Organizations allocate budgets to different departments and business activities for the effective and efficient management of business practices. At certain times, an organization may experience a surplus in the budget and it may decide to inform its employees through a letter. The employer writes the letter in which he addresses the employees and notifies them about the surplus as well as how that may be utilized.

A budget surplus may occur due to many reasons. Some of which are:

• A donation
• A seasonal sales increase
• Departmental or business level effective budget management
• Reduction in inflation or prices of raw materials, etc.

When a budget surplus arises, the business might decide to inform its employees through a letter for different reasons such as:

• The employees feel involved and part of an organization when they are formally informed about such things.
• An organization is distributing the surplus as a bonus to its employees. It might prove to be motivational as well as the employer-employee bond would be strengthened so the employee knows that the employer cares about him.
• It might be used for upgradation of machinery, renovation of office, etc. and the business wants to involve its employees.
• The business needs to seek advice from employees as to how the surplus should be utilized as the employees know the precise requirements of the departments.

The letter written for announcing a budget surplus to employees needs to be formal, concise and should serve the purpose of the announcement. It, usually, includes the following details:

• Date
• Details of the employer
• Year of surplus
• The details of utilization
• Motivational statement (if it is due to business efficiency)
• Seek advice (if required)

The budget surplus is beneficial for the company as well as the employee which is why the managers often involve employees and inform them about it.

Sample Letters

Letter -1

Announcement to get a loan due to a budget surplus

Due to a reasonable decrease in the machine prices, the company this year is observing a budget surplus. The board members have decided to use this money for the betterment of staff members. We have decided to grant the loan to the staff members who by any reason want some cash in hand. The interested candidates are requested to fill the loan request form within 4 days and submit the same to their supervisors so that loans can be given accordingly.

Letter -2

Announcement to buy school items due to a budget surplus

This year the school has received immense donations from people which have become a reason for our budget surplus. The management has decided to invest the amount in the purchase of classroom furniture and multimedia for every class as to ease the teaching process. If you have any suggestions, we can surely have a discussion over it in the upcoming meeting. Your valuable suggestions will be welcomed.

Letter -3

Announcement to employees for free bus service due to a budget surplus

The company this year is observing a budget surplus which needs to be consumed within this fiscal year. The management has decided to start a bus service for our employees who come to the office by using public transport.  Till now only 3 buses will be used for this purpose but with time the number will be improved. All buses will be fully air-conditioned.

Employees willing to get benefited by the service need to fill the transportation usage form and submit it to the HR department for further processing.