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Managing Your Money II: Intermediate Budgeting

Managing Your Money II: Intermediate Budgeting. Review. Fundamental or Key Concepts. 1 st things 1 st – Mission & Strategy Budget Philosophy Budget Process Purpose Message Plan. Unique Requirements. Budget Structure Timing or sequence of information Partial year considerations

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Managing Your Money II: Intermediate Budgeting

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  1. Managing Your Money II: Intermediate Budgeting

  2. Review

  3. Fundamental or Key Concepts • 1st things 1st – Mission & Strategy • Budget Philosophy • Budget Process • Purpose • Message • Plan

  4. Unique Requirements • Budget Structure • Timing or sequence of information • Partial year considerations • Month to month variations • Cost allocations • Expectations – Outcomes & Performance Measures

  5. Strategy – “ We must . .” Key issues to address Program & service priorities Budget – Staffing Activities Capital Connecting the Dots

  6. Outcomes & Measures

  7. Today’s Topics • Justifying / Presenting • Monitoring and reporting • Corrections, adjustments & flexing • Taking the initiative

  8. Justifying / Presenting • Consider the audience • Consider the format and context • Before you get to the Board of Directors • Internal hurdles • Preview it

  9. Justifying • jus·ti·fy  (j s t -f ) v.jus·ti·fied, jus·ti·fy·ing, jus·ti·fies To demonstrate or prove to be just, right, or valid: justified each budgetary expense as necessary

  10. Use what you have already done – Outcomes & Measurements – be selective • Written narrative – be careful • Make comparisons – be creative • Close the loop – be direct • Above all – be honest

  11. Budget Presentation Example

  12. Activity # 4 • What are your justification and presentation challenges? • What do you need?

  13. BREAK TIME • Take a ______ minute Break. • Necessary Room • Back at ______ a.m.

  14. Now the hard part

  15. Monitoring and Reporting It’s all about executing the plan How will you know if you are on track with the budget? Can you explain it?

  16. Examples of Reporting

  17. Activity # 5 • Discuss your current monthly reporting. • What can be done during the month to monitor your agency’s status? • Discuss what you are currently doing and improvements.

  18. Helps Build for the Future • Tracking helps build historical data • Valuable performance and benefit • Aids in the next budget cycle or grant proposal.

  19. LUNCH • Correcting, adjusting and flexing • Taking the Initiative • Homework assignment

  20. Corrections and Adjustments • These are not “do overs” for little bumps or glitches. • Significant new information or events. • Grants – contacts – major donor or funder • Disaster (weather, destroyed or impaired assets)

  21. Questions to consider • Does this affect greater than X% of the staff? • Does this impact a contractual agreement? • Can the impact be mitigated or absorbed by other actions? • What are the corrective action steps and how quickly can they be implemented?

  22. Develop a plan and response to the following scenarios: Significant fund raising event had to be cancelled. Federal Budget cuts resulted in your grant not being renewed (6 months into year). Major program that serves 300 people, has 15 staff and high profile. Insurance renewal for Health & Dental came in with 25% higher premium than budgeted. Unanticipated notice of extremely large grant award. Activity # 6

  23. BREAK TIME • Take a ______ minute break • Necessary Room • Back at ______ p.m. • Hang in there you’re doing great.

  24. Taking the Initiative • Challenge yourself • Come prepared • Lead the discussion • Take no prisoners 

  25. What are two hard questions you need to ask yourself during the next budget process? Practical examples of coming prepared and leading the discussion. Activity # 7

  26. Homework Assignment • Choose between your budget or mine. • Your budget: • Prepare a key factor (high level) summary sheet. • Write a one item narrative. • Chart or graph for revenue and expense. • My budget:

  27. Homework Assignment cont. • Choose between your budget or mine. • My budget OGT:

  28. Course Goals & Objectives • Expand existing budgeting skills • Develop analytical & critical thinking • Develop techniques that link & monitor budgets to operational performance • Apply newly learned ideas to current budgeting responsibilities

  29. Questions?

  30. Before you leave, help us keep this classroom clean!  End of the day checklist: Put all trash and recycling in the proper bin Stow all class materials in the vestibule in the front of the classroom (this includes name cards, markers and any extra parking passes, etc.) Clear tops of tables and put tables back classroom style Push chairs in Thank you for your consideration!

  31. We hope you enjoyed this class! • After you leave today: • Complete the end of class survey in your email • Remember every semester we award a free class to one student who completes a survey!!!! • Check your VCU transcript to track your progress towards the Certificate of Achievement in Nonprofit Management. Our website has a FAQ with instructions.

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