I am preparing a line budget and a functional budget. I need to know how a functional budget example look. There are two different programs; one program uses 60% and the other 40%, I need an example of how the budget should actually look.

To create a functional budget, you need to allocate funds based on the functions or activities of your organization rather than focusing solely on specific line items. This type of budget is often used by businesses, nonprofits, and government entities to ensure that resources are allocated appropriately to support various programs or departments.

Here's an example of how a functional budget could be structured for an organization with two programs, one using 60% and the other using 40% of the budget:

1. Start by listing the different functions or activities of your organization that require budgetary allocation. In this example, we'll consider two programs called Program A and Program B.

2. Allocate the budget based on the percentage allocation for each program. Assuming you have a total budget of $100,000, Program A would receive 60% ($60,000), and Program B would receive 40% ($40,000).

3. Break down the budget for each program into specific expense categories. For example, if Program A deals with marketing initiatives, you might allocate 30% of its budget ($18,000) to advertising, 20% ($12,000) to public relations, and 10% ($6,000) to market research.

4. Similarly, for Program B, if it focuses on product development, you could allocate 50% of its budget ($20,000) to research and development, 30% ($12,000) to prototyping and testing, and 20% ($8,000) to production expenses.

5. Continue breaking down the budget for each program based on their specific needs and expense categories. For instance, if Program A requires staff salaries, office rent, and equipment, allocate the funds accordingly. Similarly, for Program B, consider expenses like salaries for research staff, equipment costs, and other relevant expenses.

Remember that this is just a simplified example. The actual structure and breakdown of the functional budget will depend on the specific needs and priorities of your organization. It's important to involve relevant stakeholders and consider historical data, future projections, and organizational goals when creating a functional budget.