Finance and Budget Putting Your Money Where Your Mission Is CCEM Chamber Management Academy Finance and Budget Putting Your Money Where Your Mission Is Presented by Angi Baugher

1. Supportive of Mission FINANCE PRINCIPLES 2. Accountable 3. Prudent 4. Transparency

FINANCIAL STATEMENTS ASSESSMENT Are they: Reader friendly Reflective of actuality Comparative to budget Reviewed by Finance Committee & Board monthly Evaluated at year-end

REMINDERS Fraud Prevention Stated Policies 50 – 50 Goal Internal Controls Fraud Prevention Stated Policies Dues / Non-Dues Ratio 50 – 50 Goal

BUDGET DEFINITION A plan of forecasted cash receipts and expenses for a specific time period

NEED FOR A BUDGET Budgets formalize planning, serve as a basis for performance evaluation, and assist in communication and coordination within an entity.

3 TYPES OF BUDGET Operational Budget Long Range Budget Capital Improvements Budget

An annual spending plan for the cash flow of the organization OPERATIONAL BUDGET An annual spending plan for the cash flow of the organization

ANNUAL OPERATIONAL BUDGET Should reflect the Chamber’s priorities and goals Should support the Plan of Action

BUDGET DEVELOPMENT Define the Philosophy Define the Process Identify Participants Assign Responsibilities Develop Timeline

CONT’D. Gather Input and Research Create Drafts & Final Version Present to Board for Approval Create Staff & Volunteer Buy-In Monthly Financial Reports

MID – YEAR ASSESSMENT Modify Vote to Amend

YEAR END ASSESSMENT Comparison to Actuals Identify Changes to Strengthen Process

Typically 2 to 5 years of projected receipts and expenditures LONG RANGE BUDGET Typically 2 to 5 years of projected receipts and expenditures

CAPITAL IMPROVEMENTS BUDGET Plan for costly, non-annual asset purchases

COMMENTS & QUESTIONS