent |
| Commitment | An obligation or planned purchase under the organization's rules | That an invoice has arrived or been paid |
| Invoice | A supplier's bill with date, amount and detail | Payment, correct coding or the accounting period |
| Approved invoice | An invoice that has passed the approval process | That settlement is complete |
| Payment | A recorded cash settlement | That all of it is this period's expense |
| Reported actual | The amount included under the approved reporting basis | Completeness, until reconciled to the source |
Two parties keep books in a grant. Horizon's Finance records what Horizon paid Eastgate; Eastgate's accounting records what Eastgate spent. The budget-against-actual measure draws on Eastgate's records.
1. Attach the approved budget and its dimensions
Identify the award, program, legal entity, funding source, currency, period and budget version. For A-31 that is Eastgate Youth Works, Youth Pathways Fund R-2, a one-year grant of $24,000 in US dollars, with the budget uploaded at application as version 1.
If the grant year differs from Eastgate's fiscal year, keep both visible. Do not spread $24,000 evenly across quarters unless that is the approved plan; cohorts starting at different times do not spend in equal slices.
2. Preserve revisions and approvals
Keep the original approved budget and each authorized revision, with its effective date and reason. A practical revision record answers four questions: what changed, who requested it, who approved it and when it applies. Label a proposed revision as proposed until the approval is complete.
Horizon example · fictional
In Q1, Eastgate asked to move $2,000 from materials to transport stipends. Horizon approved it in Q1 and recorded the reason with the approval. Version 2 of the budget lowers materials by $2,000 and raises transport stipends by $2,000. The total stays $24,000.
Q1 spending is compared with version 2 from its effective date, and version 1 stays on the record. Materials running below the original plan is the approved reallocation, not a saving.
When comparing against an earlier report, use the version that applied then, and label any restated view separately. Silently replacing the original plan erases the history an auditor will ask about.
3. Collect supporting records with enough context
An invoice should arrive with its supplier, number, date, amount, currency, budget category and, where it matters, service period. Some actuals come from payroll summaries, approved allocations or journal entries, so a complete invoice folder is not complete spending.
In the pilot, Eastgate uploads the budget workbook it already keeps for its accountant, plus the receipts the reporting plan asks for. Nobody re-keys line items into a Horizon form. Limit access to anything sensitive.
For a shared role, apply the approved allocation share to Finance-confirmed eligible cost. In a separate fictional example, $15,000 of eligible monthly cost at an approved 30% allocation puts $4,500 on the grant: $500 below a $5,000 monthly budget, or −10%. The other $10,500 belongs elsewhere, and a lower figure may reflect a vacancy or timing rather than a saving.
5. Reconcile before presenting one total
Compare the reported total with the Finance-approved source for the same scope and date, and trace each difference to unmatched records, duplicates, timing, credits or allocations.
Horizon example · fictional
Three amounts, three different meanings
Eastgate's approved plan under budget version 2 puts $6,000 of spending in Q1. The expense report from its workbook, reconciled to its accounting, shows $5,400. Recorded cash payments total $4,900. A $500 invoice from the transit provider for bus passes is approved but unpaid.
| Amount | Q1 figure | What it means |
|---|---|---|
| Approved plan (version 2) | $6,000 | What Q1 was expected to cost |
| Reported expense | $5,400 | Spending under the expense basis, including the approved unpaid invoice |
| Cash paid | $4,900 | Payments settled by quarter end |
| Approved, unpaid invoice | $500 | Inside the $5,400, not yet in the $4,900 |
For this exercise, Eastgate's finance lead confirms that the $500 invoice is included in the $5,400 and that the remaining $4,900 has been paid. Under that stated assumption the gap between expense and cash is explained: $4,900 + $500 = $5,400.
Budget against expense is $5,400 − $6,000 = −$600, or −10%. The cash view is separately $4,900. Do not add the unpaid invoice to the expense figure a second time.
The finance lead's confirmation is what lets the expense and cash totals be read together. For shared costs, check that amounts across funding sources add back to the total, and never add currencies without an agreed conversion basis.
6. Review exceptions with context
Check for duplicate invoice numbers, missing fields, unmatched budget lines, an unexpected period, unexplained differences and stale source data, each with a rule and an owner.
Context changes the reading. A quiet line may be expected if the work starts later, and Eastgate's materials line running below version 1 is explained by the reallocation. Compare against the delivery schedule before calling anything a problem.
An Intelligence Cell can read receipts and draft an exception summary; review what it extracted. Two similar amounts are a reason to investigate before anyone calls it a double payment.
7. Resolve the issue without overwriting the source
For a genuine difference, identify the record, state the question and assign an owner. Horizon's grants manager may clarify which activity an invoice supports; Eastgate's finance lead decides its accounting treatment. Never ask an assistant to change a payment status so the view matches.
If one receipt is missing, request that receipt through A-31's record, not the full package. The request, answer and original upload stay together, and the item stays unresolved until the evidence is checked.
8. Close the period with a reviewable snapshot
Record the reporting date, budget version, source refresh date, reconciliation owner and unresolved items. Preserve the reviewed Q1 snapshot so the Q2 update does not silently change what Q1 showed.
When Finance asks for spend against budget per grantee, show each R-2 grantee on the same basis, with its budget version and source date. Spending alone says nothing about cost effectiveness; read it beside the attendance and placement evidence on the same record.
A usable review instruction
Using the supplied approved budget (state the version) and the grantee's Finance-reconciled report for [period], identify the definition and basis of actuals, then map each included amount to its budget category. Keep invoices, approval status and payments separate. List unmatched records, possible duplicates, timing differences and missing source information, each with its file and row. Do not infer accounting treatment or change any record. Reproduce the budget-against-actual calculation only where scope, period and version match, and list the questions Finance must resolve.
Run it in an authorized workspace; posting entries, approving invoices and making payments stay with Finance.
Put it into practice
Trace Eastgate's $5,400
- Using the example above, list the source records needed to support the $5,400 expense figure and its relationship to the $4,900 cash total.
- Record which budget version each line is compared against, and where the $2,000 reallocation and its approval sit.
- Add two test items: a duplicate upload of the $500 transit invoice, and an invoice dated in the previous period. Check whether your view counts either one.
- Write how a reviewer spots each issue and how a correction appears without losing the original upload.
- Carry the result into step 4 of the workbook as A-31's budget-against-actual dictionary row and check 5 of the completeness rubric.
Download the workbook (PDF)
Practice data: horizon-r2-applications.csv · horizon-rubric.csv · calibration-scores.csv · eastgate-q1-update.csv
Check your reasoning before moving on
You need Eastgate's reconciled Q1 expense report, the invoices and receipts behind it, payment records showing $4,900 settled, and the $500 transit invoice marked approved and unpaid. Every line compares with version 2, and the reallocation record shows what changed, who asked, who approved and from when. The duplicate is caught by its repeated invoice number and held as a flag, not deleted. The prior-period invoice is excluded by date unless Finance confirms it belongs in Q1. Pass condition: another reviewer can rebuild $5,400, its basis and the open questions without mixing up receipt, approval, expense and payment.
Questions grant teams ask
What is actual spend in a grant report?
It is the amount recorded as spent for a defined reporting purpose and period, under a stated basis. A cash-payment view and an expense view can differ on the same date, so the report names which one it uses and its source. Ask Finance which records govern the report before labeling any figure "actual".
Is an approved invoice the same as a payment?
No. Approval and settlement are different stages, and an approved invoice may still be unpaid at the reporting date. Use the payment record from the authoritative source to show that cash has been paid, and confirm with Finance whether an approved unpaid invoice is included in the period's expense figure before you count it.
How do you compare budget with actual spending after a budget revision?
Compare actuals with the approved budget version in force when the money was spent, and keep the earlier version visible. Record what changed, who requested and approved it, and when it took effect. If you also show a restated comparison under the new version, label it separately so a reallocation is not read as a saving or an overspend.
How should an accounting-system connection be checked?
Scope and test it for your own setup: the integration or export available, field mappings, permissions, refresh timing and error handling, with the last refresh date shown. Whether it runs through an API, an MCP server or a dated export, Finance remains the system of record and the grant record reads from it.
Does a clean exception list mean the numbers are reconciled?
No. Reconciliation needs a checked comparison with the authoritative records for the same scope and date. Record the reviewer, date, source and explanation for each difference, and keep unresolved items visible in the snapshot.