What should be included in an acquisition budget to be presented to governance?

• A. Cost of the work, related costs (insurance, conservation, framing, transport), sources of funds, contingency; expected benefits, timeline.
• B. Only the sale price; no other costs.
• C. Only insurance costs.
• D. Only framing cost.

Answer: (C)

The main idea here is that an acquisition budget for governance must present a complete and decision-ready view of what the purchase will cost, how it will be funded, and why it matters, all tied to a realistic timeline. A strong budget goes beyond the price of the work and spells out all related costs, funding sources, risk buffers, expected benefits, and when funds will be needed. Insurance is indeed a related cost, but it is just one piece of the financial picture. Including conservation, framing, transport, and other incidentals helps ensure the total cost is accurate and that risk is managed.

Presenting the cost of the work plus related costs ensures governance can see the full financial scope. Laying out sources of funds clarifies who is paying and whether there are donor commitments, grants, or internal allocations. A contingency reveals how overruns or unforeseen expenses will be handled, which is critical for risk management. Stating the expected benefits connects the acquisition to the collection strategy and any anticipated gains (cultural, educational, financial, or reputational). Finally, a timeline shows when the budget will impact cash flow and how the acquisition aligns with organizational plans and approvals.

Focusing only on insurance or any single component misses these essential elements. Without the full cost picture, funding plan, risk cushion, justification, and timing, governance lacks the information needed to approve and monitor the acquisition confidently.