Bob, the audit supervisor, dialed the number at which he could find Earl, one of the senior auditors, who was engaged in an audit of the receiving department.
Bob asked Earl how the job was going.
"I was getting along pretty much on schedule. Bob. Receiving procedures are pretty good and the receiving clerks seem to know what they're doing."
"What do you mean you were getting along pretty well?"
"I was doing fine until I started reviewing receipts that bypass the receiving department."
"Oh, you mean direct deliveries?"
"Right. That has become a big problem."
"I thought it was going along fine the last time we audited it."
"It was. But direct deliveries were pretty light then. Now we've got a heavy development program going on, and the engineers are ordering a lot of the special parts and materials. Every order has to be delivered direct to the lab on the other side of town."
"What's the problem?"
"I'm not sure yet. Accounts payable is screaming that evidence of direct delivery receipts isn't getting to them in time and they're losing discounts."
"What do you want to do. Earl?"
"I'm going to have to spend some time at the lab and run the problem down. I figure it will take five more days than we'd budgeted the job for; so I'd like a budget increase."
"I'm not sure I can get it. Earl."
"Why not?"
"Direct deliveries were a part of the audit. The fact that there are problems shouldn't alter things."
"Seems unfair to me, Bob. I hate to run over budget, and this thing is not under my control."
"We really haven't set a firm policy on budget increases. Let me talk to Paul and I'll get back to you."
Bob broached the problem to Paul who agreed that it was about time to set a fair, workable policy on budget increases.
He set up a supervisor's meeting for the next day.
Required: 

Prepare a paper in the form of a staff memo setting forth policies and procedures for budget revisions.