What should the policy statement clearly outline?

A well-crafted policy statement serves a critical function within financial planning and budgeting, as it provides guidance and direction for decision-makers and stakeholders. The correct choice emphasizes that the policy statement should explicitly articulate the intent of the policy and the mandated actions that are required to achieve that intent. This focus ensures that everyone involved has a clear understanding of the purpose behind the policy, as well as the specific actions that need to be taken to comply with it.

By defining both the intent and the mandated actions, the policy statement serves to align the objectives of the organization with the operational steps necessary for implementation. This contributes to effective governance and accountability, as individuals know exactly what is expected of them and how their actions should support the overarching goals of the organization.

In comparison, other elements, such as enforcement procedures, context of creation, and expected outcomes of non-compliance, while important, do not encapsulate the primary function of the policy statement itself. These aspects can be covered in the broader policy document, but they are secondary to outlining the core intent and required actions that guide behavior and compliance.