What purpose does informal distribution of funds serve in BI?

The informal distribution of funds in Budgeting and Investment (BI) primarily serves the purpose of aiding planning and reporting without directly affecting fund control. This means that organizations can allocate resources and discuss potential funding initiatives among team members or departments informally, allowing for flexibility and collaboration during the early stages of financial planning.

This approach enables teams to strategize and develop budget proposals that align with their goals while still maintaining a level of oversight in fund management. Informal distribution supports the planning phase, where ideas can be shaped and refined based on preliminary discussions regarding budgetary needs and expectations. Consequently, these informal allocations are vital for establishing a comprehensive budget strategy without immediately affecting or locking in formal fund control mechanisms, thus preserving adaptability during the budgeting process.