Being over budget comes from bad planing. To avoid such situation, I would ask the team to review all the projects and related costs for more than one time and consider price increases related to inflation and scarcity of the needed materials and services. Detailed cost planning minimizes the risk of being over budget.

A very structured approach would be needed for RCA: 1. Identification of the line items that are major contributors of buget overrun, 2. Budget assumptions, how realistic they were? 3. Data used, how accurate/updated/relevant the data was? 4. Projection methodologies, how appropriate/error free they were? 5. Correctness, relevance, and appropriateness of other factors like macroeconomics, microeconomics, CPIs, Forex, other indexations & growths etc. 6. Companies own expansion and growth plans and their appropriate inclusion in budget preparation.

Addressing consistent budget overruns requires a structured and empathetic approach. First, I’d review the specifics of the budget with the team member to identify root causes—whether it’s unrealistic projections, unexpected costs, or lack of oversight. Next, I’d collaborate with them to establish clear spending guidelines and implement tracking tools for better visibility. Providing coaching or training on budget management is also crucial. Finally, I’d set regular check-ins to ensure accountability and support, fostering a learning environment where challenges turn into opportunities for improvement.

Well in my opinion if there is a consistent exceed in budgets, though by team members or otherwise, the root cause could not merely be the team member. Although the questions specifically states “your team member is consistently over budget”. The underlying assumption is that there maybe non-compliance in his or her adherence to the allocated funds. A review of the budgets and variances are prior research crucial to conclude that. Either way, if the team member has been allocating funds despite the presence of a budget, which is the purpose of accounting, the irresponsibility here lies with the initial budgetary observation. The word “consistently” in the question clearly demonstrates management failure to manage the issue.

Addressing a team member’s consistent budget overruns requires a balanced approach of accountability, support, and collaboration. To begin with, there is need to review the budget details together to understand the specific areas where overspending is occurring. This helps identify whether the issue stems from unrealistic budgeting, unforeseen challenges, or poor financial management. Afterwards, engage the team member in an open, non-confrontational discussion to uncover the root cause, showing that your goal is to support improvement rather than assign blame and provide clear guidance on the financial expectations for the period based on the organisational goals.