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A budget is a planning document described in numerical terms. As you begin the budget development process, you will want to obtain guidelines from the client, sponsors and event committee. For example, a client may request that only a certain percentage of their sponsorship be allocated to entertainment, with the rest to be allocated to hospitality. Guidelines must fit with the overall goals and objectives for the event.Next, you will identify, categorize and estimate (with real research not guesstimates) the cost areas and revenue sources. The categories become the items in the budget. Once costs and revenue sources are identified, a draft budget is prepared and submitted for approval to the client or controlling committee. The draft budget is also used for grant submissions and sponsorship.Finally, it needs to be remembered that a budget is only an approximation of reality. It is a plan for what should be done not reality itself. It will need to be adjusted as the event changes and new information comes to light. Hence this is the reason we consider budgets (like timelines) to be living, breathing, and changing documents. A budget is a vital part of the financial management of events.Based on what your group has created thus far for your event proposal, your group is challenged to create an itemized budget for your event with at least 15 items.