Budgeting Greg Hungerford

Financial Planning Budgeting Definitions to assist with the setting of the club’s objectives. Budgeting to assist with the achievement of the club’s objectives.

Planning & Budgeting Process Identify Goals & Objectives Re-evaluate Plans & Budgets Develop Long Term Strategy Measure Performance Develop Short Term Strategy Develop Budgets

Achieving Objectives Overall ‘Departmental’ Co-Ordination Motivation Purposes of Budgets Achieving Objectives Overall ‘Departmental’ Co-Ordination Motivation Monitoring

Research, Time and Knowledge Cost Revision and Attention Allocation Considerations Research, Time and Knowledge Cost Revision and Attention Allocation Cash Flow Strategic Planning Accountability Confidence

The Economy The Market Competitors Marketing Effort Capacity Budget Drivers The Economy The Market Competitors Marketing Effort Capacity

} Board CEO Senior Managers Organisational Support Staff Suppliers Stakeholders Board CEO Senior Managers Staff Suppliers Members } Organisational Support

Communicating Roles and Responsibilities Educating and Training Operational Support Communicating Roles and Responsibilities Educating and Training Access to Data Budget Inputs Knowledge Sharing

Budget Framework Operating Budgets Sales Production Costs/Units Inventory Purchases Expenses Capital Expenses Financial Statement Budgets Profit and Loss Account Balance Sheet Cash Flow

Flexible Budgeting Contingency Planning Budgeting Approaches Range of Sales/Production levels Fixed/Variable Costs Contingency Planning Controllable Factors Uncontrollable Factors

Revenue Centres Cost Centres Profit Centres Investment Centres Responsibility Accounting Revenue Centres Cost Centres Profit Centres Investment Centres

Used in next budgeting process Visuals Training Documentation Circulation to many Used in next budgeting process Visuals Training

Key Performance Indicators Using Budgets Milestones Key Performance Indicators Measurements Metrics

Cycle Actual Data Presentation Formats Budget Variances Monitoring Reports Analysis

Budget Variance Analysis Current Variance Projected Variance Underlying Driver Outcome Cause Action Impact

Traffic Light Approach Management By Exception Traffic Light Approach Green – Business as Usual Orange – Minor Variance Red – Urgent Attention

Controlling Trend Analysis Contingency Plans Improvements

THANK YOU

Club Managers Leadership and Management Program ACCM (Contextualised) Diploma of Leadership and Management Practical & Implementable (Managers Toolkit) 12 Modules Individual Skills Team Skills Organisational Skills Online & Self-Paced