Which management function includes budget formulation?

The correct answer is funds management, as this management function encompasses the processes involved in planning, organizing, directing, and controlling a government's financial resources, including budget formulation.

Budget formulation is integral to funds management because it involves creating a detailed financial plan that outlines expected revenues and expenditures over a specific period. This process helps ensure that an organization allocates its resources effectively to achieve its objectives and maintain financial stability. It takes into account the available funds, the anticipated cash flows, and the projected needs for different programs and services, facilitating a comprehensive approach to financial management.

In contrast, the other options pertain to more specific aspects of financial management. Receivables management focuses on the collection of money owed to the organization, ensuring that income is received in a timely manner. Payables management involves overseeing the obligations and payments the organization must make to its suppliers and creditors, ensuring that expenses are controlled and paid on time. Reporting deals with the dissemination and interpretation of financial information to stakeholders, which, while needing the budget for context, does not involve the formulation of the budget itself. Thus, funds management is the most comprehensive answer that includes all elements related to budget formulation.