What is meant by cross-funding?

Cross-funding refers to the practice of allocating funds from one department or budget to cover expenses in another department. In this context, choosing to pay employees from another department signifies that the resources are being shared or reallocated to ensure that operational needs are met, particularly when one area may have surplus funds while another may be facing a shortfall. This approach allows organizations to be more flexible with their financial resources, facilitating effective resource management and ensuring that critical services can continue without interruption.

The other options, while related to budgeting and financial management, do not accurately capture the essence of cross-funding. For example, funding training programs, budgeting for future expenses, and making employee salary adjustments do not involve the direct reallocation of funds between departments in the same way that cross-funding does.